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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.

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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.

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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

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Various VAT Registration Methods In the UAE

1. 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.

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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.

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Understanding the Tax Registration Threshold

 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:

  • The total exposure to taxation by way of attempting to control the supply of taxable goods and services at any given period.
  • The overall amount of related products and services, purchased by the business.
  • Acquired inventories for which tax is payable in case they are bought from another person.
  • The amount of taxable supplies made by the connected persons, in terms of the Executive Regulation.

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Repositioning of VAT As a Tax Group in the UAE

After satisfying certain conditions the Businesses can choose the option to get VAT registration as a Tax Group :

  • Legal entities having UAE Establishment.
  • The parties must be Related Parties by direction and their consent must be expressed.
  • Some of the members in the partnership must be able to dominate the others in the partnership.

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.
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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:

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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

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For quick answer to your question, please send a WhatsApp message to:+971 52 6922588 | Tel: +97142500251 | E-mail: sales@farahatco.com