Businesses start small but always have the potential to go big. And in that process, the legalities for accounting and taxations have always needed to be kept in mind. Doing business in UAE requires VAT registration if your turnover is over AUE 375000. You would be required to do a VAT registration in UAE with the FTA. And without the help of a VAT specialist, the process can be tough. But, there are some hidden benefits small business owners enjoy from being VAT-registered which makes the process worth considering.
VAT registration in UAEonline VAT registration
Most businesses, especially those that are established, will be hesitant in working with a startup unless it is registered for VAT in UAE. For a business to not be able to issue a proper invoice, it loses potential clients. This is not a good sign especially for growing small businesses. This is why it is best to get VAT-registered and provide clients the confidence from knowing that they are working with a reputable and serious business.
VAT, as you may already now, is tax paid on goods and services. There are items that are exempt from taxation such as some types of property and financial transactions. Value Added Tax is normally added in prices of goods and services with some exemptions. Talk to a VAT expert to discuss your specific situation.
Transactions that are considered as VAT exempt include basic necessities e.g. transportation, books, lending activities, agricultural products, real estate properties, and tuition fees. VAT can be reclaimed if it is paid on goods or services for use of a business. If you are not running a business that has registered for VAT, then you can’t get a refund for VAT.