What businesses should do before registering for VAT in the UAE?
Implant VAT in your business plan
A value-added tax is a flat tax imposed on an item. It is similar in some respects to a sales tax, except that with a sales tax, the full amount owed to the government is paid by the consumer at the point of sale. With a value-added tax portions of the tax amount are paid by different parties to a transaction.
Start-ups and newly established businesses must implant the value-added tax into their business plan, policies, strategies, and processes. It is essential that they well understand the implications of the value-added tax and make every effort to align their business model to the Federal Tax Authority (FTA) compliance requirements.
When do I have to register for VAT?
A natural person means the individual or a legal person means a company conducting business in the UAE will have to register for value-added tax if their taxable revenues exceed AED 375,000 over the previous 12 months.
Bookkeeping is essential for businesses to calculate the value-added tax
(VAT) registration threshold, and it is required by value-added tax regulations even if your business is not yet registered for tax.