When should you register for VAT? Voluntary & Mandatory Threshold | FTA Portal | UAE Startup | Tax
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- เผยแพร่เมื่อ 2 ส.ค. 2024
- Many startups get caught up in the growth phase (and rightly so), but forget about tax compliance. Read ahead to be on top of your UAE VAT Registration.
As a startup, you need to make sure that you register for VAT on time because:
1) You need to meet the compliance requirements of the UAE.
2) It will give you the opportunity to claim most of the input VAT on your expenses, which will help you save money.
3) The penalties for late registration are hefty.
Time Stamp
0:00 Intro
0:26 Importance of registering for VAT on time
0:44 What does the law say about registering for VAT in UAE
1:44 When we recommend you should register for VAT in UAE
2:18 Outro
To read in more detail click here -
www.msiauditors.com/when-to-c...
In this video, we will discuss what the law states and our recommendation.
#VATexplained #vatregistration #startup #entrepreneur #vatbusiness
To have a quick free consultation you can get in touch with us at +971 4 2651383 or +971 55 6460108, during our office hours. Alternatively, you can get in touch with us at solutions@msiauditors.com
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We are one of the oldest audit firm based out of UAE, with over 30 years' experience. We are experts in Audit, Accounting, Taxation & Consultancy related services. Get in touch with us for more professional advice on your company's VAT compliance requirements in UAE.
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Matey, loving the additions to your set up.
Thank you! We are hoping to provide better value to the viewers.
- MSI Team
Outstanding presentation.. Great job sir
Thank you, Naushad for your kind words.
Are you a startup in UAE, and figuring out when to register for VAT in UAE? If you need any help comment below
Sir we have a maintainance company started last June and we have meet the threshold with non taxable invoice how could we register for TRN
Good day! thanks for the lovely video, can you please explain, how to treat those invoices prior to meet the threshold and when we required to start tax invoices. In our scenario, we just crossed the voluntary threshold now during March 2021 which we started business in End of Dec 2020 and we are expecting to reach the mandatory threshold by May 2021?
That is a good question.
You have to start raising tax invoices once you are registered for VAT and get granted a TRN certificate.
Hope this solves your query.
-MSI Team
Dear thank you for lovely video..
we start up new business recently. My question is " until we get the VAT certificate after cross the threshold, we have to clam VAT from our customer or NO?
Please help..
You should not charge VAT until you are registered for VAT and have a TRN Certificate.
hi, i am startup company my thereshold level is not gonna reach atleast for next 6 months, can i carry my sales without TRN number?
Yes, this is absolutely fine.
Hi , do we require to register for VAT if our import of services exceed AED 375,000 ? And our taxable supplies are Nil ?
Yes.
Thanks for the prompt response
@@muhammadabubaker3463 You are welcome.
My company is registered a week ago. But my customers don’t accept do business with the companies those who are not registered VAT. But within a week of time i can’t show voluntary sales amount in the turnover declaration form that requires to submit FTA.what can i do in this?
This is a very commonly asked question. you will not be able to register till you reach the threshold.
You need to communicate with your customers that you are a start-up and give them a written confirmation, that you will register for VAT as soon as you cross the threshold.
-MSI Team
Can you please Help me sir . Our company not start yet .But We need to VAT certificate. but they asking To Turn over option .What will i do there ?
I Expected Favour Reply
Thank you for your question. How much sales do you expect over the next 30 days?
-MSI Auditors
Sir my company started on may 2022. By end of this 30 June 2022 we are expecting to cross 40000. So what date should I put as the registration date ?
With AED 40,000 in taxable income, it is not sufficient income to cross the registration threshold.
This is not sufficient information to decide the date of registration.
quick question; I am running a software dev company I generate revenue from my apps. I don't sell any tangible goods nor issue VAT receipts. If I am expecting to cross the threshold of 187,500 in the next 30 days. Should I still register for VAT?
We recommend you register after you cross the voluntary threshold.
Hi friend, is it only sales that matters? I heard for a startup even if the taxable purchase crosses 3,75,000, they can register for vat?please enlighten
If your sales + import crosses 375K you must register
If your sales + Imports + taxable purchases cross 187.5K then you may register.
Hope this is useful to you. Feel free to get in touch with us to better look into your registration requirements.
-MSI Team
Ok. So basically we can say that taxable local purchases exceeds 375k threshold then we cannot register? It all depend upon sales and imports when it comes to mandatory threshold.
@@abrarhere4866 You can register for VAT if you have taxable expenses crossing 375K, in such a case you can use the voluntary option.
Sir, I have 3 Companies (Single ownership). First one 375,000 exceeded, second one taxable purchase exceeded (input)187,500 last one is below 187,500. Can I register 3 companies at the same time under group registration?. OR should I apply to the first company for normal registration and wait for others to exceed the limit to add under the group?
We have discussed this in another video.
th-cam.com/video/xUvoMsD4J8k/w-d-xo.html
You would need to register all three companies under one TRN.
@@MSIAuditors Thank you
Can you give a chance to work with you if you are doing Vat registration process plz
Yes, we do VAT registration for our clients.
Are you asking to work with us on VAT projects? If so we are not currently hiring. Pls, send your CV to hr@msiauditors.com for our future reference.
What about free zone start ups
The concept is the same. the only difference here is to see if the transactions of free zone company is outside the scope of VAT or not.
Sir, We are a start up company. When to register for VAT in UAE. But for our import purpose, everyone asks VAT number. Please give us reply.
You can register for VAT when you meet the registration threshold as mentioned in the video.
For all parties asking for your TRN, you can inform them you are not registered since you have not met the threshold and will share the certificate once the registration threshold is met and the process is completed.
-MSI Team
Sir, iam facing the same issue; unable to take my container out due to pending VAT; can you guide me through. How do check my VAT status?
Hi Sir,
We are newly open business in Dubai. The company open last Jan 2022.so our revenue for last 4month AED 75,000. Can we register for vat under voluntary catogery?kindly advice me
With this turnover, it is not possible to register for VAT.
-MSI team
@@MSIAuditors highly appreciated your prompt response
@@nayanarathnayake9254 You are welcome. We are happy to be of assistance.
you just memorized the articles from the UAE tax website !!!! you could make more examples !!! not useful at all
It is unfortunate that you did not find this content useful. We will try to add more examples in our future videos.