The UAE is all set to introduce VAT (Value Added Tax) from next year. The issuance of the final tax law has set the ground for implementation of VAT in Sharjah Medical District, Sharjah and meeting the implementation deadline.
The primary objective behind implementing VAT is to make a paradigm shift in the business dynamics of the country as well as the region. Alike other countries across the world, businesses in the Gulf region also will now have to observethe stringent VAT regulatory and statutory compliances and report the same on a timely basis. The challenge for the business community in the Sharjah Medical District, Sharjah will be to understand the new VAT Law and implement the same well before the due date.
According to UAE Federal Authority, businesses with annual turnover of more than AED 375,000 should apply for registration on or before December 4, 2017.
It has become mandatory for businesses to register for VAT in Sharjah Medical District, Sharjah which is going to take effect from 1st Jan, 2018. All businesses with threshold annual turnover of AED 375,000 must register for VAT. According to an estimate, around 3.5 lakh business firms are expected to get registered under the new tax regime.
Being a prominent business hub, Sharjah Medical District, Sharjah holds a special place when it comes to make VAT registration successful and effective. The businesses that don’t get registered for VAT won’t be able to charge VAT on their sale and claim Input VAT paid on their purchases.
With online registration for VAT in Sharjah Medical District, Sharjah is open, getting a business VAT registered in no tough job. In order to ensure easy and faster registration process, the respective authority has taken various measures for businesses eligible for registration.
At United VAT, we aspire to become your most sought after partner for VAT registration in Sharjah Medical District, Sharjah. From giving necessary VAT related information to providing full-fledged assistance in regard to VAT in Sharjah Medical District, Sharjah, we are right here to make VAT registration a smoother journey for businesses.
The registration criterion is given below:
Mandatory Registration: It is mandatory for the businesses to register themselves if
· The annual turnover exceeds AED 375,000 and this threshold must have been exceeded in the last 12 months
· Taxable supplies can be made by the business in next 30 days that will have a value more than the threshold of mandatory registration.
Voluntary Registration: The businesses that don't match the mandatory threshold criteria can choose to for voluntary registration if
· Their annual turnover exceeds AED 187,500 but is below AED 375,000 and this threshold is expected to be exceeded in next 30 days.
· In last 12 month duration, the taxable expenditure exceeds the worth of voluntary registration threshold.
For any query related to VAT in Sharjah Medical District, Sharjah, call us today and get the most trustworthy answer.
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VAT is an indirect tax that is applied upon the consumption of goods and services, and is levied from VAT registered businesses that supply the goods and services during the process of their businesses. It is levied at every stage of the supply process and different businesses collect it in order to pay it to the government. It is the consumer that incurs and pays the VAT eventually.
Businesses have to register themselves as per the criteria laid down by the Federal Tax Authority. It is mandatory for the businesses to register themselves if their annual turnover exceeds AED 375,000 and this threshold must have been exceeded in the last 12 months.
The businesses that don’t meet the mandatory threshold criteria can opt for voluntary registration I.e. if the annual turnover exceeds AED 187,500 but is below AED 375,000 and this threshold is expected to be exceeded in next 30 days and In last 12 month duration, the taxable expenditure exceeds the worth of voluntary registration threshold. Upon registration, the businesses will be issued a VAT registration number, which will be mentioned on tax invoices etc.
VAT will be implemented from 1st January’ 2018 in UAE. And all the businesses falling with in the territory of UAE has to register their entity before the mentioned date of implementation. VAT registration process has started with effect from 1st October, 2017.
With effect from 1st January 2018, a standard rate of 5% will be charged on the taxable goods across UAE. And it won’t be charged on non-taxable goods and services that includes Health, education, and local transport etc.
Yes, the non-residents are liable to register for VAT if they make taxable supplies, until the presence of any UAE resident, responsible for VAT accounting of such supplies. The exemption will require, for example, when a business of UAE is required to account for VAT under a reverse charge mechanism for the purchases from any non-resident.
As per the VAT law of UAE, the non-compliance will invite penalties. Moreover, there will be a constant risk of losing confidence among the customer base of businesses and given the incompliant nature of the business methodology, it will lose its legal status and thus, is bound to fall.
Businesses dealing with exempted supplies will not be able to charge from their customers. Similarly, the purchases on which the VAT has been incurred cannot be claimed. Businesses with partially exempted supplies can register for VAT and can claim for the VAT incurred on the taxable supplies.