Value Added Tax, an indirect tax levied on the consumption of goods and services by about 160 countries around the world, has been adopted as a system. This tax serves as another section for revenue generation for higher officials. The emirate has got several areas, which are considered business tax-free zone which has become investment center for foreign investors. If you are planning to set up your business in Dubai and want to know how to apply for VAT registration in UAE. So, in this blog, we present you with the process of registration for VAT.
If your business is registered under VAT law, it shows that it is recognized by the government. After realizing this, the GCC countries have recently registered themselves under the law of VAT and applies with a 5% rate on 1 January 2018.
To know more regarding the VAT registration, you require to consult with the best VAT consulting services in Dubai.
Types of VAT Registration Services
There are two types of VAT registration services, the companies will select one category for VAT registration and it would be depending on their annual turnover. Following are the VAT registration categories:
- Mandatory VAT Registration – according to Federal Tax Authority (FTA), individuals or companies having an annual turnover of AED 375,000 or more should apply for VAT registration and have to receive a Tax Registration Number (TRN) to run business in the UAE, they have to implement VAT and should collect VAT on FTA behalf. This is called Mandatory VAT registration in UAE.
- Voluntary VAT Registration – according to the FTA (Federal Tax Authority), individuals and companies having an annual turnover of more than AED 187,500 but less than AED 375,000 can voluntarily apply for VAT registration and receive TRN voluntarily. It is totally up to the company if they wish to register or do not wish to register. In both cases, there will not be an issue. There is some process to apply for TRN in the UAE.
VAT Registration for New Company
VAT registration is not necessary for a new company in Dubai. newly incorporated companies do not need VAT registration services in the UAE. VAT registration for a new company is applicable only if the company is expecting a turnover of AED 187,500. Below this turnover, they do not need to register as FTA (Federal Tax Authority) will reject their VAT registration application and will not issue tax registration number (TRN).
VAT Registration as a Tax Group
VAT registration as a tax group based on the number of companies doing business with multiple business licenses. For tax group registration, all businesses should be established in the United Arab Emirates. Federal Tax Authority (FTA) will issue one Tax Registration Number for the entire group of companies.
VAT Registration for International Companies
If you are a non-UAE resident selling goods located in the United Arab Emirates to a UAE customer, you must register for VAT, regardless of the level of turnover from such sales.
International companies have to register under a VAT number before they can start selling in the UAE. VAT registration is mandatory for international companies selling in the UAE.
Documents Required for VAT Registration
One of the very crucial requisites to complete when applying for a VAT number in Dubai have a tax identification number. This is obtained together with the certificate of incorporation and issued by the trade register in Dubai. Depends on the Tax identification number, a company would be issued a VAT certificate.
The documents that required for VAT registration in UAE are:
- Copy of Trade License
- Passport copy of the owners or partners
- Emirates ID of the owners or partners
- Memorandum of Association
- Company’s bank account details and IBAN
- Details business turnover for the last 12 months
- Customs authority registration code
- Certificate of incorporation
- Certificate of Power of Attorney of the company
- Supporting document for 12 months sales
- Estimate value of imports and exports for one year from all GCC countries
- Expected turnover in the next 30 days
Our VAT Consultancy Services in Dubai and UAE are:
The following are the types of VAT services Dubai, that we provide at Start Any Business:
- VAT Consultancy – Our best VAT consultants in Dubai will assist you with the VAT registration process and with sustaining a record of your tax invoices so you can avoid any penalties.
- VAT Agent Appointment – you can fix an appointment with our top professionals in Dubai who have experience in handling VAT.
- VAT Development – Since our experts have a lot of experience working with VAT in different countries, our vat services Dubai can help you with moving to the tax procedure transition.
- VAT Compliance – To ensure that you file your VAT on time, our VAT consultants in Dubai, will help you find all the applicable adherence needs as per the Dubai VAT standards.
- VAT Filing – We at Start Any Business will help you record and file client invoices the correct way, and at the correct time, so you do not get a penalty.
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