The UAE enjoyed a long period of tax exemption, but the impact of the global market made it necessary to implement a tax system in 2018. VAT was one of the taxes that was levied on the sale of commodities. To help the domestic suppliers, this tax is also levied on imported goods and services. Due to the fact that VAT is levied on both goods and services across the supply chain, the UAE now requires VAT registration more than ever. Manufacturers and merchants must register for VAT in UAE in order to abide by the new tax law. While some providers are required to register, others choose to do so voluntarily.
The Requirements for VAT Registration in Dubai and the UAE:
Businesses having taxable
supplies and imports above
AED 375,000
Mandated to apply for VAT
registration
Businesses having taxable
supplies and imports between
AED 187,500 & AED 375,000
Can voluntarily apply for VAT
registration
Businesses having taxable
supplies and imports less than
AED 187,500
Not required to apply for VAT
registration
Importance of VAT registration in UAE
At Nair and Nelliyatt, we distinguish ourselves from the rest by delivering effective VAT assistance to our clients. Our qualified VAT consultants examine our client’s needs and recommend suitable solutions in addition to educating them on how to deal with present and future challenges.