As the VAT got implemented in the UAE, so many confusions have also arisen with it. So many people are confused regarding different liabilities
When do the consumers have to pay VAT in UAE?
As we all know that the implementation of VAT has taken place on 1 January 2018 so, if the consumer has received anything exclusive of the taxes after the implementation of it, they will have to pay VAT for it.
The implementation of VAT took place on 1 January 2018. If anyone will buy anything exclusive of the taxes and will not pay tax on anything, he will have to pay VAT on it. Other consumers who do not buy goods exclusive of the taxes, they do not have to pay VAT at all. This is because the product they buy will already have the VAT included in it. This is why they do not need not pay it again.
Two cases in which suppliers have to pay VAT
- If the contract of the supplier states that a person who receives the number of his goods are all inclusive of the VAT, he will be liable to the VAT in Dubai UAE.
- If the contract that has been issued of the consumer doesn’t mention the VAT.
In both of these conditions, the VAT is to be paid. All this has been said by the FTA who takes the VAT from the masses and keeps accounts of it as well.
The total amount that has been made mandatory for the purpose of the VAT is actually 5 percent. This is to be given by each and every person who is accountable and his earnings are crossing a threshold limit for VAT.
If someone will try to avoid it, he will be held accountable and will have to pay fines and face punishments as well.
What would I suggest?
Avoiding VAT will be of no use to anyone. no matter what you do and what kind of a business you run, you must pay VAT on all the goods and services not only as a dealer but also as a consumer.
It is your responsibility
It is the responsibility of the citizens of UAE to pay taxes on time without trying to escape it in any way. if they consider themselves respectable citizens of the UAE, they must not run away from the tax at all.
Paying 5 percent of the tax to the government is no big deal for the people who run businesses. It is not a very big amount. It is being taken by only those people who are able to afford it. It has not been brought as a burden but it has been implemented for the welfare of UAE.
Do people have to pay VAT on their personal incomes?
No. nobody has to pay VAT on their personal incomes. Only businesses and the consumers have to pay VAT.
If you still have further queries regarding VAT registration in UAE, you can visit the website of FTA to make yourself clear about it.