Value Added Tax (VAT) is defined as a consumption tax applied on a good as its value is increased at each stage of its production or distribution. It is paid by the consumer at time of purchase of a product or service. It is an indirect tax that is related to a taxpayer’s consumption and not their income. VAT was introduced in UAE in 2018. Apart from essential commodities all goods and services are counted under this taxable limit. Every business falls under either mandatory or voluntary registration for VAT.
If the value of your companies taxable goods or services has exceeded AED 375000 in the past 12 months or if it will exceed this amount in the next 30 days your company falls under the mandatory registration slab. If the value of your companies taxable goods or services has exceeded AED 187500 in the past 12 months or if it will exceed this amount in the next 30 days your company falls under the voluntary registration slab.
A 20 working day time period is allotted for companies to apply for registration when the AED 187500 limit is crossed. Team Fame has been helping organisation in timely submission, application and filing of VAT registrations. We help go through the invoices in the mentioned period and prepare the documents to file. We also help obtain the Tax Registration Number upon completion of the process and also do the necessary work to get the corporate tax residency certificate.