To run operations smoothly and efficiently, businesses have to pay taxes to the government as per the tax regime in the country. This promotes transparency in business and acts as evidence in circumstances when tax audits are carried out. VAT payments prove that businesses are running legally and no misconduct is carried out, promoting credibility. For paying taxes, every business eligible under the scheme is issued a special number, i.e. Tax Registration Number or TRN. In UAE where a new tax scheme has been implemented recently, business owners who have their taxable supplies and exports exceeding AED 375,000 per annum ought to apply for VAT registration, after which they will be allotted a 15 digit TRN.
If the business owners fail to submit the collected tax before the end period, a penalty of AD 10,000 will be levied. Another default will invite a hefty sum of AED 50,000 in the name of the business owner.
As new tax scheme is making owner anxious few perks of VAT registration and accounting from renowned auditing organizations such as NSKT Global are as follows:
Acts a perfect source for financial calculations in views of the expansion.
Ensures every tax-related document is submitted.
Through VAT, chances of tax audits are minimized.
Reduces chances of incurring penalties.
With the expertise of NSKT Global, VAT registration and accounting for businesses becomes easier and comprehensible.