VAT registration services in Dubai, United Arab Emirates
Whether you are a small, medium or large business, you will need to register for VAT in the UAE in accordance with UAE VAT laws. Registration under UAE VAT legislation shows that your business is recognized by the government. In the UAE, your company’s VAT registration depends on your company’s revenue.
BESTAXCA Accounting and Bookkeeping Services LLC is one of the leading consultancy firms in UAE that provides excellent VAT Registration Services In Dubai, as well as VAT registration services, VAT bookkeeping, VAT returns, etc.
Online VAT registration in UAE
If you are a UAE-based business, you will need to register your business in accordance with the VAT laws that came into force on 1 January 2018. Once a business is registered for VAT in Dubai, it must submit VAT returns on a regular basis or as required by the authorities.
Companies and individuals operating in the UAE must register for VAT if their annual turnover exceeds AED 375 000/-.
The VAT registration process in Dubai includes:
Invoicing VAT on invoices issued to customers.
Submitting VAT returns to the Federal Tax Authority through the VAT Returns Department.
Documents required for VAT registration in Dubai
Copy of passport or UAE identity card proving the identity of the authorized person.
Copy of the business license
Certificate of incorporation of the company
Articles of association of the company
Description of the business
Turnover in AEDs in the last 12 months
12 months turnover certificate
Expected turnover for the next 30 days
The estimated value of imports from GCC countries in one year
The estimated value of total exports to GCC countries in one year
Your agreement to cooperate with GCC suppliers or customers.
If applicable, supporting documents for customs clearance in the UAE.
Bank account details
VAT registration procedure
In principle, businesses can choose between two types of UAE VAT registration:
1. compulsory registration
1. VAT registration is mandatory for businesses:
If the total value of taxable sales and imports during the last 12 months exceeds the registration threshold.
If a business estimates that its total taxable sales and imports for the next 12 months will exceed the compulsory registration threshold for the next 30 days.
The compulsory registration threshold is AED 375 000. However, this threshold does not apply to foreign entities.
Companies may opt for voluntary registration:
If it does not meet the requirements for compulsory registration,
If it does not meet the requirements for voluntary registration, it does not have to meet the voluntary registration threshold,
If it does not meet the requirements for voluntary registration, it does not have to comply with the voluntary registration threshold, if it expects its total taxable sales and imports of goods or taxable expenses to exceed the voluntary registration threshold within the next 30 days.
The voluntary registration threshold for companies is AED 187 500.
Calculation of the tax registration threshold
In accordance with the 2017 VAT Regulation (8), the following information is taken into account to determine whether a person has exceeded the mandatory registration threshold and the voluntary registration threshold:
Value of taxable goods and services
the value of the relevant goods and services received by the person concerned
the value of the whole or the relevant part of the taxable supply attributable to that person if he acquired the business wholly or partly from another person who carried out the supply.
the value of taxable supplies made by connected persons in accordance with the cases provided for in the implementing provision of this Decree-Law.
VAT registration as a group
Two or more persons carrying on business in the UAE may apply to register for taxation as a tax group under the following conditions
Each person must have a place of business or permanent establishment in the State.
The persons concerned must be related persons.
One or more of the persons carrying on a business within the partnership controls the other persons.
If the related persons do not apply for registration as a tax group, the authority may assess their relationship on the basis of their economic, financial and regulatory business practices and register them as a tax group if the relationship has been established in accordance with the controls and conditions set out in the implementing regulation.
Sectors exempt from VAT
The following categories of supplies will be exempt from VAT:
The supply of certain financial services as explained in the VAT legislation
Residential real estate
Local passenger transport
How to register for VAT in the UAE
VAT registration in the UAE is an online process that can be done through the VAT registration portal at www.tax.gov.ae.
Once the application is submitted, the FTA will review the information and documents submitted and if everything meets the requirements, it will approve the application and allow for the allocation of a Tax Registration Number (TRN).
Once the VAT registration is complete, the Ministry of Finance will issue a VAT certificate, which is the official confirmation from the authorities that the company is registered under the UAE VAT law.
The VAT certificate contains the following basic information:
VAT registration number
Date of VAT registration
Date of issue
Address of the registered entity
First VAT return period
Date of submission of the VAT return
Date of beginning and end of the tax period
Penalty for non-registration
Any business that fails to complete VAT registration within the time limit set by the Federal Tax Authority, or if the business fails to register after the manual limit has been exceeded, will pay a penalty of AED 20,000.
Importance of VAT registration
Experts state that the introduction of VAT in the UAE will bring long-term benefits to the country’s economy and businesses. Some of the main reasons why VAT registration in Dubai is considered important include
It makes the company more visible
Avoids unnecessary penalties
Allows you to claim VAT refunds
Expands market opportunities
BESTAXCA’s VAT advisory services
BESTAXCA plays an important role in providing accounting and tax services to businesses of all sizes. BESTAXCA professionals are selected for their insight into VAT practice. They know the correct procedure for VAT registration in the UAE. Therefore, BESTAXCA is the first choice for businesses that need to consider VAT registration in UAE. BESTAXCA not only offers VAT registration services in Dubai but also all kinds of VAT related services to help small, medium and large businesses to achieve maximum profit.
We understand the importance and need of VAT services for all businesses in UAE and offer a wide range of VAT services that include
Cancellation of VAT registration
VAT compliance and control
VAT reporting and payment
Data entry and data management
BESTAXCA offers a wide range of services for businesses including CFO services, audit services, accounting and bookkeeping services, accounting software, due diligence services and tax documentation services.
If you have any questions about VAT registration in the UAE or your current business, please do not hesitate to contact us. BESTAXCA is here for you!
Our expert will provide you with a free one-hour consultation to avoid reservations!