VAT stands for value added tax and it is a tax that is deducted on the value added to a product. It is being applied since the 1st of January, 2018 and all products and services have been affected by the tax except education, health care and food items. Normally, the end user is affected by the introduction of VAT however, keeping in mind the price elasticity demand and supply forces of the market, business have to make certain changes as well to meet the legal requirements.
For every entity with a trade license Dubai and revenue of over AED 375,000 annually, registration for VAT is necessary through online form submission. This has to be done within 30 days of being required to register with the authorities. However, if the annual revenue is less than AED 375,000 or more than AED 187,500 the registration will be voluntary or optional.