Description: VAT is calculated on your total sales value. Okay! You knew that, but what you might not know is that the threshold of AED 187500.00 can be matched by taxable expenses as well, there are two types of supplies/sales, one is taxable and the other is exempt. Now remember,while calculating the threshold we can ONLY take into account the taxable supplies/sales, yes it is compulsory to register once your taxable supplies/sales crosses the threshold of AED 375000.00 but, you have to apply for registration within 30 days or else you may get a fine of AED 20000.00,if the FTA randomly visits your office to check your records and if it is not in order who do you think will be held responsible? “Not the Accountant OR any employee” but the owner of the company.
Tag: VAT Registration in UAE.