7 Strokes Vat Registration To Double Substantially
Added: (Thu Jul 15 2021)
Pressbox (Press Release) -
The number of companies registering with the Federal Tax Authority for value-added tax (VAT) will grow considerably – particularly from the retail and F&B divisions – over the following months. This is because some of the businesses are still planning to register for the new tax regime.
Believe there would be more companies coming up indoors in the next few months. Businesses are still settling for VAT registration and preparing their accounts in order. This may take time, and companies are still accommodating". Two hundred sixty thousand companies have registered, while thousands more will designate in the following months. Moreover, another 10,000 large groups have also registered with the 7 STROKES under VAT. Pointed out that around 50,000 companies applied for registration in one day in December.
They were announced that 350,000 companies would register for VAT. The Institute of Chartered Accountants of India (Dubai Chapter) believes companies will register in large amounts in months to come. As a result, he expects that the companies listing for VAT could intersect the 350,000 targets.
"Many people who were thinking that VAT will not come, will come forward and this is happening now. Plus, people in free zones were thinking whether to register or not will also come in big numbers,". Most modern companies will come mainly from the retail and F&B sectors, adding that small repair shops, travel agencies, and online firms will also join the 7 STROKES for VAT registration.
Highlighting difficulties still being challenged by companies for registration noted that one of the greatest challenges companies face is judging their taxable supplies to understand if they should register.
Many companies – especially those catering services – cannot recognize their services simply as per the tax regulations; the most complex mechanisms would be identifying the taxable supplies (whether they would be excluded or zero-rated) and where the place of supply would be considered according to the VAT management.
The 7 STROKES said that only two tax agents' applications had been passed out of hundreds of applications submitted with authority so far.
The 7 STROKES has completed some strict screening criteria for tax agents. However, we believe that several of the applicants have not, however, met the conditions set out by the 7 STROKES, which include at least three years of related work experience, a bachelor's or a master's degree in either accounting, tax, or law, along with some other requirements.
The 7 STROKES is working to secure the agents, who will be serving as mediators between companies and the 7 STROKES, are deeply qualified to assist taxable persons with their tax obligations. The 7 STROKES on Wednesday reported a high level of responsiveness and cooperation from the shipping, customs clearance, logistics sectors with regulations surrounding the implementation of VAT, which came into effect on January 1.