All legal entities in the UAE having a taxable turnover of AED 375,000 or more in last 12 months must register for VAT and avail the TAX Registration Certificate. The standard rate of VAT in the UAE is 5%, also some transactions are zero rated and some transactions are exempted from VAT. Generally, VAT is not an expense for TAX Registered Business, Tax Registered companies has the role of collecting tax on behalf of the government and pay the same to the government by way of filing the VAT returns
Who is eligible for VAT registration?
Are you eligible for VAT registration? Let’s check it out!
Any person involved in an economic activity is a taxable person, If the value of taxable supplies made by the person surpasses the registration threshold, then he or she must be registered under the UAE VAT. Thus, to confirm whether a person must register for VAT, one has to monitor the level of taxable supplies to ascertain whether the prescribed VAT registration threshold has been reached or not.
Here’s the classification of VAT Registration in the UAE:
Mandatory VAT Registration
Voluntary VAT Registration
Exemption from VAT Registration
For non-residents in the UAE, there is no registration threshold. Non-residents must register for VAT whenever they supply goods or services, unless the customer is required to account for the VAT under reverse charge.
Want to get VAT registration for your new company in the UAE?
If the taxable supplies and imports surpass the pre-defined registration threshold of AED 375,000, then your business must register for VAT. If the total value of its taxable supplies and imports exceeds the voluntary registration threshold of AED 187,500, then a business may register for VAT voluntarily.
The Requirements for VAT Registration in the UAE
The below mentioned documents are needed for VAT registration.
• Documents identifying the authorized signatory, e.g. passport copy, Emirates ID.
• Trade license copy of the company.
• Official documents authorizing the entity/individual to conduct activities within the UAE.
• Description of business activities.
• Turnover for the last 12 months in AED.
• Supporting document for 12-month sales.
• Expected turnover in next 30 days.
• Estimated value of imports for one year from each GCC countries.
• Estimated value of exports for one year to each GCC countries.
• Supporting documents for customs registration in each emirate, if applicable.
Once successfully registered, a VAT Registration Number is generated for the taxable person and the company.
Resources Mena is one of the leading VAT consultants in Dubai to offer all kind of VAT related services at a reasonable price and within the timeline. If you are looking for a reliable VAT consultancy in Dubai, we at Resources Mena are here to help you out. To ensure smooth VAT registration process, our team of experts will offer you the best service and guidance.
Contact us now and get the best VAT registration service in the UAE from Resources Mena, the top VAT consultants in Dubai!