Value Added Tax (VAT) compliance and audits are crucial aspects of running a business in…
If you are looking for VAT Registration in UAE, we will make it simple. Yes you read it right VAT registration in UAE is now simplified. If you are a new establishment or an existing one, we will access applicability of VAT on your business and advise you accordingly.
Let us brief you about VAT legislation, criteria for VAT registration and exemption from VAT;
Value Added Tax or VAT was introduced in UAE on 01 January 2018. The standard rate of VAT in UAE is 5% and applies on taxable goods and services. On the other hand VAT rate on exports and some specified goods and services is 0%. Business and individuals can register their business in UAE under VAT on following criteria’s:
1) Mandatory Registration : A business or individual must register for VAT, if there taxable supplies and imports exceed AED 375,000 in last 12 months or expected to exceed in next 30 days.
2) Voluntary Registration : A business or individual may opt for VAT registration, if there taxable supplies and imports exceed AED 187,500 in last 12 months or expected to exceed in next 30 days but less than mandatory limit of AED 375,000.
Business or individual are not allowed to do VAT registration If their taxable supplies and import are less than AED 187,500 in last 12 months or not expected to exceed in next 30 days.
And the businesses or individuals may apply for exemption from VAT registration if they are making only Zero rated supplies.
If your business is falling under mandatory criteria for VAT registration, you should apply for VAT registration within 30 days of exceeding the threshold limit of AED 375,000 to avoid administrative penalty of AED 20,000 for late VAT registration.
Documents requirement for VAT registration in UAE:
- Business Trade License or Commercial License copies
- Passport copies of the owner or partners of the company mentioned on the license
- Emirates ID of the owners/ partners of companies (as per the business license) Memorandum of Association (MOA)/ Article of Association.
- Certificate of Incorporation / Formation for Free Zone Companies.
- Complete Company Address with PO Box Number.
- Company Representative / point-of-contact from the company with email, UAE mobile number.
- Company Bank Details including IBAN in UAE.
- Details other commercial entities of the owners/partners (if any)
- The Monthly income statement / Turnover declaration for the last 12 months (Signed & Stamped by the owner or the manager as per the license) with 5 sample invoices.
- Amount of the expected revenue, turnover, and expense for the next 30 days after VAT implementation with supporting documents such as local purchase order, service agreement, invoices etc.
- To specify if any kind of export or import activities carried by the company (if any)
- Provide the custom code along with the copy of Dubai Custom Code Certificate (if any)
- Indicate names of all GCC countries the company has business relations or expecting in future.
- Specify if your company would like to be registered as a tax group for all the entities or separate tax numbers for each.
Additional documents or authorization may be required depending on your business activity, the jurisdiction of business and other such factors.
Approval of VAT Registration application takes 1 to 20 working days. Standard timeline as per Federal Tax Authority to take decision on VAT Registration application is 20 working days.
If You’ve got questions, and we have answers. Just send us a message and one of our knowledgeable support staff will be in contact with you within 48hrs – even on weekends and holidays.
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