VAT Registration in Dubai, UAE

Value Added Tax (VAT), an indirect tax levied on the consumption of goods and services has been adopted as a system by almost 160 countries globally. This tax serves as another segment for revenue generation for the Government. Having realized this, the GCC countries have recently registered themselves under VAT law and implemented it by 1st Jan 2018 with 5% as the VAT rate. The Middle-East country, UAE is one of the most dynamic countries of the world. The Emirates have got several zones that have been considered as a business free-tax zone that became the center of investment for foreign investors. If your business is registered under VAT law, it signifies that it holds recognition in the eyes of the government. Ensuring VAT registration holds immense significance..

If you own a business in UAE or intend to establish your business presence in the Emirates, whether it’s small, medium, or large, you must register your business under VAT law. Before delving into the process, let’s examine the entities obligated to register for VAT, the significance of VAT, and then proceed to discuss the registration process along with other crucial documents and information.

Registration of business entities for VAT depends on the income generated by the business. The slab for entities who will become responsible for VAT Registration are:

Businesses having taxable supplies and imports above AED 375,000Mandated to apply for VAT registration
Businesses having taxable supplies and imports between AED 187,500 and 375,000Can voluntarily apply for VAT registration
Businesses having taxable supplies and imports less than AED 187,500Not required to apply for VAT registration
      • Boosts the business profile
      • Averts financial penalties
      • One may claim for VAT refunds
      • Helps to grab a mass market

To initiate VAT registration in UAE, one must fill the VAT Registration form online and submit the essential documents required along with the form in order to attain VAT Number. The entire registration process takes place on an online platform. Let’s have a look at the documents.

Documents for VAT Registration in UAE

      • Copy of trade license
      • Passport copy of business owner and partners
      • Copy of Emirates ID held by owner and partners
      • Memorandum of Association (MOA) of the company
      • Company contact details
      • Bank account details
      • The income statement for the last 12 months
      • Nature of business and activities performed

UAE, VAT Registration Online

The online registration for VAT in UAE can be done through the VAT registration portal available on the website of www.tax.gov.ae. The steps to be considered while doing an online registration involves filing:

      • About the Applicant
      • Details of the Applicant
      • Contact Details
      • Banking Details
      • Business Relationship (optional)
      • About the VAT Registration
      • Declaration
      • Review and Submit

Once the application is submitted, the FTA will review the information and documents submitted, and if everything is found to be satisfactory, the application will be approved, and a Tax Registration Number (TRN) will be allotted.

The VAT Certificate confirms that a business entity has registered under the VAT law for tax collection at every step of product development. After completing the VAT registration process, the Ministry of Finance issues this certificate, assigning a unique number to each registered business entity. The “VAT certification” certificate provides proof that business entities are registered under the UAE Tax Law and assures recognition by the Government of Emirates.

Contents of VAT Certificate

      • VAT Registration Number
      • Date on which the business entity became VAT registered
      • Issue date
      • Registered address
      • First VAT return period
      • VAT return due date
      • Start and end dates of tax periods

Any company that misses the VAT Registration Number cutoff date or fails to complete the VAT registration process under the deadline set by the Federal Tax Authority must undergo a fine of AED 20,000.

VAT Group Registration is a tax registration process where two or more business parties club together to form a group, with a motive of paying a single tax. By registering under the Group VAT scheme, the businesses under consideration get a single VAT number and can file a single return. A VAT group allows people and entities that are closely linked financially, economically and organizationally to operate as a single VAT person.

The following prerequisites need to be fulfilled by the concerned parties to form a VAT group:
  1. Each party should have a place of establishment or a fixed establishment in the UAE [‘place of establishment’ implies a location where a business is legally established in the UAE or where significant management decisions are taken and central management functions are conducted; ‘fixed establishment’ implies a location where a person conducts one’s business regularly or permanently, including branches]
  2. The concerned parties should be related at economic, financial or regulatory level
  3. One or more persons conducting business in the VAT group shall control others

GSPU has been a prominent player in dealing with the accounting and taxation services for business entities, whether it be a startup or an established company. Understanding the importance and need for VAT Services for new and existing business entities. Few of our wide range of VAT services are:

      • VAT registration and VAT Group registration
      • VAT compliance and control
      • VAT filing and payment
      • Data record and management
      • Accounting

GSPU, since its inception, has been a prominent player in being a business consultant dealing with accounting, taxation services for business entities at a global level. Our team of VAT experts will assist your business to file the VAT process and frame it in the most beneficial way to reduce your cash outflow during tax payment stage. To initiate the process, feel free to contact us. We would be happy to assist you and sort your queries.

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