Registration of VAT mandatory and voluntary for companies in Dubai
Value Added Tax (VAT), considered an all-purpose consumption tax, is imposed on the supply / goods and services of the conventional corporations. A VAT advisory company in the UAE is recommended to do business within a legal framework. For whom VAT registration is mandatory In the last one year, companies and individuals who have access to their taxable supplies are allowed to apply for VAT registration if the supplies are more than AED375,000 in the preceding 12 months. This assumes businesses will charge Value Added Tax (VAT) on their sales (output VAT) but can recover any VAT incurred on their purchases (input VAT). When your company has a turnover that falls below the required threshold for VAT registration , you do not have to apply for VAT. Only filing for VAT means you don’t have to distinguish the VAT in the records on transactions or sales. You should not charge VAT on your company’s revenue. It can, at first, seem like g...