VAT REGISTRATION IN THE UAE

Value Added Tax (VAT) is a tax on consumption imposed on goods and services at every step of the supply chain. Starting from January 1, 2018, VAT registration is compulsory for businesses that meet certain requirements in the UAE. It is important for businesses in the UAE to comprehend the VAT registration process and compliance requirements to prevent penalties and maintain seamless operations.

Under the UAE VAT legislation, companies offering taxable goods or services must register for VAT if their yearly revenue in the previous year is over AED 375,000 or is predicted to exceed this amount in the next month. Accurately assessing your turnover and monitoring any changes that could lead to the compulsory registration requirement is crucial.

Types of VAT Registration

Registration for VAT on a voluntary basis:

Companies with sales ranging from AED 187,500 to AED 375,000 can choose to register for VAT. While not required, enrolling in VAT can offer various advantages and opportunities like being able to reclaim input tax and enhancing business reputation with customers and partners.

Mandatory requirement for VAT registration:

A company is required to enroll for VAT if its taxable sales and imports surpass the compulsory registration limit of AED 375,000.

After obtaining the Tax registration Number (TRN), companies must add VAT to customer invoices and adhere to the rules and regulations set by the Authority when making any required changes.

Our team of VAT specialists assist you in adhering to VAT registration regulations promptly. By doing this, you will guarantee the smooth continuation of your business operations and prevent any possible interruptions.

Achieve seamless VAT registration and compliance with Cornerston's professional VAT registration services in the UAE. Let us help you navigate the complexities of VAT regulations and ensure your business operates within the legal framework.