How to apply for VAT Registration in UAE
Looking for a guide to VAT Registration in UAE? Your search ends here. This guide carefully covers all the important information about what is VAT, how to file a VAT return, the VAT registration process, and more.
In the United Arab Emirates, Value-Added Tax (VAT) registration is an indirect tax imposed on the use or consumption of goods and services at every point of sale. This law is in effect in over 180 nations worldwide. Although the final customer bears the expense, a business that is registered with the federal Internal Revenue Service serves as the government’s tax collector.
Taxable supplies and taxable suppliers of goods or services whose import value exceeds AED 375,000 are subject to mandatory registration in accordance with Federal Law No. (8) of 2017. However, if a taxable supplier fails to register with the federal tax authorities, it must pay a fine of Dh20,000.
However, a supplier of taxable goods or services may choose voluntary registration if his taxable supplies, imports or expenses exceed AED 187,500. Voluntary registration provides startups with the opportunity to register and transact business transparently.
In addition to legal compliance, VAT registration provides maximum benefits for your company.
because it enables companies to avoid paying her VAT and fosters a sense of ongoing transparency and growth. It will be helpful. H. Input Tax Credits for Claiming Refunds on Qualified Purchases or Expenses.
The deadlines and frequency, i.e. H. (monthly or quarterly) for filing the VAT return, are specified in the tax certificate, a legally required document issued after successful registration. The deadline for filing a VAT return is the 28th of the month following the end of the tax period.
In the UAE, registering for VAT requires three steps.
Following account establishment by investors or a business owner, a number of documents and details must be filed and submitted to the Federal Tax Authority in accordance with its three-step procedure. The following details the UAE’s VAT registration procedure:
Step 1: – Creating an e-Services Account
Log on to https://eservices.tax.gov.ae/en-us/
Creating an e-Services Account with a Username/Password
Verify your email address within 24 hours
Step 2: – Registering for VAT
Click Register for VAT
Complete all mandatory (marked with *) fields
Click Submit for Approval once to submit the form
Step 3: – Late Registration & Penalty Payment – (Applicable when Registration is Delayed)
To see the amount of the “Late Registration Penalty” indicated beneath the VAT Box, select the Dashboard tab.
Click on `Pay` button to proceed with payment
What is the Detailed List of Records and Information Needed for UAE VAT Registration?
Investors must give the relevant authorities the following necessary paperwork in order to obtain a VAT Certificate in the United Arab Emirates:
Documents identifying the authorized signatory e.g. passport copy, Emirates ID
Trade license copy of the company
Additional formal documents, such as a certificate of incorporation, articles of organisation, power of attorney, etc., granting the entity or individual permission to carry out operations within the United Arab Emirates.
Description of business activities
Turnover for the last 12 months in AED
Supporting document for 12-month sales
Expected turnover in next 30 Number of days
Estimated annual import value from each GCC country
Estimated annual export value to each GCC country
Whether you plan to do business with GCC suppliers or customers
Proof of customs registration in each emirate (if applicable).
Bank Account Details
Although the above process seems easy considering the technical requirements of free trade agreements, companies are still advised to seek professional or professional help. VAT registration services in the UAE can help you navigate the complex process smoothly.