While you are talking about the recent guidelines of tax system in UAE, you will see that the system is getting matured day by day. Tax system in UAE is changing in a rapid pace with the every passing day. Earlier the business in UAE were facing difficulties regarding paying the tax under the VAT regulation. This is the reason people used to face fine for not being able to pay tax on time. In order to pay the VAT you need to register your business under the Federal Tax Authority.
The Tax mechanism is very beneficial for the small companies; although, the larger companies are also being benefited. In the case of bigger organization there is an issue in compliance that does not impact the tax. The article is going to talk about the how to register for tax.
Steps for Register for Tax
- Tax invoice- The people from large business tax invoice not always easy for tax payment. You need to show adequate records about your business so that you can file exact tax. You need to show the specific documents for supply so that you can practical invoices. There are businesses that do real struggle to show the exact VAT rate. When a tax invoice is issued the foreign exchange rate also comes up.
- Credit note- While registering for tax the businesses are asked to not to reveal any confidential data in particular. The tax credit note is not needed if you have sufficient record.
- Tax period- In order to pay the tax you need time. You need to check the accuracy of the tax. A tax period is given to pay the tax; and that is usually 6 months.
Benefit of Business Registration
- The invoices are issued earlier
- The tax-paying time limit will be 12 months
- You can proceed with taxable supplies
Constant refund for a business- Your business will get refund position. The tax period is always two months. And the period does not change at any circumstances. The Federal Tax Authority will do the necessary evaluation. After the evaluation the registrant will know if there are any changes needed.
Funding for the small and medium business- The registered small and medium business are already getting financial facilities can apply for a request to change in tax period. The government also considered the change.
The small and medium business without funding- the small and medium businesses that are registered but cannot get government funding, will receive 12 months’ preceding for supplies. In that case they need to pay the tax in 12 months.
Stagger- In many cases it has been seen that the business are aligned with taxpaying years. They will be able to pay the tax within the financial year. So, definitely reduces the burden of the tax.
Time extension for the goods- The Federal Tax Authority provides ample time for exporting goods. However, the registrant needs to explain the original reason. You need to determine the scenario that may go beyond the supplier; and if that happens then a 3-month time will be sufficient.
If you are planning to register your business in UAE you need to get good knowledge about the tax system. GCC Filings will help you immensely in this regard along with company incorporation, VAT registration, Tax return filling and auditing among other essential services.