Businesses rushed to register for the Value Added Tax (VAT) when it was implemented in the United Arab Emirates. To do business in any of the emirates, individuals or organisations that fulfil the threshold requirements—earning an annual turnover of AED 187,500 or more (voluntary) or AED 375,000 or more (mandatory)—must register for VAT UAE.
It may be registered online through the Federal Tax Authority (FTA) site at https://eservices.tax.gov.ae/en-us since it is intended to be accessible to everyone.
With the intention of diversifying the nation’s resources, VAT registration went into force in January 2018. As a consequence, business owners have become more compliant and careful when it comes to tax duties.
If this isn’t done, the company or organisation risk fines for late VAT registration in the UAE. We have compiled the essential procedures, details, paperwork, etc. for Federal Tax Authority VAT registration, particularly for startups and SMEs, in order to prevent such situations.
Who needs to sign up for VAT?
- If your company’s imports and taxable supplies in the last year totaled more than AED 375,000, you are required to register for mandatory VAT. Your company must register for mandatory VAT if it has a reasonable chance of exceeding the AED 375,000 threshold during the following 30 days.
- Your firm must voluntarily register for VAT if the combined value of your taxable costs and supplies in the past year was greater than AED 187,500. If your annual income is between AED 187,500 and AED 375,000, you are not required to register for VAT. Taxes for Free Zones Firms in the UAE Businesses who operate in Designated Zones (designated free zones that are qualified for preferential VAT treatment with some restrictions) will have to register for VAT
The regulations for VAT for the supply of goods will be governed by a number of severe standards, and those businesses are required to maintain meticulous records. The standard UAE VAT regulations are applicable to persons engaged in the provision of services.
documents needed to register for VAT We assist our customers in preparing the appropriate paperwork for effectively registering their company on the web platform as VAT consultants in Dubai. Use the list below for a point of reference and for further clarity:
- trade permit
- Certificate of Incorporation or the company’s registration certificate
- Articles of Association or Partnerships are documents that specify ownership information for a company.
- Passport copy and Emirates ID of the Manager
- Where is the company’s actual office located?
- Manager’s profile
- Account information
- Contact information
- Revenue disclosure for the most recent calendar year
- Information about the company’s custom registration GCC operations
a statement of company activity
- anticipated costs and income over the following 30 days following receipt of a tax identification number (TRN)Keep all the necessary personal & business
- identification documents with their scanned copies ready to begin the registration process. It takes two to three weeks for the FTA to issue a TRN after
- reviewing the VAT registration application.
registering for VAT as a Tax Group
A tax group is defined as a group of two or more business-engaged persons who meet the requirements outlined by UAE VAT law and register as one taxable person in the free trade zone. What are the advantages of registering a tax group for VAT?
- Each entity in this group will have a single Tax Registration Number (TRN), which will make accounting easier and make it easier to prepare and submit compliance reports like VAT returns.
- VAT is not charged on transfers made inside the VAT group, however it is charged on products sent to a third party by this group. Taxable supplies are what? Taxable supplies are those that are provided in order to conduct business in the state. The usual tax rate in the UAE is 5%. The VAT supply kinds are shown below.
- Taxable domestic supplies
- Providers of Reverse Charge
- Zero-rated materials
- Intra-GCC Supply –
- B2B Exempt Supplies
- B2C Intra-GCC Supply
Make contact with us
Concerned about where to obtain a TRN number and how to pay VAT in the UAE? Contact us today and put your worries to rest. Our team of tax experts and accountants will assist you in navigating the process effectively by abiding by the law and keeping accurate records. Call us or leave a message, and one of our executives will contact you right away.