Steps and Requirements for VAT Registration in UAE

VAT Registration in UAE allows businesses to pay and reclaim tax. After the implementation of VAT in UAE, all companies’ financial records are accurate and up to date as per the guidelines set by the Federal Tax Authority. The main aim of introducing VAT in the country is to provide a new source of income which will be utilized to provide high-quality services to general public service.

It will further help the government to reduce dependence on oil and other hydrocarbons as a source of revenue.

Also Read: Applicability of VAT on commercial property and real estate in UAE

Business who have registered VAT means they are certified by government as a supplier of goods and services and are entitled to collect VAT from customers and dispatch the same to the government.  The process of VAT registration involves

  •  Check your eligibility to register for VAT in UAE

There are some conditions to register for VAT in UAE and they are as follows:

  • If the value of taxable supplies and imports exceed AED 375,000, business is required to register for VAT.
  • If taxable supplies are from AED 187500 to AED 375000, then a business can undergo for voluntary VAT registration.

If you want to know more about the threshold limits or unsure about whether to register for VAT, you can seek the advice of a VAT expert in UAE.

  • Compile documents to be submitted for VAT registration

Documents required for VAT registration in UAE are as follows:

  • Copy of business trade license
  • Copy of the passports of the owner or partners of the company mentioned on the license.
  • Complete address of the official company location
  • Memorandum of association of the company
  • Bank account details of the company
  • Detailed view of the turnover of the company

Documents required may vary depending upon the kind of activity carried out by the applicant or business.

  • Register VAT with the help of VAT experts

Tax agents in UAE can help ensure all the procedures of VAT registration is done accurately for approval by FTA. For registration of VAT a taxable person has to furnish below mentioned information to a VAT expert in UAE

  • Business information of the applicant for VAT registration

Applicant should provide all information to UAE tax agents including the business type, trade license from authorized issuing body and other relevant details. It is also required for the applicant to provide the registered tradename of the applicant.

  • Contact details

Applicant should also provide the contact details of the business. If a business has multiple address, then the details must be provided as per the place where the majority of the day to day activity is conducted.

  • Bank details

When furnishing the bank details, the bank account should be from an established bank in UAE, and the account name should match the legal entity name to be registered with Federal Tax Authority.

  • Business affiliations

If the applicant is involved in any other business in the UAE for the past five years, you will be required to submit documentation that reflects the role of said business

  • Activities of the business

The applicant also has furnished details regarding the legal entity’s business activity. This section requires to submit including the evidence that justifies declared turnover value.

  • Communication preference and authorized signatories

Furnish the details regarding authorized signatories and business communication preference including preferred language and mode of communication.

VAT Registration for Tax groups

VAT group registration is a tax registration process where two or more individual business parties form a group. It is very important for businesses to understand the conditions of VAT group registration, determine the eligibility and accordingly opt for VAT group registration. You may seek the help of a tax expert to know the eligibility criteria for registration of a VAT group.

After providing the above-mentioned details to a tax expert, they will forward all the information to FTA which will scrutinize the information and provided send a notification of approval. After the approval, the entity is registered for VAT in UAE and receives a TRN and VAT registration certificate stating the number. This number would be used to identify you and your business among the other businesses.

As per Federal Tax Authority, taxable person also requires additional documents or authorization depending on the business activity, the jurisdiction of business and other such factors.

The FTA requires businesses to complete all the procedures of VAT registration. All the documents regarding registration should be submitted properly. If you are not sure how to get it done or if you are still unsure about the documents required for VAT registration in Dubai, talk to VAT consulting firms in UAE.

Tax experts in UAE have a comprehensive solution for UAE VAT registration and will help you throughout the process of registration. Tax consultants can ensure that the VAT registration process is easy to understand. They provide complete guidance in terms of VAT registration.