Documents Needed in the UAE for Corporate Tax Registration
CTRN or Corporate tax Registration Number from the Federal Tax Authority is mandatory for all companies now that the corporate tax system in the UAE…
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VAT Registration
VAT Registration is a service provided by “VAT Registration UAE” The taxation experts in the UAE since 1985.
“VAT Registration UAE” is a trusted VAT and Taxes agent. For more than 35 years, we have been providing tax services with the highest standards of quality and professional commitment in the UAE, and we have a client record of more than 30,000 clients got successful tax planning and with high professional quality standards.
VAT Return Filing
At “VAT Registration UAE”, we also provide the assurance that net VAT positions of taxable business entities are accurate and within the bounds of UAE law. A business in Dubai, Sharjah or any part of the UAE is given a maximum of twenty-eight (28) days for filing VAT returns by the end of a tax period. This limited time makes it incredibly difficult the submission of accurate records, especially for enterprises and corporations dealing with a massive volume of transactions. The same is true for VAT groups as well.
VAT Accounting
VAT Accounting is relatively new to businesses in UAE as VAT has only been implemented recently. A VAT registered business in UAE that fails in keeping and submitting VAT records will be imposed with a fine of Dhs 10,000. Repeated offenses will have a penalty of Dhs 50,000. Our tax agents in UAE provide VAT Accounting so businesses are immune to tax violations and penalties. We provide bookkeeping assistance as part of VAT Accounting in Dubai, Sharjah or any Emirate of the UAE
VAT Reclaims
VAT return filing is necessary for all VAT-registered businesses in UAE, and they are to furnish details on input VAT and output VAT throughout a tax period. Output VAT is collected on sales whereas input VAT is paid to a supplier of a business. If the output VAT is higher compared to the input VAT, then the balance would be payable by the VAT-registered business to the Federal Tax Authority.
VAT Deregistration
VAT deregistration is mandatory as per UAE VAT legislation when taxable businesses no longer exist or deal with taxable supplies. Deregistration of VAT in UAE involves VAT registration deactivation and cancellation of a business’ tax registration number (TRN). As soon as a company ceases trading, the FTA may cancel the VAT registration in Dubai if it is satisfied with the provided reason(s).
Regulated Tax Agent Services
Appointing VAT Registration UAE. as your regulated tax consultant allows you to receive updates on the latest changes in law provisions, eliminating the possibility of fines and penalties for noncompliance. As a taxable person, you require help in tax planning and compliance. Our VAT experts won’t just maintain accounts records and financial documents for you but also provide representation on your behalf for VAT registration UAE and return filing.
Our Clients
VAT Registration UAE
The United Arab Emirates has always offered great deals of monetary and investment opportunities to the world. UAE is an admired key investment axis for avid entrepreneurs from all over the world. It is growing and progressing on multiple fronts and is headed to implausible accomplishments. In this scenario, Value Added Tax (VAT) has been implemented in the UAE in 2018 as in the long run it will benefit everyone who lives here.
What is VAT?
VAT (Value Added Tax) is an indirect tax initially with a very nominal rate i.e. 5%, applicable for most of the goods and businesses. Though UAE government has exempted food items, education and healthcare services from VAT but people can notice a little rise in their cost of living. However, it needs to be considered that VAT will not strain the wallets much but allows the high living standards not only to remain high but improving.
To comply with VAT and related legal requirements businesses need to make changes in their existing processes. Companies have to ensure that their accounts or records are well managed according to the new VAT regulations implemented by the government effective from 1st Jan 2018.
If a business in UAE exceeding AED 375,000 with the supplies and imports of goods/services subject to tax then it must register for VAT as per the Federal Tax Authority. As per FTA, all businesses must ensure the recording of their financial transactions, apart from that VAT registration requirements have done and ledgers are updated in time to avoid penalties.
VAT Registration Process
To complete the VAT registration in UAE, the service is available 24/7 through the FTA’s website. Businesses should visit the website www.tax.gov.ae, select the e-Services portal, sign up, and create an account. After the email verification, one can log in and register the business.
The FTA has advised businesses to provide precise information and fill up the application form accurately. Scanned documents including the trade/business license, passport/Emirates ID of the Manager/Owner of the business must be attached to complete the registration process.
The passport/Emirates ID of the authorized signatory must be submitted if the signatory is not the manager him/herself along with the proof of authorization including articles of association, power of attorney attested by notary etc.
VAT Registration Requirements
There are a couple of documents required that come with registering with the VAT in UAE. The nature of the organization matters in registration.
For a businessman applying for a VAT certificate as an individual, the following are needed:
- Applicant’s request letter with signature
- Applicant’s resident permit
- Applicant’s passport copy
For businessmen registering as an authority, the requirements are as follows:
- Decree copy
- Application letter with authorized signatory
- Act of incorporation copy
The requirements for a Dubai-based business registering for VAT are as follows:
- Applicant’s application letter signed by the company’s authorities
- Trading license copy
Types of VAT registration
Not all Businesses are subject to VAT, but the company’s revenues and imports determine whether it is mandatory to register them or not, as the law sets the limit for mandatory and optional registration, with the aim of protecting small companies from the burden related to preparing documents and papers required to VAT Registration UAE. The same applies to some materials and services are excluded by the law from value-added tax. Companies making supplies related to materials and services specified by the law make them exempt from the provisions related to value-added tax.
1. Mandatory registration
This occurs when the company’s revenues and imports from abroad exceed the VAT registration threshold (mandatory registration limit) of AED375,000. The company’s legal representative, who may be its tax agent, submits a registration application to the Federal Tax Authority within a period of thirty days from the date the obligation arose.
In the event that the legal representative does not adhere to the period specified above, the Authority may register the company legally from the date the obligation arose, in addition to imposing the associated fines resulting from such delay.
Companies that are non-resident in the UAE and carry out supplies are subject to VAT, as the company is obligated to do so in accordance with the provisions of the federal decree law regarding VAT, whether the company notifies the Authority of its obligation to register or not, and tax registration can be decided starting from an earlier date. To create the obligation in the event of an agreement between the Authority and the company on this.
2. Optional registration
This occurs if the company’s revenues and imports from abroad exceed the legally specified optional registration limit of AED187,500, as the Authority registers the company for taxation from the first day of the month following the date of submitting the application. Registration may also be on another date agreed upon between the Authority and the company’s legal representative.
If the company expects that its revenues and imports from abroad during the next thirty days will exceed the optional registration limit, the company may submit an application related to tax registration supported by evidence of this.
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