There are four major advantages to being Vat Registration In UAE that small businesses can willingly enjoy. At present, UAE based agencies only need to sign up for VAT if their revenue is £83,000 or more throughout year.
The Government taxes VAT (Value Added Tax) against goods and services within the UAE. The existing VAT rate is benchmark 20%, lower rate 5%, and zero rates 0%.
The standard charge of VAT will be valid to most goods and services retailed. The decreased rate will apply to businesses like children’s car seats and energy service providers. Zero rates will use to food and children’s clothes.
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Thus, if you are running a small business, how can you get advantage from being VAT registered?
You get a VAT registration number
This might not look too thrilling, but your business can benefit from showing your VAT registration number on all your papers, website, and stationery. Vat Registration In UAE This can increase reliability to your business and provide you a more dependable and professional picture.
You can claim VAT refunds
Once registration done, you can get back for VAT on all goods and services your business purchases. This should be balanced with what your business is charging and obtaining in VAT payments over the year. If you have spent lots of bucks in equipment, plant, apparatus or IT, you can easily recover a huge amount of VAT.
When it is best time to submit your VAT return, you can find that the HMRC sends you some money for a transform!
You can improve your business image
If you are running a new small business, another advantage to being VAT registered is that many individuals are attentive of the VAT threshold. You then come out to your prospective customers that you are larger than you actually are by showing your VAT number.
Also Read : – Vat Return Filing In UAE
This can also assist you when it comes to managing other businesses. Some businesses choose it if you can increase a suitable VAT invoice.