VAT Registration Threshold
VAT compliance in Dubai is important for companies at the time of VAT registration. As per the guidelines of the VAT, a business must be registered for VAT if the turnover of the company crosses AED 3,75000 yearly. If their yearly turnover is less than AED 3,75000, the registration is not mandatory for the companies.
VAT Compliance Requirements in UAE
The UAE government has been implemented the VAT in the country from 2018, so the companies and businesses need to get registered under VAT. There are some VAT compliance requirements in UAE as discussed below-
Registration for VAT
The businesses need to get registered for VAT if they meet the minimum criteria of turnover. All registered companies will get a Unique Tax Payer Registration Number. Companies should be registered under the VAT law if their annual revenue is at least 3.7 million AED. The registration for UAE VAT is optional for the business with annual revenue between 1.8 and 3.75 million AED.
Financial Transaction Recordings
It is necessary for all companies in the UAE to maintain proper financial transaction records. The financial records of the companies should be accurate, updated, and trustworthy.
VAT Credit Claims
The businesses have right and they can claim tax credits on all business-related services and products purchased.
Filing of Periodic Tax Returns
Preparing formal tax returns on regular intervals is necessary for the companies registered in UAE VAT.
VAT Charges
The companies and businesses will be charged for VAT on all taxable products and services sold by them. CBD Accounting and Tax Consultant is one of the leading VAT consultants in Dubai. We offer complete services for VAT Compliance in Dubai, UAE.