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VAT Guide

A full suite of services from bookkeeping to CFO in one scalable plan

Useful tips for VAT registration

Seek a professional consultation

We strongly recommend that you seek a professional consultation from a Tax Agent to help you with the tax registration. I have seen many cases of adverse implications due to wrong applications like miscalculation of the registration threshold (quite common), missing the deadline of registration, and failing to understand the different of choices, which results in delayed approval.

If you need to do it yourself, please read FTA’s detailed guide (REGISTRATION, AMENDMENTS & DEREGISTRATION).

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Provide true information

Do not overstate revenues or expenses for the sake of getting the Tax registration Number (TRN). This is illegal practice that could be easily detected later in any compliance check or tax audit conducted by the FTA where you will be required to provide supporting documents and bank statements.

Do good bookkeeping

Maintain your accounting records and all supporting documentations. This will help you to assess your registration threshold at end of each month (a historical test for the last 12 months). Bookkeeping will organize your records to taxable, non-taxable, exempt, zero-rated and so on. It will also help you if you are eligible to recover any VAT paid on purchases prior to the VAT registration.

Get prepared to charge VAT and file your returns

Once your application is approved by the FTA, you have to account for VAT starting from the effective date of registration as shown in your TRN certificate.

Accounting for VAT includes charging VAT by issuing correct tax invoices, keep track of VAT paid on expenses, and have a suitable system to help you generate a VAT return report. Simply you must know your all tax obligations.