VAT stands for Value Added Tax, and this has been come into the picture in the GCC block, consisting of six nations. Being authorized and registered under VAT law actually means that the business has been simply acknowledged by government, as the supplier of services and goods and this is also authorized to collect VAT from customers and remit the same to the government. Only VAT registered businesses will be allowed to do the following:
- Charge VAT on the taxable supply of various services and goods
- Claim Input Tax Credit on VAT paid on their purchases. This will be deducted from VAT liability on sales
- Payment of the VAT to the government
- Periodic filing of VAT return
Apart from the above, each and every VAT Registration for UAE Businesses have to simply align the business reporting structure in line along with compliance needs like accurate and updated books of accounts, tax paid documents such as Tax invoice, credit notes, debit notes, records to all inward supplies and outward supplies etc. are required to be maintained.
Consequently, comprehending all the basic facts of VAT will count as one of the noteworthy steps for the VAT obtaining as well as preparing the VAT registration. In fact, this will be considered as the first step towards transiting your businesses to the VAT era.
How to Apply for VAT Registration in Dubai, UAE
As you know Local Tax Dubai needs to be registered. In UAE, businesses whose turnover exceeds AED 375,000 have to mandatorily apply for VAT registration. To make the business register possible, FTA or Federal Tax Authority has simply opened the portal for the online VAT registration. The deadlines based on the turnover of businesses are already have been announced by FTA and the entire process of the registration will be carried out in a phased manner. While it is crucial for businesses to decide their obligation towards VAT registration, this is also significant for the businesses to know how to apply for VAT Registration and understand the level of details required completing the online registration process.
But you will always have to remember one thing that before you apply or start the online VAT registration process, you need to have the good understanding of VAT registration process. Apart from that, you will also have to ensure that you get to know about the type of details, which has been needed to complete the procedure.
Some of the Important Details you Need to Know are:
- Creation of e-Service Account
- Login to your e-Service Account
- VAT Registration Form: The online VAT registration form includes 8 sections as shown below, in under which the details need to be furnished for completing VAT registration
- About the applicant
- Contact details
- Details of the applicant
- Banking details
- About the VAT registration
- Business relationships
- Declaration
- Review & submit