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Vat Registration in Dubai

Whether you own a small, medium, or established large business, you need to register for VAT in UAE under the Emirati VAT law. Registering your business under the UAE VAT law denotes that your business is recognized by the Government.

VAT registration in Dubai for your business entity will depend on the income generated from your business. CDA Accounting and Bookkeeping Services LLC is one of the leading consultancies in UAE, which offers outstanding VAT registration services in Dubai in addition to VAT deregistration, VAT accounting, VAT return filing, etc.

VAT Registration in Dubai

VAT registration in the UAE started in Jan 2018. The UAE Minister of State for Financial Affairs, His Excellency Obaid Humaid Al Tayer, has stated that the UAE will implement VAT Registration within the UAE at the speed of fifty on 1 January 2018. 

 

The minister was speaking in Dubai on 24 February after a joint news conference with Christine Lagarde, director of the International Fund (IMF). VAT is predicted to be introduced at a rate of fifty with some limited exceptions including basic food items, healthcare, and education.

 

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VAT Registration in Dubai

VAT registration within the UAE

According to The UAE’s Federal Tax Authority, UAE companies operating in UAE must register for Added Tax, to be able to claim VAT refunds on supplies from outside the UAE. Businesses that fail to satisfy the deadline will face late registration penalties.UAE companies now have but 45 days to arrange their financial, production, human, and technological resources for VAT.

The UAE is getting to implement it on 1 January 2018 – other GCC countries may do so at an equivalent time or by 1 January 2019 at the latest. Background The GCC States are in the process of approving the introduction of a worth Added Tax (VAT) system within the GCC. The common VAT framework will form the idea for the introduction of a national VAT system by each Member State.

Do I would like to register for VAT within the UAE

you want to register for VAT if the whole value of your taxable supplies and imports within the UAE exceeds the mandatory registration threshold of AED 375,000, A non-resident doing taxable business within the UAE must register for VAT regardless of the above-mentioned thresholds.

 

The exact details of the VAT regime which can begin within the common framework and national legislation are yet to be made available. , The establishment of clear regulations, and efficient administrative processes for VAT introduction. Businesses within the UAE (and GCC) should start planning now how the changes could impact their business, to ensure a smooth transition.

While there are a variety of challenges that also have to be addressed before it’s introduced, VAT will help governments deliver on long-standing plans for economic diversification far away from oil, while still having the ability to deliver social and economic programs.

Documents Required for VAT Registration in Dubai

  • Passport copy or Emirates ID to prove the identity of the authorized party
  • Trade license copy of the company
  • Certificate of Incorporation of the company
  • Certificate of Articles of Association of the company
  • Certificate of Power of Attorney of the company
  • Description of business activities
  • Turnover for the last 12 months in AED
  • Supporting document for 12-month sales
  • Expected turnover in the next 30 days
  • Estimated value of imports for one year from all GCC countries
  • Estimated value of exports for one year to all GCC countries
  • Your consent whether you deal with GCC suppliers or customers
  • Supporting documents for customs registration in the Emirates if applicable.
  • Details of Bank Account

VAT Registration in Dubai Processes

A business can opt for any of the two types of VAT registration in UAE:

1. Mandatory Registration

A business must register for VAT:

  • If the total value of its taxable supplies and imports exceeds the required registration threshold over the previous 12 months

  • If the business expects that the total value of its taxable supplies and imports will exceed the obligatory registration threshold in the next 30 days.

The threshold for mandatory registration of a business is AED 375,000. But this threshold does not apply to foreign organizations.

2. Voluntary Registration

A company may opt for Voluntary Registration:

  • If it does not meet the mandatory registration criteria,

  • If the total value of its taxable supplies and imports or taxable expenses in the preceding 12 months surpasses the voluntary registration threshold,

  • If the business foresees that the total value of its taxable supplies and imports or taxable expenses will exceed the voluntary registration threshold in the next 30 days.

 

 

VAT Registration in Dubai for Businesses

If you are dealing with taxable goods and services for your business, you will have to register for VAT mandatorily. Similarly, VAT registration services in Dubai are applicable for an established enterprise both in the mainland and the free zone. All you have to do is check for the eligibility criteria and to get started with the registration process.

To comply with the UAE VAT laws, businesses must have a TRN number. A Tax Registration Number is a 15-digit number that is assigned to a business owner or vendor if they are eligible for VAT registration. It is given by the Federal Tax Authority and stays valid through the UAE for trade purposes. The TRN number serves a myriad of benefits for businesses apart from being proof of VAT compliance-

  • TRN is also proof of the operating status of any company in the UAE.
  • It helps in filing returns and receiving reimbursements for VAT.
  • TRN number allows companies to claim their input VAT-related expenses from the UAE government
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Business setup in Dubai

How to Apply for VAT Registration in Dubai?

Businesses need to apply for VAT as a government obligation. The deadlines based on business turnover or type of VAT are announced from time to time by the government. You should also know the application process. This will help you understand the details required to complete your application and prepare the documents in advance. Make sure you’re thorough with the following procedure to avoid any delays or hindrances

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VAT Registration in Dubai

Create an account on the Service Portal of FTA

Once you log into your account, you will find an online VAT registration form. The details required in the form will be
  • Details if your business
  • Personal details
  • Contact information of your business
  • Banking details
  • Declaration of any business relationships
  • Information about the VAT registration. (The FTA provides this)
  • Declaration for VAT registration services in UAE

Businesses will need to adapt to the changes by identifying the impact of VAT on their business, and key immediate considerations are to:

• Assess the potential of existing systems

 

• Identify VAT implementation strategy

 

• Identify contracts that require a VAT action

 

• Identify intercompany transactions

 

• Undertake training/awareness

Documents Required for VAT Registration in Dubai

A valid email ID shall be used because the login ID for VAT registration and compliance purposes on the FTA website

 

Are you registering as a Tax group or one company? (A Tax group is often formed once you’ve got two or more separate legal entities; each of which must be resident within the UAE, that are associated, and which meet specific control criteria).

 

  • Copy of valid Trade License

  • Certificate of Incorporation/ Registration Certificate (if applicable)

  • Are you registering mandatorily (where turnover is kind of AED 375,000) or voluntarily (where turnover/expenses are kinds of AED 187,500)

  • Primary checking account details including IBAN(This are becoming to be used for VAT refund purposes)

  • List other business(es) of the directors/ partners in UAE within the last 5 years in conjunction with their Trade License copies (if applicable)

  • Provide services  VAT exempt like Financial services, Supply of residential buildings along sale or lease, Supply of bare land & Supply of local passenger transport?

  • Copy of audited/unaudited financials for the last 12 months

  • Details Provide activities of the business 

  • Expected revenue and expense for subsequent 30 days (an approximate number)

  • Supporting documents for customs registration in each emirate

  • The estimated value of imports for one year from GCC countries

  • The estimated value of exports every year to each GCC countries

  • Whether you expect to affect GCC suppliers or customers

 

If you’re registered for VAT in any GCC member states and if doing business with any GCC country? (Country name, TRN, Estimated value of imports and exports (per year))

VAT Registration in Dubai

Existing Companies Sum of Turnover within the last 12 months

Compulsory AED 375,000 and above Voluntary Between AED 375,000 and 187,500 Not Required but AED 187,500 Excludes the price of Exempt invoices. New Companies VAT purchase to date within the last 11 months and current month Compulsory AED 375,000 and above

A group of companies may register under one VAT registration entity if they meet the eligibility requirements. Such a gaggle is taken under consideration together with a taxable entity and allowed to balance the decrease of member companies. Trade within group companies also doesn’t attract tax.

VAT Registration in Dubai

VAT Registration

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Eligibility to form a VAT Group is yet to be announced but will presumably include common shareholders with majority stakes in each company. Watch this page for information on registration requirements and process once the govt. announces the portal and format for obtaining the VAT registration number. Do you have a reputation that differs from the name of the entity (trade name in conjunction with legal name will appear on your VAT certificate)? Potential VAT implementation on consumer behavior provides opportunities for companies to assess their business direction and to plan strategically.

Contact us for VAT registration in Dubai

We at BCM Corporate Services LLC, extend our quality services to our clients with well-experienced & qualified Business consultants with rich expertise in VAT Registration in Dubai so that client’s requirements of Business setup in Dubai. can be completed on time with satisfactory Results outcome. Please feel free to reach us for your Business setup and document attestation Services in Dubai requirements on our email id: info@branches.ae or call us on +971502585921

WhatsApp +971-551196792

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