Are all businesses liable to register under VAT?
No, only those businesses crossing the specified taxable supply turnover threshold are liable to register under VAT
No, only those businesses crossing the specified taxable supply turnover threshold are liable to register under VAT
Based on the specified taxable supply turnover threshold, a business will either be mandated to register or as an option, a business can apply for registration or can seek exemption from VAT registration.
Thus VAT registration in UAE can be classified as follows-
1. Mandatory VAT Registration
2. Voluntary VAT Registration
3. Exemption Registration under VAT
Thus VAT registration in UAE can be classified as follows-
1. Mandatory VAT Registration
2. Voluntary VAT Registration
3. Exemption Registration under VAT
Mandatory VAT Registration:
All the businesses who have a place of residence in the state of UAE and whose value of supplies in the member states in previous 12 months has exceeded AED 375,000 should mandatorily register under UAE VAT. Also, if the businesses anticipate that the total value of supplies will exceed the mandatory registration threshold of AED 375,000 in the next 30 days, then they too will have to register under UAE VAT.
Those businesses, who do not have a place of residence in the state of UAE, will have to compulsorily register under VAT irrespective of the registration threshold.
All the businesses who have a place of residence in the state of UAE and whose value of supplies in the member states in previous 12 months has exceeded AED 375,000 should mandatorily register under UAE VAT. Also, if the businesses anticipate that the total value of supplies will exceed the mandatory registration threshold of AED 375,000 in the next 30 days, then they too will have to register under UAE VAT.
Those businesses, who do not have a place of residence in the state of UAE, will have to compulsorily register under VAT irrespective of the registration threshold.
Voluntary VAT Registration:
All the businesses having a place of residence in the state of UAE who are not required to mandatorily register under VAT, are given an option to voluntarily apply for VAT registration This can be done, only if the annual supplies or taxable expenses incurred is not less than voluntary registration thresh¬old. The Voluntary Registration Threshold is AED 187,500 which is 50% of the mandatory registration threshold.
All the businesses having a place of residence in the state of UAE who are not required to mandatorily register under VAT, are given an option to voluntarily apply for VAT registration This can be done, only if the annual supplies or taxable expenses incurred is not less than voluntary registration thresh¬old. The Voluntary Registration Threshold is AED 187,500 which is 50% of the mandatory registration threshold.
Exemption Registration under VAT :
All the businesses who are engaged in making only zero-rated supplies may request for VAT registration exemptions.
All the businesses who are engaged in making only zero-rated supplies may request for VAT registration exemptions.
