VAT Registration UAE
Individuals and businesses making a taxable supply of AED 375,000 or more in the last 12 months will need to register for VAT in the UAE within 30 days from the date of achieving such turnover. This is a mandatory requirement and not registering for VAT within the required time will attract a penalty from the Federal Tax Authority.
If the taxable turnover for the last 12 months is above AED 187,500, the businesses may apply for voluntary registration, in this case, the VAT Registration is optional.
If the taxable expenses of the businesses are above AED 187,500, in this case also the business may apply for optional VAT Registration.
Benefits of VAT Registration
The benefit of VAT registration is that the businesses may claim the VAT they have paid to their suppliers. For a non-VAT registered business, the VAT paid to their suppliers cannot be claimed back and the VAT amount needs to be considered as their business expenses.
VAT registration will also give more credibility and goodwill for the company. If you are not VAT registered, your clients may evaluate you as a small business and maynot do business with you due to the credibility concerns
VAT Certificate UAE
The registration will be in the name of the Legal entity and a tax registration certificate will be issued immediately after completion of successful registration.
It is always recommended to use the services of a Professionally Certified VAT consultant for VAT registration, they can check your financial records and confirm whether your business needs to apply for VAT Registration as well as the documentation requirements.
Once registered, businesses are required to charge VAT on all taxable supplies of goods and services made in the UAE. The standard VAT rate in the UAE is 5%, and businesses are allowed to claim credit for the VAT they have paid on their inputs. Also, the businesses have to follow the VAT regulations and ensure that the invoices are issued in compliance with the VAT law/regulations.
Documents for Vat Registration UAE
To register for Value-Added Tax (VAT) in the United Arab Emirates (UAE), businesses must provide the following documents to the Federal Tax Authority (FTA):
- A valid Trade License
- A valid Passport Copy and Emirates ID for each owner and manager of the business
- The company’s memorandum of association and articles of association
- The company’s incorporation certificate/ share certificate
- A registered email id and mobile number
- The name and contact information of the company’s authorized representative in the UAE
- Bank Details of the company
- Details of Import Code (If applicable)
- Declaration of turnover/ taxable expenses of the company as per the format shared by the Federal Tax Authority
- Sample Invoices/supporting documents
Importance of using the services of a Professional Tax Consultant
It is always recommended to use the services of a Professionally Certified VAT consultant for VAT registration, they can check your financial records and confirm whether your business needs to apply for VAT Registration as well as the documentation requirements.
If you have any questions about VAT registration in the UAE, please contact our team of experts at Resources Mena Tax Consultancy, top-listed vat consultants in Dubai, UAE.
Toll-Free- 800 5221
Landline- +97155 9744312 (if you are calling from outside UAE)
Whatsapp- +97155 9744312
Email- info@resourcesmena.com