From registration perspective:
If a person has made taxable supplies with a value exceeding the Mandatory Registration Threshold over the previous 12 months,
- Application for registration to be made within 30 days
The primary condition for registration is exceeding the mandatory threshold limit over 12 months. The words used are 12 months and not financial year. Therefore, this condition will be checked at the end of every month.
Further, the law also states that if a person anticipates making taxable supplies of value exceeding the mandatory registration requirement in next 30 days
- the person shall make application to FTA for registration.
In this, it becomes necessary to maintain proper books of accounts to check the registration requirement.
From voluntary registration perspective:
the total value of the person’s
- taxable supplies and imports,
- or their expenses which were subject to VAT,
in the previous 12 months exceeds the Voluntary Registration Threshold of AED 187,500;
The person expects taxable supplies and imports or expenses which are subject to VAT, in the next 30 days to exceed the voluntary registration threshold.
For Voluntary registration as well requirement of monthly calculation of the value of taxable supplies and expense incurred have to be considered, Further, only vatable expenses will be considered, making it important to have proper accounts in place to book expenses under proper heads.
From deregistration perspective:
The taxable person no longer makes taxable supplies and does not intend to make any taxable supplies in the next 12 months; The requirement for deregistration is also to be checked on a monthly basis, making it necessary to maintain proper records.
The value of the taxable person’s taxable supplies or taxable expenses over the previous 12month period is less than the Voluntary Registration Threshold and the taxable person does not anticipate making taxable supplies or incur taxable expenses in excess of the Voluntary Registration Threshold in the next 30 days.
Since the conditions have to be checked at the end of every month, it becomes necessary to maintain detailed books of accounts to avoid violation of provisions relating to VAT laws.
The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn't constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn't accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information's provided herein above.