A lot of changes have been brought in UAE by the introduction of the VAT. Due to this, there are so many questions in the mind of the people regarding VAT in UAE. to answer all of those questions and to make sure that the people do not feel confused about VAT, here are some of the answers to the questions asked every now and then;
FAQ 1: Should I be registered for VAT?
If the taxable supplies of yours have reached the threshold, you must get registered for VAT as soon as possible. this is the right way and this is how you should act according to the rules and regulations in UAE.
FAQ 2: What is the threshold for the registration of VAT?
If your business transactions exceed a threshold of AED 375,000 in a period of 12 months, you will become eligible for the registration of VAT. The main thing that you must keep in mind is that if you think that your business taxable supplies will reach the threshold in the coming 30 days or less than that, you should get registered for VAT anyhow. This is because if you reach the threshold in the coming days and not register for the VAT, you might get in a problem.
FAQ 3: Can I register for VAT voluntarily?
Yes, so many people have and can register for VAT voluntarily as well. if the taxable turnover of your business is less than the threshold but more AED 187,500, you can register for VAT voluntarily.
FAQ 4: Can I form a tax group?
Yes, a tax group can be formed between the people who want to share the burden of taxes between them. For that purpose, the formed group should file an application. The person filing the application will be the one to become the representative of the group. The former group will be assigned an account number and they all ill divide the tax between all the group members.
FAQ 5: How to get registered for VAT?
If you want to get registered for VAT, you can get the form of the VAT registration on the website of FTA. You can fill the form and submit it to get registered. Filing the registration of VAT is quite easy and the portals that have been made are very user-friendly as well.
FAQ 6: How much percentage of the VAT is implemented on the people in UAE?
The imposed percentage of VAT in UAE is 5%.
FAQ 7: How does VAT work?
After getting registered for vat, you will come under the category of those people who will have to pay 5% tax on all the supplies.
Working of the VAT is not as difficult as people perceive it to be. If your supplies are exempt, you will not have to pay VAT. Same is the case with the supplies that are zero-rated.
FAQ 8: will I get punished if I do not register for VAT?
If you are eligible for VAT and are not registering for it, you will get punished or penalized by the FTA.