Get to know VAT norms with Dynamic Stream Consultant
The most common consumption tax- VAT is collected by more than 100 countries all over the world. The indirect form of tax is collected incrementally based on the value added at each stage of production or sales process. This kind of tax is applied to most transactions in goods and services. In UAE, VAT is introduced from 1st January 2018 and proposed rate of the VAT is 5%. Though basic food items, healthcare, education are not applicable for Value Added Tax.
Norms to register for VAT
Businesses have to make sure that their processes and procedures comply with the legal requirement set up by the Federal Tax Authority of UAE. So arise a question about who is required to register for VAT. According to the VAT guideline, any business or person with revenue AED 375,000 or more is mandatory to register under VAT. And if the revenue turnover is greater than AED 187,500, but didn’t exceed AED 375,000 businesses or person are applicable for voluntary registration. You will get a TRN for validation after you register.
Also, the consumers must be aware of their rights to ask for tax invoices from retailers while purchasing products and services which are liable for the value-added tax. Similarly, all taxable businesses must issue invoices to the customer when providing any supply.
How can we help?
With our experience of providing proactive solutions for ERP software, we support clients to manage their tax obligations. We comply with the VAT norms laid down by the UAE government and help your ERP system to upgrade according to the new tax policies. We help to sort out and fix technical challenges in your existing software in the implementation of the VAT.