VAT Full Form: Value Added Taxes
Introduction of VAT Full Form :
The introduction of VAT will significantly change business accounting operations. Today will explain the basis VAT and it impacts on business and consumers.
Definition of VAT Full Form :
VAT full form: VAT would be charged the standard rate of 5%. There are positive supplies and services which can subject to zero rates or under exempt categories.
The VAT is a tax on the consumer goods and services, levied at the point of supply, and is not planned to be a tax on business.
1. Compulsory registration for turnover over AED 375,000. Voluntary register for revenue over AED 187,000
2. Registration opens from Oct 1 2017 and the deadline is DEC 31st 2017. Voluntary early registration allowed from July 1st, 2017.
VAT Registration: Turnover Calculation
For the purposes of Voluntary VAT Registration :
Only taxable supplies are counted.
A person may be taken into account taxable supplies or expenses which were subject to the VAT threshold.
VAT Rates / VAT Full Form:
The VAT rate is 5% for most goods and services except for these exempted or 0% tax categories.
Certain education and healthcare supplies.
Goods and services exported outside the GCC.
Certain investment grade precious metals (eg: gold and silver of 99% purity).
VAT Exempt / VAT Full Form:
Certain financial services.
Need for bookkeeping :
The VAT rule will lead to the most important changes in business account preservation. Businesses that get together the minimum annual turnover requirement must register for VAT. Businesses not registered for VAT full form should maintain its financial records in any event, in case the government needs to establish whether they should be registered.
The receipt of a valid tax invoice is the primary documentary evidence to support the purchases VAT full form recovery.
The valid tax invoice should include the following information :
A unique sequential number
The date of issue.
The supplier name, address, and Tax Registration Number (TRN)
The customer name, address, and Tax Registration Number (TRN)
Description of goods or services supplied.
Total amount excluding VAT
Total VAT Chargeable.
Price and quantity for each item.
Rate of discount per item.
The Rate of the VAT charges each item, if an item is exempt or zero-rated, then declare there is no VAT on these items.
The total amount including VAT.
These steps to identify if VAT is applicable :
Place of supply of Goods
Place of supply of services
Date of supply of Goods
Date of Supply of Services
Taxable Supply: A supply of goods or services for consideration but a person conducting business in the State. Supply can be either under zero percent or at the standard rate of 5% deemed supply and does not include exempt supplies.
Conclusion Of VAT Full Form:
I hope you understand VAT full form and definition of value-added taxes and further if you want to know another full form like Google Full-Form please through.