VAT Registration Services in Dubai, UAE
VAT Registration in UAE is a process of registering your business with the appropriate authorities, which proves its engagement in the production and sales. After the registration of this kind, your business receives the capability to reclaim VAT on its acquisitions and is required to charge the correct amount of VAT to any supplies that it makes. VAT registration is not merely a legal requirement but one of the most essential measures in relation to compliance with the laws in Dubai. After registering your business for VAT, you shall submit VAT returns according to the regulatory framework provided by the authorities Regarding the management of VAT submissions, all businesses registered with the system need to submit their VAT returns.
VAT Registration Process in Dubai
Steps are given below for VAT Registration in Dubai:-
- Complete VAT Registration: First, the registration for VAT can be done through the online official website.
- Issuing VAT-Compliant Invoices: Once registered ensure that each of the invoices you issue to your clients clearly shows the VAT charges for each item.
- Filing VAT Returns: One of the crucial requirements is to report VAT to the Federal Tax Authorities by submitting standard VAT returns constantly.
Essential Documents Required for VAT Registration in Dubai
To successfully register your business for VAT in Dubai, you need to gather the following documents:
- A scanned copy of the authorized party’s Passport / Emirates ID.
- Company business/Trade License
- Incorporation Certificate
- AOA(Articles of Association)
- Power of Attorney
- The specific character of the business activities and the processes conducted by the firm.
- Total turnovers made in the one year prior to the time of compiling this report of that specific business in AED.
- Sales records for the past one year such as the receipts and other forms of proof of the sales that have been affected.
- The exposed forecast of the turnover for the subsequent one month.
- The one-year ahead forecast of imports and exports with all the GCC countries was also included for the international trading partners.
- Consent on business relations concerning supply from, or demand within GCC as suppliers or customers.
- Any papers for customs registration within the emirates The investors may be required to present papers for customs registration within the Emirates if any.
- The details can refer to the business’ bank account.
Various VAT Registration Methods In the UAE
- Mandatory VAT Registration
- If the total value of the registrant's taxable supplies and imports in the period of 12 months prior to the registration date is more than AED 375,000.
- In case of expectation by the business that the total value of taxable supplies and imports will be over the registration threshold within the next month.
2. Voluntary VAT Registration
Voluntary VAT registration in the UAE refers to the act where a candidate stands for an exam apart from the routine exams offered by their school, teacher or employer based on the current syllabus.
- If your business does not meet the compulsory registration criteria but the total value of taxable supplies, imports and the total value of the taxable expenses in the past one year amounts to or more than AED 187,500.
- This rule applies when the anticipated total value of taxable supplies, imports, or taxable expenses for the following month is expected to exceed the voluntary registration threshold.
VAT Exempt Sectors in Dubai
Certain supplies are exempt from VAT under UAE law, including:
- Bare Land
- As a legalistic instrument, specific financial services in the context of VAT legislation.
- Properties used for Residential purposes.
- Transport services for Local passengers.
Federal Decree-Law No. (8) of 2017 on Value Added Tax provides guidance on the factors to consider in determining if a business surpasses the Mandatory or Voluntary Registration Threshold: After satisfying certain conditions the Businesses can choose the option to get VAT registration as a Tax Group : Even in cases where related parties have not sought for VAT Registration as a Tax Group, the Federal Tax Authority may grant registration to the parties as a group through an assessment of the economic, financial and regulatory links.Understanding the Tax Registration Threshold:-
Repositioning of VAT As a Tax Group in the UAE
Consequences of Non-Registration Under VAT:
Non-registration of VAT before the stipulated date or where a businessman exceeds the deregistration limit may attract a penalty of which a business can be fined AED 20,000 based on VAT issues that are in violation.
Why should one register his business for VAT?
Registering for VAT in Dubai not only ensures legal compliance but also offers several benefits, including:
- Enhancing your business profile
- Avoiding unnecessary penalties
- Claiming VAT refunds
- Expanding market opportunities
Tax Consultant in Dubai
Having vast experience in VAT consultancy services, we are counted among the top VAT consulting companies in the UAE. As leading accounting and tax advisory firms in Dubai by provide a wide range of services to organizations in the following areas of VAT:
- Registration for VAT
- Deregistration from VAT
- Control and Compliance of VAT
- Payment and VAT Filing
- Data Management & Entry
Other Than VAT registration we provide business-related services for instance, Auditing services, Due Diligence, Accounting & Bookkeeping services, CFO services, Auditing services, Accounting Software services, and corporate Tax return Filing. If you feel unsure about the VAT Registration in the UAE or about any other business services that you require, you can freely contact us. Do you need the services of a genuine professional in Tax consultancy in Dubai? You are in the right place.