Everything You Need to Know About VAT Registration and Filing in UAE
VAT registration and filing in UAE are critical for businesses to comply with the tax system introduced on January 1, 2018. The 5% VAT applies to the supply of goods and services, with the end-consumer bearing the tax cost. VAT-registered businesses can reclaim the tax paid on purchases, reducing their overall tax burden. Non-registered businesses must still pay VAT but cannot reclaim it, impacting their profitability. Applying for a Tax Registration Number (TRN) before crossing the threshold is vital to avoid penalties. Accurate VAT filing, maintaining transaction records, and timely submission to the Federal Tax Authority (FTA) are essential for compliance and business efficiency.