Starting for 1 January 2018, the Government has introduced Value Added Tax (VAT) at a standard rate of 5% applicable to most goods and services in the UAE. VAT registration is a process of listing the business with the Government. Once a business is registered, it will become eligible for the return of VAT. Businesses will get VAT registration in the form of a VAT certificate containing a unique Tax Registration Number (TRN). This number will be essential for all the tasks to be carried out for VAT in UAE.
Who can or will be able to register for VAT
A business must register for VAT if their taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 and may choose to register for VAT voluntarily if their supplies and imports are less than the mandatory registration threshold, but exceed the voluntary registration threshold of AED 187,500.
To register for VAT, knowledge of tax legislation and procedures is required. Without it, registration application can be interrogated or rejected which will significantly delay business operations. Therefore, many businesses outsource this task to specialists who can assist in the entire registration and compliance process.
Our firm provides a simple, personalized and cost-effective service. Business entities will not be required any deep knowledge of VAT laws and can benefit from our VAT expert team to obtain the VAT number and other registrations as quickly as possible.
Our services will include the following:
- Guidance on the Documentation required for VAT registration
- Review of all relevant registration material
- Preparation and submission of application forms
- Coordinating with the tax authorities for all correspondences
Documentation requirements for VAT Registration
The process of registration is done online. After online VAT registration, business entities will get Tax Registration Number (TRN) from Federal Tax Authorities (FTA) within 2-3 weeks. Further, to get the hard copy of the tax certificate, business entities will pay an amount of AED 500 and FTA will deliver the certificate by courier to the given address.
Following documents shall be required for VAT Registration:
- A copy of the trade license
- Memorandum of Association
- A copy of the owners/partners/directors’ passports
- A copy of the owners/partners/directors’ emirates IDs
- The registered address of the business (complete address & P.O Box)
- Concerned person contact details
- Email of the concerned person
- Bank Details including IBAN
- Does the owner have any other entities?
- Income statement for the last 12 months (Signed & Stamped by the owner or the manager)
- Expected revenue and expense for the next 30 days after VAT implementation
- Is the business is engaged in import and export?
- Is the entity dealing with any custom department? If yes. What is the custom code? along with the Copy of Dubai Custom Code Certificate
- Is the entity doing business with any GCC country? (Country name)
- If representing more than one entity, whether wants one tax group number for all the entities or separate tax numbers for each
- Experience of business (Owners or directors involved in any previous businesses before for the last 5 years?)
We would be delighted to discuss how we can help your group or company in the VAT Registration or income tax in UAE. Please get in touch with UAE VAT and contact us at email@example.com or contact our FTA office Dubai directly.