VAT or Value added Tax is applied on the goods that are consumed by the people. VAT is an indirect tax that is levied in around 180 countries in the world and UAE is one of them. The end-customer has to pay the tax and the businesses collect it on the behalf of the respective government. In case of UAE, the Federal Tax Authority was established in 2016 that looks after the taxation process. The tax is collected to increase the revenue and that will help in the betterment of public services. The VAT in that case is charged in every step of the supply chain.
In order to do business you need to register your business under the respective government. When you register your business you need to provide taxable goods and services to the people. In order to supply the taxable as a business owner you need to follow certain things. In most cases the rules are set by the respective government of the country.
There are Different Requirements for VAT Compliance and they are Given Below.
- Invoice date
- Invoice number
- The details of the business including the VAT number
- Details of the customers
- Details of the supply
- Details of the applied VAT rate
- Details of the NET, VAT, and gross values
VAT or Value added Tax is implemented on the consumption of the goods or service. The VAT is implemented on the supply chain and not only that but also the value is added on the every stage. The end-users need to pay the tax on the cost of the product that is lesser than the cost of the material. The VAT is implemented in around 180 countries in the world and it helps to raise the revenue of the country. The VAT highly depends on the consumption of the goods and services but not on the tax payers’ income. In case of implementing VAT it is charged on the gross margin at every stage of manufacturing, distribution and sales.
If your business is eligible for monthly VAT return then only you can apply for VAT return filing. In order to file for VAT return you as a business owner need to take help from the Federal Tax department. The department is designed to look after the steps and accept the return and the process is done both online and offline. In order to file the VAT return you need to know that there are different categories and you need to see in which category your business belongs. While filing for return you need to provide all the details and the information needs to be relevant.