VAT means Value Added Tax, this is a kind of tax which is payable by each person in the country who is buying any product. Even small and big businesses have to pay taxes as well. The term VAT is introduced a few years before and that has proven to be very beneficial for the people and the government as well. It was estimated that in 2019 in UAE there was more than 80 million AED generated and most of this tax was used in reducing hospital bills and providing cheap education and a huge number of buildings were also constructed where people could use them as apartments and offices at cheap rents.
If you are doing a regular job then you don’t need to get yourself registered as a VAT payer but if you are doing business then you have to register yourself as a VAT payer. Because you will be paying more than the usual VAT amount and you will need to get your VAT registration number as well. This is important because this will rank your company and business as well because the more you pay means that your company is doing a good business and your company’s services will be rendered by the locals more and this will make different investors visit your company as well.
If you are running a business of milk industry, just for instance, and you need to buy different refinery machines and with that you will also need to buy different IT machines to keep the track as well. You will buy these machines from anther country which means that you will import them and the good news is that VAT is exempted for businesses if they important and export things. But if they pay, and they have the VAT registration number, they can reclaim their VAT funds at any time they want. But you have to keep the invoices to claim for this money or you can say refund. But if you lost these invoices, it will take a lot of time and procedure to get the refund and even at times, it maybe impossible if there is no record. To prevent from these unfortunate events, you need to hire a VAT consultant and if you are looking for the best then hire VAT consultants in Abu Dhabi. Go now to this link to see latest news of VAT and its rules.