Top Three Benefits of Registering your Business for VAT


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Value-added taxes are one of the taxes levied by the governments of various countries. These include the UK, US, and GCC countries. While businesses fin it to be a burden, they must look deeper to find what VAT registration holds for them. Merely registering for VAT has a considerable amount of benefits to offer for even business of small scale.

Top Three Benefits of Registering your Business for VAT

How is VAT calculated?

Value-added tax, as the name indicates, is a tax, which a business pays to the governments a product or an article passes through another stage of the supply chain. Since after every stage, the product or the service stand more refined, there’s an added value. Now the bussiness owes a certain percentage if that added value to the government.

This article aims to shed light on the benefits of registering for VAT for businesses.

3 Benefits of VAT registration for all businesses

The VAT is a regulation imposed by governments. Like all regulations, it has its own pros and cons for businesses. But since it is a regulation, you have to comply with it. If you are in a country like the UAE, the VAT registration process is an easy one. You just need to visit the Federal agency’s website and fill the online form.

When you decide to get your business registered for VAT, you will need professional VAT services to go through the process risk-free. Thus, get in touch with one of the best VAT consultancy in Dubai for safe VAT registration and compliance. Your business will reap the following benefits in the meanwhile:

1. Reclaims from the Past

VAT registration gives you a chance to claim the items that you have been using over the past years. You can reclaim VAT tax if your company is making supplies that are taxable and thus qualify for VAT reclaim. But in every country, there are certain goods and supplies which are exempt from VAT.

In case your company is producing or supplying those goods and services, you cannot reclaim VAT for the past years.

2. VAT refunds

You can ask for VAT refunds for purchases that you make for business purposes. All the goods and services that your business buys are included in the refundable entities. Since your business is also receiving VAT in varied forms. Now, these refunds will balance the payments out with what you have been charging.

If you invest in equipment of a larger extent over the year, for instance, that of IT machinery, you may be able to claim a bigger amount of VAT refund.

3. Business image and credibility

When your organization registers for VAT, you receive a VAT registration number. This number stands for your company as a token of credibility. It makes your organization more reliable and one that complies with the regulations of the land.

Secondly, VAT thresholds are normally familiar to people. So when you present your company’s VAT number at the time of business dealings, your company appears bigger than it actually is. It also invites more investors and clients.

Looking forward to registering for VAT?

The VAT has numerous benefits. The ones mentioned above are only related to registration. When you implement the VAT and comply with the regulation in its essence, your business sees many more benefits. Whether you are in the UAE or in the GCC, you need to comply with the VAT regulations, if your annual revenue exceeds the designated threshold.

If you are in the UAE, the annual revenue threshold for VAT eligibility is AED 157,000. If your revenue exceeds this amount for a given year, you need to register for VAT. When you do, you will need professional help of VAT experts to ensure secure VAT compliance.

You have many VAT experts around you. You can easily get in touch with one of the Best VAT consultancy in Dubai to make the most of those benefits. Besides these benefits, compliance is tricky, and if you do not seek professionals, chances are very high that you may fall into pits of penalties.

For VAT compliance, your business records and practices will need accuracy in representation. You cannot achieve that without the help of VAT experts. Thus hire professionals for safe compliance with the regulations.


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