VAT Registration Dubai, UAE | Register For VAT

VAT Registration UAE

Value Added Tax (VAT) is a tax imposed on supply of goods and services. VAT is charged at every level of the supply chain. The UAE has introduced VAT on January 1, 2018, at a rate of 5%. Businesses which have the sales or expenses of AED 375,000 or more are required to register for VAT on mandatory basis (or else) Businesses which have the sales or expenses of AED 187,500 or more can opt for VAT registration on voluntary basis

Voluntary VAT Registration in UAE

Companies can register for VAT in the UAE if they have a place of business in a UAE state and have supplied goods worth more than AED 187,500 to member states in the previous 12 months. Furthermore, companies can register online under the UAE VAT Registration if they anticipate that within the next 30 days, the total value of their supplies will exceed the voluntary VAT Registration threshold of AED 187,500.

Mandatory VAT Registration UAE

Companies must register for VAT in the UAE if they have a place of business in a UAE state and have supplied goods worth more than AED 375,000 to member states in the previous 12 months. Furthermore, companies must register online under the UAE VAT Registration if they anticipate that within the next 30 days, the total value of their supplies will exceed the mandatory VAT Registration threshold of AED 375,000.

Understanding the FTA’s VAT Registration and Refund Process in the UAE

VAT registration UAE simple manner permits a company or an individual to collect the tax on behalf of government from the customers on their purchase or expenses.

VAT refund in UAE allows the companies and individuals to reclaim the VAT paid on eligible expenses when their input tax exceeds the output tax in that particular tax period. For example, if the tax paid on purchases (input tax) is higher than the tax collected on sales (output tax), the excess amount can be reclaimed through a VAT refund.

How can I register for VAT in the UAE?

VAT registration is simple.

The following steps need to be observed to register a company or an individual for VAT within the UAE

Create an Account at the FTA Website.

The first step for VAT registration process is to create an account on FTA website. Businesses can create an account by providing their primary details, such as “Name, E-Mail ID and Mobile number”

Submit the required documents.

Once the account has been created, companies need to upload the required files and details to complete the VAT registration process.

Wait for Approval.

After uploading the required files, companies need to wait for approval from the FTA. Once the request has been approved, the enterprise will obtain a notification confirming that FTA had approved its request.

Introduction to UAE VAT Registration

If a company’s or an individual’s sales or expenses in the last 12 months have crossed particular threshold value or anticipated to exceed the particular threshold value in the next 30 days, they are eligible for vat registration dubai.
If a business or individual only makes exempt supplies, they may apply for VAT exemption registration.

Who needs to Sign Up for VAT Registration in UAE?

Are all the companies and individuals needs to register for VAT? No, only those companies or individuals meet the required yearly total sales criteria are eligible to register for value-added tax. The company may register on any one of the following categories based on the its sales value and supplies (Taxable or Exempt).
Companies must register for VAT in the UAE if they have a place of business in a UAE state and have supplied goods worth more than AED 375,000 to member states in the previous 12 months. Furthermore, companies must register online under the UAE VAT Registration if they anticipate that within the next 30 days, the total value of their supplies will exceed the mandatory VAT Registration threshold of AED 375,000.

VAT Group Registration

What is VAT group Registration?

VAT group registration allows two or more business entities to have registered as a single taxable entity. These businesses must comply with certain eligibility criteria to be allowed to form a tax group. One single VAT Tax Registration Number (TRN) will be issued for each entities of that tax group, to be used by all of its members, and the group must file only one tax return collectively.

Natural persons (i.e. Individuals) are not allowed to create or join a tax group

While grouping the multiple entities under a single tax group, all those individual entities must carry a common legal type (i.e. LLC)

VAT Group Registration Benefits

The advantages of VAT group registration for companies are as sollows: 

Each VAT group entity will be regarded as "one" Tax Registration Number (TRN) entity. As a result, businesses will find it easier to account for VAT. They need to prepare and submit compliance reports, like VAT returns, at the group level as opposed to the entity level.
The VAT does not apply to any supplies made by the VAT group entity. This implies that there will be no VAT applied to supplies made between VAT groups. Goods supplied by the VAT group to organizations outside of the VAT group, however, are liable to VAT