Value added taxation is a valid excise that is imposed by the Central government on value added to goods and services prior to reaching to the ultimate consumers. The registration of VAT in UAE is compulsory and vital for all the traders or businesses who are involved actively with production or manufacturing of products and services. Value added taxes in European Union usually are a broad based consumption of tax evaluated on VAT to products and services. It is applicable to all the products and services that are purchased as well as sold for consumption or utilization in European Union.
How Registering with VAT in UAE
Undoubtedly VAT is one of the most important avenues of income when it comes to business when it comes to businesses and trading bodies. It is strictly meant to be implemented if your remuneration of business exceeds a certain amount. VAT registering your business comes with plenty of pluses.
The first one is that you will be able to use a ‘Set – off’ that actually differentiates the VAT offered to the VAT you attain from your consumer and the one you supplier. Hence, in a nutshell value added tax for a specific item needs to reach the Government just once. Hence, if you did pay some VAT earlier you can now cut-off the amount from what your consumer had given you.
Registration of value added tax is needed when your trade turnover exceeds more than five lakh INR as mentioned before. It basically helps your enterprise appear reputed and well-established. It earns trust from entrepreneurs and helps you expand your business in a more secured way in the future.
You also become entitled for refunds of VAT which means that you will be able to claim taxes that you have paid in a European nation if you have bought any products there.
You can also check the status of your dealer or VAT status or status simply by inputting your VAT registration number. Therefore there are no difficulties in going through the documents or even the receipts when the last VAT had been paid.
Now the question is how to get a VAT number. Many, who are new to the business world or have reached an annual income of 5 lakhs, have this question and the following information is going to help you with that!
VAT Online Registration Method in UAE:
The procedure of getting VAT number is more or less similar; however, it might vary to some extent as per the country or region you are a citizen of. Before going through the steps are prepared with your necessary documents and registration fees.
Log on to the state VAT website that you have created an account with and select the registration option
Input required information and attach the documents as per the requests of your enterprise.
You might be provided with a temporary VAT number.
You will get your permanent VAT registration number in UAE just after the completion of the verification. After receiving that, you will be able to check the status of your VAT online anytime you want to.