So VAT applies to equally tax-registered businesses managed on the UAE mainland and in the free zones. So if you do business outside they need not register for VAT, BUT one more thing to be the mind that if your company has more than AED 375,000 each year then one needs to do the vat registration in uae. So for registration, they need to have all document and up to date of all the company details.
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I agree with your statement that VAT applies to all businesses that are registered in the UAE, regardless of whether they are located on the mainland or in a free zone. However, there are some exceptions. For example, businesses that only make supplies to other businesses that are not registered for VAT are not required to register for VAT.
The threshold for mandatory registration for VAT in the UAE is AED 375,000. This means that businesses that have a turnover of more than AED 375,000 in a 12-month period are required to register for VAT. Businesses that have a turnover of less than AED 375,000 may choose to register for VAT voluntarily.
To register for VAT, businesses must submit an application to the Federal Tax Authority (FTA). The application must include the following information:
- The business’s name and address
- The business’s registration number
- The business’s tax identification number
- The business’s contact information
- The business’s turnover for the previous 12 months
Once the application is submitted, the FTA will review it and will notify the business if it is approved for registration. Once the business is approved for registration, it will be issued a VAT registration certificate.
Businesses that are registered for VAT must charge VAT on all taxable supplies that they make. VAT is a 5% tax that is added to the price of goods and services. Businesses can then claim a refund of the VAT that they pay on their business expenses.
Businesses that are not registered for VAT must not charge VAT on their supplies. If they do, they may be subject to penalties from the FTA.
Here are some of the documents that businesses need to have in order to register for VAT in the UAE:
- A copy of the business’s registration certificate
- A copy of the business’s tax identification number
- A copy of the business’s contact information
- A copy of the business’s turnover for the previous 12 months
Businesses should keep all of their VAT-related documents for at least five years.
In addition to the above, here are some other things to keep in mind when registering for VAT in the UAE:
- The FTA has a number of resources available to help businesses register for VAT, including a website, a helpline, and a guide.
- Businesses should register for VAT as soon as they meet the registration threshold. This will help them to avoid penalties from the FTA.
- Businesses should keep their VAT-related records up to date. This will help them to file their VAT returns accurately and on time.
- Businesses should seek professional advice if they have any questions about VAT.
By connecting with a good VAT consultancy in UAE, you can easily get VAT advises to follow the regulations.