VAT Registration Services in UAE
The VAT implementation is mandatory on taxpayers in accordance with Federal decree-law No. 8 of 2017 on VAT and the Cabinet Decision (52) of 2017. Taxable businesses managed on the mainland and in the free zones of the UAE are equally responsible for VAT compliance. It’s the reason companies seek out VAT registration services in UAE.
Objective of VAT Registration in UAE
Since 2018, each step in the supply chain entails a 5% VAT charge on taxable supplies of goods or services. Only VAT registered businesses can charge VAT to end-consumers on behalf of the regulatory authority.. This value-added tax collection benefits the UAE government as well as the citizens. VAT registration in UAE is mandated for different reasons such as
- Increase the government budget.
- Facilitate UAE public.
- Stabilize the economy.
- A new source of income.
- Enhances business reliability.
- Avoids unexceptional VAT penalties.
- Registered entities claim VAT refunds.
- Obtain your tax registration number.
Types of VAT Registration Services
Mandatory VAT Registration
Businesses and individuals who exceed the limit of AED 375,000 in the past 12 months, must register for mandatory VAT registration within 20 days of such occurrence.
Voluntary VAT Registration
Any company or individual that supplies and imports or taxable expenses has crossed the voluntary threshold limit of AED 187,500 in the last twelve months or expects to cross it in the next thirty days may apply for voluntary registration.
Process of VAT Registration in UAE
Although the VAT registration procedure in UAE is totally online, still it needs expertise and guidance. The VAT registration application should be submitted effectively to the Federal Tax Authority (FTA). Our VAT registration services in Dubai fully assist you in this whole process. Just follow them:
1- E-Service Account on FTA
For VAT registration in UAE, the first and most essential step is setting up an e-service account or logging into the official Federal Tax Authority portal. The authority put some questions to verify your identity. It includes your email address, password, security code, an alphanumeric test, and some terms and conditions. After submitting the above information you can sign up. Then you can log in using your registered username and password to your e-service account.
2. Submit Essential Documents
The second step is to submit documents required for VAT registration in UAE. The Federal Tax Authority demands that the information is in both English and Arabic language. Insufficient or incomplete details can delay the registration process significantly. Below we have a list of documents and information needed for VAT registration.
- Trade license copies
- Business partners and owners passport copy.
- Memorandum of Association of the company.
- Emirates ID of the business owner & partners.
- Business authentic contact details (physical or virtual address).
- Applicant contact details (contact number and email address).
- Company’s bank account details.
- Turnover declaration for the last 12 months
- Information regarding business nature and operations
- Expected revenue & expenses after completing the VAT implementation.(within 30 days)
- Is the business involved with the customs department? If so, include a copy of the customs letter.
- Is their business export-oriented or import-oriented?
- If the company is located in a GCC country, mention the country name.
- Information about expected exempted goods and services
- List of all business partners and owners’ records and licenses in the last 5 years.
Applicants will be notified by email if more information is needed by the Federal Tax Authority (FTA).
3. Edit the Approved VAT Registration Application
The UAE relevant authorities enable registrants to amend their submitted VAT registration form within 20 days of happening. During the VAT registration process, an entity’s tax records may need to be updated. If you find any complexity in the procedure you may outsource VAT Services in Dubai, and display your authorized tax records to FTA more confidently.
VAT Registration for New Company
When an individual or a group is planning to set up a company in the United Arab Emirates. They must comply with state laws and regulations. But many times entities get confused whether they necessarily need VAT registration for new company? The answer is no if the business is generating or expecting a turnover below AED 187,500. FTA does not approve their VAT registration application and does not issue the Tax registration number (TRN). It is only mandatory for startups if they fall under VAT eligibility criteria.
Fine for Late VAT Registration in UAE
Under Cabinet Decision No. (49) of 2021 of UAE VAT law, each taxable entity should submit their VAT registration on time. Failure to submit the application within the given deadline may attract a penalty of AED 10,000 according to the amended VAT penalties in UAE.
VAT Registration of a Tax Group
In the United Arab Emirates, many entities operate businesses in multiple locations and have specific control over them. The FTA allows legal entities to register themselves as a tax group if they hold more than 50% shares in various companies. Up to two or more taxable entities which must be residents in UAE can make a tax group for all the registered businesses. A tax group must comply with VAT registration in UAE to get a separate tax identification number for all the companies. You may take assistance from our expert VAT registration services in UAE and follow all Federal Tax Authority requirements.
BestaxCA: VAT Registration Service in Dubai
Bestax Chartered Accountants in Dubai, are experts in financial consultancy and tax-related issues in the United Arab Emirates. Our team provides you with an exclusive range of value-added tax services such as VAT registration & de-registration, VAT return filing, VAT refunds, VAT voluntary disclosure, and many other VAT consultancy services in UAE. We offer customized and cost-effective solutions to both domestic and international clients. We professionally guide you in the process of VAT registration in UAE, the initial stage of VAT compliance. Our tax experts provide complete support and advice to effectively manage your registration procedure. We are just a call away to resolve your all complexities regarding VAT registration.
Mobile: +971 56 7981808