[vc_row full_width=”stretch_row” css=”.vc_custom_1523182439430{margin-top: -130px !important;background-position: 0 0 !important;background-repeat: no-repeat !important;}”][vc_column][vc_single_image image=”1600″ img_size=”720×400 ” alignment=”center”][vc_column_text]A business is a serious activity requiring time and effort usually being a commercial or sometimes an industrial enterprise within its pursue to overall profit-oriented. It is also a kind of work relating to the production, buying and selling of services or goods as it aims to make a profit.
The definition of business may cover several aspects of activities, such as industrial, commercial projects etc.
In the light of the executive regulations on value added tax VAT No. 52 for the year 2017 any business that exceeds the mandatory registration limit which is AED 375,000 over the past 12 months shall be registered for VAT. Also, any entrepreneur shall be register if the expected value of taxable supplies will exceed that limit within the next 30 days.
It is noteworthy that a Dh 20,000 fine shall be subjected to the one who fail to submit a registration application within the time frame specified in the tax law.
You can also register for VAT voluntary as your total value of taxable supplies exceeds the voluntary registration limit which is AED 187,000 over the past 12 months or it is expectable to be within the next 30 days.
The taxable supplies in which is determined by the law of VAT on the percent 5% or 0% of taxable goods or services carried out in the United Arab Emirates.
Good news also is that a ‘representative member’ who represent a group of companies shall have the right to register as a tax group in order to simplify the procedures and save costs as well provided that they have an establishment in the United Arab Emirates and are legal persons under common control.
Therefore, if you about to register for VAT keep in mind to bring records of all supplies and imports of goods and services, tax invoices, accounting records and documents in relation with the business activity. Henceforth, you will have to charge VAT on your business unless the zero-rated ones.
This significant financial mechanism makes a positive contribution to enhance the economy thus provide the country to keep going along the right line of sustainable economic development processes.[/vc_column_text][vc_column_text]
Questions?
If you wish to discuss or have any questions, please contact Yasin Al Hamed Advocates and Legal Consultants :
Email: info@yalhamed.com[/vc_column_text][/vc_column][/vc_row]