Companies who are involved in the selling of products that get sold quickly and have a low cost relatively are referred to as Fast-Moving Consumer Goods (FMCG). These goods include the non-durable goods which have comparatively less shelf value like packaged foods, cold drinks, toiletries and more.
Due to the implementation of VAT in UAE, it has been mandatory for all the businesses to get registered under VAT. Company types have also been mentioned which need to be registered on time. If not, the companies will have to pay heavy fines.
FMCG company and VAT
In Fast-Moving Consumer Goods (FMCG) food especially the packaged food and other food and consumer goods come. As per the UAE law for VAT, it has been mandatory for the companies to pay VAT for all types of foods in the UAE. The food types include the bread, rice and staple food as well.
There are a lot of items that have been exempted from tax but that’s not the case with the food items in UAE. The director general of federal tax authority has told us that food would not be zero-rated in UAE and people would have to pay tax in order to buy food and have it.
There has been a proper list formulated in order to show the names of the items which are exempted from VAT and which are zero-rated. Food is so not on the list of zero-rated items which makes it clear that VAT on food is not at all zero-rated.
From January 2018, the VAT is mandatory and will be levied at a rate of 5%. As it is not a very huge percentage that will be charged form the people, the changes in the amounts won’t are too huge. This means there is nothing you should worry about regarding VAT in UAE.
All you need to worry about is fines and penalties that you would be charged if you do not register for VAT on time. The penalties and fines are huge and the companies would really not want to pay them. Those who are not very well aware of these fines and penalties should immediately take the assistance of VAT Return filing services experts know the rules and regulations for VAT registration. Also, they are very well aware of the legal procedures to get registered for VAT. One of such services is farahatco.com.
VAT fines and penalties can harm the image and reputation of the companies. That is why they should register on time. If the time of registration has already passed and you have been imposed with fines, you should take the help of VAT experts. They will make you take the wisest decision while staying in the legal boundaries.
Register for VAT because the food industry has not been exempted from tax and in case of any problem, feel free to ask the VAT experts for help. They will let you know in which cases do you become eligible for VAT registration in UAE and whether you should register or not.