VAT Registration | Why You Need to Register Your Business for VAT ?
1. What is VAT? VAT is a tax collected on the sale of goods or services. VAT is also applicable on import of goods and services in many countries. The amount of VAT payment is after deducting Input VAT which is paid by the business while purchasing goods and services for the purpose of business. Each country has its own administrative authority for VAT. In the UAE, Federal Tax Authority is the administrative authority while in the UK VAT is managed by HM Revenue and Custom. 2. When should one register for VAT? Mandatory Registration: In some cases, VAT registration is mandatory for businesses. This is generally triggered upon reaching a certain revenue threshold. In the UAE this threshold is when your turnover in any of the past 12 months exceeds or is likely to exceed (in next 30 days) AED 375,000 and in the UK £85,000. Voluntary Registration: You can also register for VAT on a voluntary basis at any point up until your turnover reaches Mandatory Turnover threshold in the U