VAT has become a common term for businessmen and entrepreneurs since it was implemented in the UAE on January 1, 2018. All business entities have to register with VAT if their turnover exceeds AED 375,000 annually.
VAT is an indirect tax imposed on goods and services which is collected at each stage of the distribution process on nearly all goods and services that are bought and sold. It’s the most common type of consumption tax found around the world, with over 160 countries implementing VAT.
Value Added Tax has also become popular because it creates a significant portion of income for the economy and it is much easier to manage, compared to other taxes. Therefore, to ensure that all matters related to VAT are taken care of, most companies look to providers of VAT services for assistance.