VAT Accounting Services for Businesses in Dubai
Comprehensive Guide to VAT Accounting Services for Businesses in Dubai…
VAT Registration in UAE
Simplifying VAT Registration in the UAE for Businesses of All Sizes
VAT Registration in UAE is a crucial compliance step for any business operating in the country. Since the introduction of Value Added Tax (VAT) in 2018, all companies crossing the mandatory threshold set by the Federal Tax Authority (FTA) are required to register for VAT. At VAT Registration in UAE, we help businesses navigate the entire process from eligibility assessment to successful FTA VAT registration in UAE ensuring accuracy, timeliness, and full compliance with UAE tax laws.
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What Is VAT Registration?
VAT registration in UAE is the process of enrolling your business with the FTA so that you can charge, collect, and remit Value Added Tax on taxable supplies. Once registered, the business receives a Tax Registration Number (TRN), which must appear on all invoices and official documents.
Businesses that fail to register on time risk facing fines and difficulties with VAT filing, invoicing, or even banking and licensing procedures.
Who Needs to Register for VAT in the UAE?
According to the Federal Tax Authority, VAT registration becomes mandatory when:
The business’s taxable supplies and imports exceed AED 375,000 in the past 12 months.
Voluntary registration is also allowed if supplies and imports exceed AED 187,500, even if you haven’t reached the mandatory limit yet.
Our experts assess your turnover, review your accounting records, and determine whether you fall under mandatory or voluntary VAT registration saving you time and uncertainty.
Step-by-Step Guide: FTA VAT Registration in UAE
Registration for VAT may seem daunting at first, but with planning, it is simple. Here is a step-by-step process.
Step 1: Determine Eligibility
The first step is to calculate your company’s estimated turnover. If you are above the compulsory or voluntary thresholds, you are entitled to apply through the FTA. Certain startups choose to register early in order to avoid delay once they begin trading.
Step 2: Get Required Documents Ready
You will need a collection of documents before you can start the online application:
- Copy of trade license.
- Certificate of incorporation or formation documents.
- Passport copies of the managers and owners of the company.
- Emirates ID of the authorized signatories or shareholders.
- Memorandum of Association (MOA).
- Bank account information of the company.
- Projected financial statements (in case of startups).
Step 3: Create an FTA e-Services Account
The FTA portal is where all VAT registrations occur. Someone representing the company needs to register an online account, which will be utilized when making applications, sending returns, and correspondence with the FTA.
Step 4: Complete the VAT Registration Form
Log in to the FTA portal and complete the VAT registration form. You will need to supply:
- Company details and business activities.
- Estimated turnover and spend.
- Import and export information (where applicable).
- Information of group companies (if registering in a VAT group).
Step 5: Make Payment and Submit Documents
Upload the necessary documents and submit your application. The FTA verifies the submission to make sure it is correct. Incomplete or erroneous information may delay approval, so double check before submission.
Step 6: Get Your TRN
Once approved, your business will be given a standard Tax Registration Number (TRN). You will then be able to charge VAT on sales, claim back input VAT credits, and file VAT returns from here.
Types of VAT Registration in the UAE
Businesses may be eligible for several classes of VAT registration depending on their type:
- Mandatory Registration – For businesses with taxable supplies of AED 375,000 or more.
- Voluntary Registration – For businesses with taxable expenses or supplies of AED 187,500 or more.
- Group Registration – For companies with multiple entities under common control, so that they can get registered collectively as a single VAT group.
Why Professional Support Matters
VAT registration is not just filling in a form, there is a necessity to understand tax rules and be accurate in returns. Mistakes are time- and money-consuming. With VAT professionals, startups gain:
- Professional guidance about whether it’s compulsory or voluntary registration.
- Assistance in preparing documents required.
- Effective FTA correspondence management.
- Compliance support on a continuous basis after the acquisition of the TRN.
For businesspeople, vat registration in UAE is completed quickly and accurately through a professional consultant, freeing up their time to focus on growing their business.
Frequently Asked Questions (FAQs)
How long does it take to get a VAT refund in UAE?
In general, the FTA reconciles VAT refunds within 20 working days upon receipt of a complete claim, though complex cases are not as speedy.
Can a business opt to carry forward the over-claimed VAT rather than reclaiming it?
Yes, businesses have the option of transferring unused VAT to offset future liabilities or requesting a refund, subject to cash flow conditions.
Can all input VAT be recovered?
No. VAT relating to personal expenses, entertainment, and certain car expenses cannot be recovered. Only business-related, FTA-approved expenses are recoverable.
If my VAT reclaim is refused by the FTA?
If refused, you can reapply once you’ve sorted out the matter or appeal against refusal with supporting paperwork. Our experts will help you.
Are non-resident businesses entitled to recover VAT in the UAE?
Yes, international companies with no registration for VAT in the UAE but levying VAT locally are entitled to claim refunds under specific FTA conditions.
