VAT Registration in UAE
VAT Registration Services in UAE
You must register for VAT in compliance with Emirati VAT statutes for running businesses in UAE. Registering your firm under UAE VAT regulations indicates that it has been authorized by the government. Your company entity’s VAT registration in the UAE will be estimated by its income. Al MERAK Accounting and Bookkeeping Services LLC is a famous consultancy in the UAE that gives excellent VAT registration services in Dubai, as well as VAT deregistration, VAT accounting, and VAT return filing.
UAE VAT Registration Online
If businesses final income of the year exceeds AED 375,000/-. VAT registration is needed for organizations and business.
The VAT registration steps in Dubai include:
• Register for VAT
• Charge VAT on invoices to clients
• Announce VAT to federal tax authorities by filing
Documents needed for VAT Registration in Dubai
• Present a copy of the authorized party’s passport or Emirates ID as proof of identification
• A copy of the company’s trade license
• Certificate of Incorporation for the firm
• Certificate of Articles of Association for the firm
• Power of Attorney certificate for the firm
• Description of business activity
• Last 12-month turnover in AED
• Supporting document for 12-month sales
• Expected turnover during the next 30 days
• Estimated annual import value from all GCC nations
• Estimated annual export value to all GCC nations
• Consent to deal with GCC suppliers or consumers
• Providing necessary documentation for customs registration in the Emirates
• Bank account details
VAT Registration Processes
Basically, a firm can pick for one of the two methods of VAT registration in the UAE:
1. Mandatory registration
It is required that a business register for VAT
• If the total value of taxable supplies and imports exceeds the registration level within the previous 12 months
• If the firm expects its taxable supply and imports to reach the registration level in the following 30 days
AED 375,000 is the minimum amount required for obligatory business registration However, this barrier does not apply to foreign organizations
2. Voluntary registration
A firm may choose for voluntary registration:
• If it doesn’t fulfill necessary registration requirements,
• If the total value of taxable supplies, imports, or costs in the last 12 months exceeds the voluntary registration level
• If the firm expects its taxable supplies, imports, or costs to surpass the voluntary registration level in the following 30 days
The voluntary registration barrier for a corporation is AED 187,500
Calculating the Tax Registration Threshold
The following facts will be considered to determine if a person has exceeded the mandatory registration threshold and Voluntary Registration in accordance with Federal Decree-Law No. (8) of 2017 on Value Added Tax :
• Value of taxable goods and services
• The worth of the goods and services received by the person
• The value of Taxable Supplies owned by a person who has purchased a firm from the original supplier
• The value of Taxable Supplies made by connected parties, as specified in the Executive Regulation of this Decree-Law
VAT Registration as a Group
Two or more business owners may file for Tax Registration as a Tax Group in the UAE if they meet the following conditions:
• Each individual must have a fixed establishment in the state
• Relevant parties must be Related Parties
• Partnerships need one or more individuals to have power over the other partners
• If Related Parties do not apply for Tax Registration as a Tax Group, the Authority may assess their relationship based on economic, financial, and regulatory practices and register them as a Tax Group if their relationship meets the Executive Regulation’s controls and conditions
VAT- exempt sectors
The following supply types will be excluded from VAT:
• Vat legislation explains the delivery of certain financial services
• Residential properties
• Bare land
• Local passenger transportation
How to Register for VAT in UAE
VAT registration in the UAE is an online process that may be completed via the VAT registration portal offered on the www.tax.gov.ae website.
Once the application is filed, the FTA will analyze the information and documents provided and, if everything meets the standards, will grant a Tax Registration Number (TRN).
Once the VAT registration procedure is completed, the Ministry of Finance will issue a VAT certificate, which serves as formal proof from the authorities that the business is registered under the UAE VAT Law.
A VAT Certificate includes the following rudiments:
• VAT Registration Number
• Date of VAT registration
• Issue date
• The registered entity’s address
• First VAT return period
• Due date for VAT returns
• Specify tax period start and finish dates
Penalty for Non-Registration under VAT
Any firm that fails to complete the VAT registration procedure by the date given by the Federal Tax Authority, or that fails to submit registration after exceeding the manual threshold limit, is subject to a fine of AED20,000.
The Importance of VAT Registration
Experts believe that implementing VAT in the UAE will provide long-term advantages to the country’s economy and company owners. The key reasons why VAT registration in Dubai is regarded crucial are:
• It improves the corporate profile
• It prevents unwarranted fines
• Enables obtaining VAT refunds
• It expands market opportunities
Al MERAK VAT Consultancy Services
Al MERAK has played a vital role in providing accounting and taxation services to commercial organizations of all sizes. The Al MERAK professionals were picked since they understand the VAT processes. They understand the proper etiquette for UAE VAT registration. That is why Al MERAK is the primary choice for firms seeking VAT registration in the UAE. Al MERAK not only provides VAT registration services in Dubai, but also offers a wide range of VAT-related services to assist small, medium, and big enterprises in maximizing profits.
We acknowledge the relevance and necessity for VAT services for every business entity in the UAE, and we provide a comprehensive range of VAT services, which include:
• VAT registration
• VAT deregistration
• Ensuring VAT compliance and control
• File and pay VAT
• Data input and management
Al MERAK gives multiple business services, including CFO Services, Auditing Services, Accounting and Bookkeeping Service and Tax Filing Services.
Please contact us, if you have any questions about VAT registrations. Al MERAK is available to guide you!
Our team of experts will guide you with a free consultation to help you avoid penalties!
faq
Frequently Asked Questions on VAT Registration in UAE
If a person who does not have a residence in the UAE required to register for VAT?
What is the time restriction for informing the authority about VAT registration?
Can a person obtain several Tax Registration Numbers (TRNs)?
Is it feasible to obtain tax registration exemptions for firms operating in the UAE?
Will the value of capital assets be included in determining the registration threshold?
Are there any risks that an application for registration as a tax organization may be denied?
Would the selling of a company asset or the entire firm to a third party be deemed a taxable supply?
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