Value Added Tax (VAT) Guide: Information for Business Owners

Value added tax (VAT)

Vat or value-added tax is basically the tax that is applied to all the good and services. VAT is specifically applied to those companies who cross the threshold required for VAT. Due to the VAT, revenue is generated for the companies and they use that money for the welfare of the country.

VAT registration in UAE

VAT is not something very l in UAE. people in UAE are not well aware of VAT because it has got implemented very recently on 1st January 2018. Due to the recent implementation of VAT in UAE, people have started to consult vat consultants in UAE. the VAT Advisory Services in UAE are basically helping the people in getting information regarding VAT. Go to this link https://farahatco.com/services/vat-registration-uae/ for more detail.

Working of VAT

If you own a small business and have registered for VAT voluntarily, you will be subjected to the VAT. In that case, it will be applied to the goods and services that you sell. If you use any business goods for your personal goods, it will be applied in that case as well. this means that all the taxable supplied will be subjected to the VAT. By taking VAT services in Dubai you can stay safe from violating any rules and regulations which have been implemented to the business by the government.

Tax agent in Dubai

A tax agent in Dubai is someone who can help you with all your legal processes regarding VAT. He will be a legal person who has all the knowledge regarding VAT. Also, not all people can become tax agents. to become a tax agent, a person needs to be registered and should pass the tax agent test as well. if he does so, he can become a tax agent or else it would be illegal if he still acts as a tax agent.

The VAT agent will help you in VAT registration processes, vat return filling services and other VAT services as well. so, if you get their help from the start, you will feel stress-free all along your journey.

Are you eligible to register for VAT?

The annual turnover of the company matters regarding its VAT registration. This means that if the annual turnover of the company is more than AED 375,000, you will become eligible to register for VAT. It is to be noted click here to find more that if a company is eligible to register for VAT but still doesn’t do so, it will be punished or will have to pay fine as per the rules and regulations in UAE. so, make sure that you are aware of your annual turnover or else you can get fined by the authorities regulating tax in UAE.

Downsides of VAT

When you register for VAT, you have to do some extra paperwork to get registered and for other stuff as well. this cost a lot of time of the companies. This is where the vat consultants can help you with. They will do everything in place of you and you will be able to do your own company chores.