Office 804, Park Lane Tower, Business  Bay Dubai, UAE

VAT Registration Services

VAT registration services in Dubai

The introduction of VAT is mandatory for taxpayers in accordance with Federal Decree-Law No. 8 of 2017 on VAT and the 2017 Cabinet Decision (52). Taxable companies managed on the mainland and in the UAE free zones are equally responsible for VAT compliance. This is the reason why companies seek VAT registration services in Dubai.

Purpose of VAT registration in the UAE

Since 2018, every link in the supply chain has been subject to a 5% VAT charge on taxable supplies of goods or services. Only VAT registered companies can collect VAT from end consumers on behalf of the regulatory authority. This collection of value-added tax benefits the UAE government as well as the citizens. VAT registration is compulsory in the UAE for various reasons, such as.

  • To increase the national budget
  • Make life easier for the UAE public
  • Stabilize the economy
  • A new source of income
  • Improves business credibility
  • Avoids unforeseen VAT penalties
  • Registered entities claim VAT refunds
  • Get your tax registration number
  • Types of VAT registration services
  • Compulsory VAT registration

Businesses and individuals that exceed the AED 375 000 limits in the last 12 months must register for compulsory VAT registration within 20 days of such an event.

Voluntary VAT registration

Any business or individual making supplies and imports or taxable expenditure which has exceeded the voluntary registration threshold of AED 187 500 in the last 12 months or expects to exceed it in the next 30 days may apply for voluntary registration.

The VAT registration process in the UAE

Although the VAT registration procedure in the UAE is fully online, knowledge and guidance are required. The VAT registration application must be effectively submitted to the Federal Tax Authority (FTA). Our VAT registration services in Dubai will fully guide you through this process.

E-services account with the FTA

For VAT registration in the UAE, the first and most important step is to create an e-service account or log in to the official portal of the Federal Tax Authority. The authority asks a few questions to verify your identity. These include your email address, password, security code, alphanumeric text, and some terms and conditions. After providing the above information, you can register. You can then log in to your e-service account using your registered username and password.

Submit the relevant documents

The second step is to submit the documents required for VAT registration in the UAE. The Federal Tax Authority requires the information to be in both English and Arabic. Insufficient or incomplete information can significantly delay the registration process. Below is a list of documents and information required for VAT registration?

  • Copy of passport of partners and owners
  • Memorandum of Incorporation
  • Emirates ID of the owner and partners
  • Authentic contact details of the company (physical or virtual address)
  • Applicant’s contact details (contact telephone number and e-mail address)
  • Bank account details of the company
  • Turnover declaration for the last 12 months
  • Information on the type of business and activity
  • Estimated revenue and expenditure after VAT implementation (within 30 days)
  • Is the business linked to the customs service? If yes, attach a copy of the customs letter.
  • Is the business export or import oriented?
  • If the company is located in a GCC country, please provide the name of the country.
  • Information on the goods and services to be exempted
  • List of records and licenses of all business partners and owners in the last 5 years
  • If the Federal Tax Authority (FTA) requires additional information, applicants will be notified by email.

Editing an approved VAT registration application

The UAE authorities allow registrants to amend the VAT registration form submitted within 20 days of submission. During the VAT registration process, it may be necessary to update the company’s tax records. If you find the procedure complicated, you can outsource VAT in Dubai and present your approved tax records to the FTA in a more secure manner.

VAT registration for a new company

If an individual or group is planning to set up a company in the United Arab Emirates. They must comply with national laws and regulations. However, in many cases, companies are confused as to whether they definitely need to register VAT for a new company. The answer is “no” if the company’s turnover is less than AED 187 500. The FTA does not approve their VAT registration application and does not issue a Tax Registration Number (TRN). This is mandatory for start-ups only if they meet the VAT eligibility criteria.

Penalty for late VAT registration in the UAE

According to the UAE VAT Law 2021 Cabinet Decision No. (49), every taxable entity must submit a VAT registration application on time. Failure to submit the application within the prescribed time limit may result in a penalty of AED 10 000 in the UAE under the amended VAT penalties.

VAT registration of a tax group

In the United Arab Emirates, many companies operate in more than one location and are subject to special controls. The FTA allows legal entities to register as a tax group if they own more than 50% of the shares in different companies. A tax group can be formed by up to two or more taxpayers who must be residents in the UAE and can register all the companies registered. The tax group must comply with the conditions for VAT registration in the UAE in order to obtain a separate tax identification number for all companies. You can get help from our expert VAT registration services in Dubai and comply with all the requirements of the federal tax authority.

BestaxCA: VAT registration services in Dubai

BestaxACA chartered accountants in Dubai are experts in financial advisory and tax-related matters in the United Arab Emirates. Our team provides you with an exclusive range of value-added tax services such as VAT registration and deregistration, VAT return filing, VAT refunds, VAT voluntary disclosure, and many other VAT advisory services in the UAE. We offer tailored and cost-effective solutions for both local and international clients. We will professionally assist you with the VAT registration process in the UAE, which is the initial stage of VAT compliance. Our tax experts provide full support and advice to efficiently manage your registration procedure. We are just a phone call away to resolve all your VAT registration complexities.

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