Key Aspects of VAT Compliance for Businesses in the UAE
Non-compliance with UAE VAT legislation can result in penalties. This article provides a comprehensive overview of the key VAT compliance requirements for businesses in the…
Vat Registration Services In in Dubai
Compliance with VAT laws in the UAE is essential for businesses. No matter if you are starting a new business or are already in operation, VAT registration in UAE is mandatory for all enterprises whose turnover exceeds the threshold of AED 375,000. Value Added Tax (VAT) is an indirect tax levied on most of the goods and services in the UAE. VAT was introduced in the UAE on 1st January 2018. The rate of VAT is 5 per cent.
We offer a hassle free VAT registration service in Dubai that will take you through the process step by step in order to avoid fines and ensure that your business runs smoothly. We offer expert VAT consultancy services in the UAE to help businesses register, comply and even manage their VAT filings. Our VAT registration services in Dubai make sure that the process is easy and simple for businesses. We also ensure that your business is in compliance with UAE tax regulations.
Allow us handle your VAT registration in the UAE including Dubai to enable you to concentrate on enhancing your business.
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VAT Registration UAE Online
Follow the following steps for VAT registration process online through the EmaraTax platform without any difficulties:
- Sign-Up for an EmaraTax Account: To register for VAT in the UAE using the EmaraTax platform, first, create an EmaraTax account on the Federal Tax Authority (FTA) website. After the registration process, you need to activate your account through the verification email that will be sent to your email address.
- Access the EmaraTax Dashboard: As soon as your account is activated, log in with your details and go to the EmaraTax account dashboard.
- Create New Taxable Person Profile: In the next step, develop a new Taxable Person Profile by completing the business information form.
- View Taxable Person Account: As soon as the profile is set up, open the Taxable Person Account by clicking on “View.”
- Register for VAT: To continue with the VAT registration, click on “Register” under “Value Added Tax”. You will then be required to fill in the VAT registration form with the required details.
- Complete the Registration Process: After checking through all the information and making sure that it is correct, submit your application through the portal. Last, make the payment of any applicable fees online and get your VAT certificate from the FTA after your application is successful.
Step-By-Step Guide: VAT Registration Process in Dubai, UAE
The process of registering for Value Added Tax (VAT) in Dubai, UAE is a process that is regulated by the Federal Tax Authority (FTA). Here are the steps which will make it easier for you to register for VAT:
Step 1: Determine Eligibility
- Mandatory Registration: It is mandatory to register for VAT if the business has made taxable supplies and imports that exceed AED 375,000 in the last 12 months or are likely to exceed this amount in the next 30 days.
- Voluntary Registration: A business may apply to register if it does not meet the mandatory registration criteria if:
- The total value of its taxable supplies and imports or taxable expenses in the previous 12 months exceeds the voluntary registration threshold, or
- The business anticipates that the total value of its taxable supplies and imports or taxable expenses will exceed the voluntary registration threshold in the next 30 days.
- The voluntary registration threshold is AED 187,500.
Step 2: Gather Necessary Information
Before you start the registration process make sure you have all the information and documents needed. Some of the documents that may be required include business licenses, identification documents, financial records and other relevant documents.
Step 3: Create an EmaraTax Account
- First, go to the official website of the FTA: tax.gov.ae.
- This will direct you to the sign up page where you can create a new account.
- Sign up for an account using a valid email address and a strong password.
- The only thing you have to do to activate your account is click on the verification link you will receive in your email.
Step 4: Access the EmaraTax Dashboard
- Sign into your EmaraTax account or create an account if you haven’t already and then log in.
- At the top of your dashboard, you will be able to find links to different tax related services.
Step 5: Create a Taxable Person Profile
- On the dashboard, click on ‘Create New Taxable Person Profile’ to create a new taxable person profile.
- Fill in details about your business including legal name, trade license information and contact information.
Step 6: Initiate VAT Registration
- Go to your Taxable Person Profile and click on ‘View’ to access the account.
- Go to the ‘Value Added Tax’ section.
- Select ‘Register for VAT’ to start the VAT registration process.
Step 7: Complete the VAT Registration Form
- The registration form is divided into the following parts:
- About the Applicant: This section includes details on the business name, trade license number, and contact information.
- Details of the Applicant’s Business: In this part, you are required to explain the business activities of the company, the expected sales, and any information concerning imports and exports.
- Bank Details: In this field, enter the bank account details of your company.
- Business Relationships: Show any business link with other persons or legal entities if possible.
- Declaration: We declare that all information provided to the FTA is true and correct.
- Make sure that all the fields that are marked as required are completed correctly.
- Ensure that all the files to be uploaded are in the allowed formats (PDF, JPG, PNG, JPEG) and each file is not larger than 5MB.
- Check through all the information that has been entered for accuracy.
- Submit the application for approval to the FTA.
Step 8: Await Approval and Receive Tax Registration Number (TRN)
- Once the application is submitted, the FTA will process the application.
- When you are approved, you will be issued with a Tax Registration Number (TRN) which is your VAT number.
Post-Registration Compliance
- VAT Invoicing: Make sure that all the invoices that you will be producing will be VAT compliant and must have your TRN and other required details on the invoice.
- Record Keeping: It is recommended to compile detailed accounts of all the financial transactions such as sales, purchases, and VAT collected and paid.
- VAT Returns: Make sure to file VAT returns to the FTA portal. The standard Tax Period applicable to a Taxable Person shall be a period of three calendar months and the returns should be submitted within 28 days from the end of your tax period.
- VAT Payments: You should pay all the VAT that is due to the FTA to avoid incurring fines.
Through the provision of these steps, businesses will be in a position to comply with the UAE VAT regulations to avoid incurring fines.
Documents Required for VAT Registration in UAE
Here is a list of documents which may be required for VAT Registration in UAE:
1. Required Documents for All Applicants:
| Document | Description |
| Valid Trade License(s) | Official license(s) authorizing your business operations. |
| Passport/Emirates ID of Authorized Signatory(s) | Identification documents of individuals authorized to act on behalf of the business. |
| Proof of Authorization for Authorized Signatory(s) | Documents such as a Power of Attorney confirming the authority of the signatory(s). |
| Contact Information | Up-to-date contact details of the business, including address, phone number, and email. |
| Bank Letter Validating Bank Account Details | An official letter from your bank confirming your business’s bank account information. |
2. Additional Documents Based on Registration Basis:
| Registration Basis | Additional Documents | Description |
| Taxable Supplies (Applicable for all legal types except Federal and Emirate Government) |
– Audit report or financial statement (audited or non-audited) – Self-prepared calculation sheet detailing taxable/zero-rated supplies – Revenue forecast with evidence (e.g., Local Purchase Order or Contract) – Monthly turnover declaration signed and stamped by the authorized signatory – Supporting financial documents (e.g., invoices, LPOs, contracts, title deeds, tenancy contracts) |
Documents demonstrating the value and nature of taxable supplies made by the business. |
| Taxable Expenses (Applicable for all legal types except Federal and Emirate Government) |
– Audit report or financial statement (audited or non-audited) – Expense budget report |
Documents detailing the business’s taxable expenses. |
3. Other Relevant Documents (If Applicable):
| Document | Description |
| Articles of Association/Partnership Agreement | Foundational documents outlining the business structure and agreements. |
| Certificate of Incorporation | Official certificate confirming the formation of the company. |
| Ownership Information | Documents detailing the ownership structure of the business. |
| Customs Details | Information related to customs registration, if the business is involved in import/export activities. |
| Power of Attorney Documents | Legal documents granting authority to individuals to act on behalf of the business. |
| Club, Charity, or Association Registration Documents | Registration certificates and supporting evidence for entities registered as clubs, charities, or associations. |
| Copy of the Decree | Applicable for Federal UAE Government Entities or Emirate UAE Government Entities. |
| Emirates ID and Passport Copies | Identification documents of the manager, owner, and senior management. |
| Land/Property Title Deed | Proof of ownership for any land or property held by the business. |
Importance of VAT Registration
There are several reasons why VAT registration in the UAE is essential for businesses:
- Legal Compliance: This is to ensure that businesses do not incur fines for non-compliance with the set threshold.
- Tax Collection: To enable businesses to collect VAT from goods and services that are subject to VAT.
- Input Tax Recovery: Businesses that are registered can offset the VAT that they have already paid on their purchases
- Business Credibility: This is in line with the legal compliance and contributes to the overall reputation and credibility of a company in relation to VAT laws in the UAE.
- Participation in the UAE Market: This is to facilitate business transactions with other companies that are VAT registered.
VAT Registration Requirements in Dubai, UAE
Mandatory Registration
It is mandatory for businesses to register for VAT in the following cases:
- The total value of its taxable supplies and imports exceeds the mandatory registration threshold over the previous 12 months, or
- The business anticipates that the total value of its taxable supplies and imports will exceed the mandatory registration threshold in the next 30 days.
- The mandatory registration threshold is AED 375,000. This threshold is not applicable to foreign businesses.
- Non-UAE-resident businesses who make taxable supplies in the UAE must also mandatorily register for VAT, regardless of the value of its taxable supplies and imports, where there is no other person obligated to pay the due tax on these supplies in the UAE.
Voluntary Registration
A business may apply to register if it does not meet the mandatory registration criteria and:
- The total value of its taxable supplies and imports or taxable expenses in the previous 12 months exceeds the voluntary registration threshold, or
- The business anticipates that the total value of its taxable supplies and imports or taxable expenses will exceed the voluntary registration threshold in the next 30 days.
- The voluntary registration threshold is AED 187,500.
VAT Registration Fees in UAE
- In the United Arab Emirates (UAE), it is free of cost to get registered for Value Added Tax (VAT) with the Federal Tax Authority (FTA).
- The cost of obtaining a VAT registration certificate in the UAE is AED 250. This is only applicable if you require a hardcopy of the certificate.
- Where the Taxable Person fails to submit an application for VAT registration within 30 days of being required to register, he or she shall be liable to pay a penalty of AED 10,000.
Note: Although the FTA does not charge for VAT registration, it is usual for businesses to seek professional advice from consultants to ensure that they meet the requirements for registration correctly. Therefore, it is important to know an exact fee for the services offered by such professionals as it depends on the business size and the complexity of the case.
For an accurate fee structure, please contact our VAT Consultant team today.
Benefits of Choosing Our VAT Registration Services in UAE
Our VAT consultancy services in Dubai make sure that your business is VAT compliant in Dubai. We provide:
- Expert Guidance: All the registration process is handled by our VAT experts.
- Ensuring Compliance: We make sure that your business complies with all legal VAT registration requirements.
- Time-Saving Process: Our quick and hassle free service will save you time and avoid lengthy procedures.
- Support for VAT Filing & Returns: We also help in VAT returns, records, and compliance management.
- Avoiding Penalties: We also assist businesses to avoid fines that are not necessary through non-compliance.
FAQs: VAT Registration UAE
Why is VAT registration mandatory in the UAE?
VAT registration is compulsory for those enterprises which have turnover more than AED 375,000. It helps in adhering to the UAE tax laws and regulations and also enables businesses to collect VAT on taxable sales.
Who needs to register for VAT in the UAE?
UAE-resident businesses who make taxable supplies in the UAE must mandatorily register for VAT provided the value of their taxable supplies and imports exceeds the mandatory registration threshold of AED 375,000. Non-UAE-resident businesses who make taxable supplies in the UAE must also mandatorily register for VAT, regardless of the value of its taxable supplies and imports, where there is no other person obligated to pay the due tax on these supplies in the UAE.
UAE-resident businesses who make taxable supplies in the UAE may voluntarily register for VAT if the value of their taxable supplies and imports, or taxable expenses exceeds the voluntary registration threshold of AED 187,500.
How can I register for VAT in Dubai, UAE?
You can register for VAT online through the FTA e-Services portal by first creating an account, then preparing the application and attaching the necessary documents.
What happens if I don’t register for VAT?
Non-compliance with VAT registration laws can lead to fines of AED 10,000.
What is VAT, and why is it required in the UAE?
Value Added Tax or VAT is a tax on the consumption or use of goods and services. It was introduced in the UAE on 1st January 2018. The VAT rate is 5 per cent. VAT will provide the UAE with a new source of revenue which will continue to be utilized to provide quality public services. It will also allow the government to move towards its objective of lesser dependence on oil and other hydrocarbons as a source of revenue.
Can I register for VAT voluntarily?
Businesses which generate revenue between AED 187,500 and AED 375,000 are allowed to opt for voluntary VAT registration.
How long does VAT registration take?
The FTA takes 20 business days on average to process VAT registration applications.
Do I need a local office in the UAE to register for VAT?
You don’t need a local office in the UAE to register for VAT. VAT registration is also available to foreign businesses in the UAE. The process can be done online via the Federal Tax Authority’s (FTA) EmaraTax platform.
Do freelancers and sole traders need to register for VAT?
Yes, if their taxable income exceeds AED 375,000 in a year.
Can a foreign business register for VAT in the UAE?
Yes, non-UAE-resident businesses who make taxable supplies in the UAE must also mandatorily register for VAT, regardless of the value of its taxable supplies and imports, where there is no other person obligated to pay the due tax on these supplies in the UAE.
What happens after VAT registration?
Once a business is registered with VAT in UAE, it must charge all taxable goods and services at a rate of 5%, raise VAT compliant invoices, keep the financial records for at least five years, file VAT returns on a quarterly basis through the Federal Tax Authority portal, pay any VAT due on or before the filing deadline and is entitled to claim VAT on eligible business purchases.
What is VAT group registration, and how does it work?
VAT group registration in the UAE is where the FTA registers a group of persons as one taxable person. This makes the handling of VAT easier as the group is able to file one consolidated VAT return and gets one Tax Registration Number (TRN). It also simplifies the procedures, cuts down on the administrative inconvenience and may also enhance the group’s cash flow.
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