• VAT saving
A big advantage of voluntary value-added tax registration is the ability to claim VAT on goods and services purchased for your business, which is a 5% saving on taxable purchases. In addition, you can reclaim VAT incurred before the registration on inventory and assets, provided that they exist on the date of registration.
• Boost your business profile
Boosting your business profile gives the impression that your business is bigger and more successful.
• Banks & suppliers approvals
The Tax registration number (TRN) could be required by banks or large suppliers as part of their Know Your Customer ( KYC) process. Many organizations are not willing to deal with companies that aren’t value-added tax registered.
• Avoid late registration penalties:
If you don’t keep a careful eye on your turnover then you might not notice when it reaches the value-added tax mandatory registration point. Many businesses fail to register on time as they have only 30 days to apply after reaching the point and end up suffering a late registration penalty of AED 20,000. You can simply register voluntarily to avoid any complications.