Criteria for VAT Mandatory Registration

Criteria for VAT Mandatory Registration The GCC VAT Agreement has put in place certain regulations that businesses must adhere to avoid penalties and ensure smooth operations. If your business has had a taxable turnover of AED 375,000 or more (USD 100,000 or more) in the past 12 months or is expected to cross that threshold in the next 30 days, the business must apply for registration. Failure to do so will result in hefty late registration penalties of AED 20,000. Ensure that your business stays compliant with the regulations and avoids any unnecessary financial setbacks. 

Mandatory Registration

• AED 375,000 taxable revenue in the last 12 months; or
• AED 375,000 confirmed taxable revenue in the next 30 days
• Apply with FTA for Tax Registration Number (TRN)

Here is the link you can register your VAT with the Federal Tax Authority

Learn about the post, Overview of the UAE Taxation System

Conclusion

In conclusion, VAT mandatory registration is a crucial aspect of any business that falls within the threshold. It not only ensures compliance with the law but also enables businesses to claim back input VAT, which can significantly impact their bottom line.

It is important to note that failure to comply with the registration requirements can result in hefty fines and penalties. Therefore, businesses must stay informed about the VAT regulations and seek the necessary guidance to avoid any legal issues.

Overall, VAT mandatory registration is a necessary step toward building a successful and sustainable business, and it should not be taken lightly.