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What Are the Benefits Of Registering For VAT

 Many small businesses do not register for VAT (Value added Tax) as it is not necessary. However, it is important to understand that VAT is something that needs attention. Especially, in case you are sure that taxable supplies turnover of business would hit the existing threshold. Understand that the process would be a nightmare in case you do not take the help of a VAT specialist. 

Being a small business owner, you could enjoy numerous benefits with the VAT registration that makes the entire process worth considering

VAT Registration

  • Business Would Get VAT Refunds

In case you are buying lots of goods for your business, you would wish to claim the VAT back by end of each fiscal year. In case the business is registered for VAT with FTA (Federal Tax Authority), you would be able to do that. Nothing could be better than FTA providing refunds to the money. It is worth noting that the businesses that undergo voluntary VAT registration are allowed to get VAT refunds from the past six months.

In case you are doing business for the last six months; however, you have not reached the threshold yet, you could reclaim the VAT as you have kept records and invoices. Remember the VAT return filing needs to be done with the VAT specialist’s help and FTA needs to be notified regarding changes to key information related to business like an address. 

  • Get the TRN (Tax Registration Number)

TRN is provided after VAT registration. It provides confidence to clients as well as customers while dealing with small businesses. It is important to note that each invoice has the TRN that provides a successful image of the business.

It is because most people know that VAT registration needs this for passing mandatory or voluntary registration threshold. In case you run a small business and considering the mandatory or voluntary VAT registration, it is advised to consult VAT specialists or accountants in Dubai for guidance in the process. 

  • Elimination of Concern About Reaching VAT Threshold

Several small businesses exceed the existing obligatory VAT registration threshold unknowingly. In case this happens and the FTA finds it out, the business not being registered could get into numerous troubles. Registering voluntarily for VAT would allow you to eliminate the fear of ending up with a penalty or fine from the FTA.

  • Compete With Industry’s Major Players

The owners of the start-ups wish their business to grow as well as become well-established in the industry. One of the best ways of developing a steady as well as loyal client base is by appearing to be big. When you appear competent in competing with the industry’s major players it becomes easy to develop the client base. 

Moreover, with the help of voluntary VAT registration, your start-up business could go up. You could have an edge over the small businesses that are registered for the VAT.

  • Open New Opportunities for Business

Most businesses, especially the established ones would hesitate to work with the start-ups unless that start-up is registered for VAT. It is important to understand that in case a business is unable to issue the proper invoice, it tends to lose potential clients. And, it is not a good sign for small businesses, especially the growing ones. Therefore, it is crucial to get VAT registered. 

Doing so would provide confidence to clients that they are working with a serious as well as a reputable business. You could get in touch with experienced accountants in Dubai to understand the process and get registered.   


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