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VAT Registration Service

VAT registration in Dubai UAE

VAT registration in UAE

Many countries have adopted the VAT system by now. It is an indirect tax that is collected on the goods and services consumed by a customer. The obligation of VAT collection lies on the business, and it has to remit the tax so collected to the Government. However, the first step is to do VAT registration.

UAE adopted VAT on 1st January 2018. On most of the goods and services, 5% VAT is charged, and some of the goods and services are subject to zero-rated tax. A few goods and services are exempt from VAT.

With the Tax registration in UAE, the compliance check also came into existence. The companies need to align their businesses in such a way that they always have error-free and updated books of accounts and organized tax-related documents. Check out 11 things to know about VAT in UAE

Therefore, you need the support of a consulting firm that has in-depth knowledge regarding various aspects of VAT. You can contact us for the VAT registration services or even check out our other VAT consulting services in UAE.

Which Businesses require VAT Registration?

Before registering for VAT in UAE, it is necessary to find out whether your business requires VAT registration or not.

A business can fall in any one of the following categories for the purpose of VAT Registration:

  • Businesses which need to do Mandatory VAT Registration
  • Businesses which have the option to conduct Voluntary VAT Registration
  • Businesses which are Exempted from VAT Registration

VAT Registration limit in UAE

In the case of Mandatory VAT registration, businesses have no option but to register for VAT. Such businesses have an annual turnover of taxable supplies of or above AED 375,000.

The second category, as per the VAT Registration threshold in UAE, has the option of whether it wants to register for VAT or not. Such businesses have an annual turnover of taxable supplies between AED 187,500 and AED 375,000

If your business’s annual turnover of taxable supplies is lesser than AED 187,500, you don’t need to register for VAT.

While calculating the value of taxable supplies and imports, one needs to exclude the value of exempt supplies.

Which Businesses require VAT Registration
Applying for VAT Registration in UAE

Applying for VAT Registration in UAE

The Federal Tax Authority (FTA) looks after managing and collecting federal taxes, fines, and applying tax-related procedures in the UAE. There is a UAE VAT Registration portal https://eservices.tax.gov.ae/ maintained by Federal Tax Authority (FTA) for facilitating UAE VAT registration online.

Accordingly, one has to create an e-service account on the FTA portal and follow the steps for completing the Tax Registration form. The same FTA UAE Login credentials enable one to amend VAT registration and also apply for VAT deregistration. While filling up the Value Added Tax Registration Form, ensure that you submit the accurate information.

One can also carry out VAT verification with his FTA UAE login. Read through https://nrdoshi.ae/trn-verification-steps-to-check-trn-validity/ to know complete procedures to carry out TRN verification in UAE.

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We checkout your VAT registration eligibility,
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Documents required for VAT Registration

Most of the companies have already registered for VAT. If you register for VAT in UAE now, it could be because of the increment in the annual turnover or you starting a new business or because of the addition of new products and services on which VAT is implied.

FTA VAT registration in Dubai or any other emirate requires a set of documents while conducting VAT registration.

  • A scanned copy of Trade License
  • Certification of Incorporation
  • Article of Association or Partnership Agreement
  • If you do not have any of the above documents, it is necessary to show documents that prove your ownership
  • If you own multiple trade licenses under the name of a single entity, all the trade licenses are required to be presented
  • Besides these details, a passport copy of the CEO or equivalent is mandatory.
  • If the CEO or equivalent is a UAE resident, his Emirates ID copy is required.
  • You also need to add proof of your annual turnover
  • If you are registered with the customs department of the UAE, it is mandatory to add the scanned copy of the Customs Number
  • How to register for VAT in UAE
Documents required for VAT Registration

As you can see, there are many documents involved in the VAT registration process. It may appear complicated, but if a trustworthy VAT consulting firm in UAE performs your VAT registration, you won’t face any issue. The Government has introduced a well-defined process to obtain a VAT number, and N R Doshi and Partners is thoroughly familiar to its every segment.

Creating an e-service account
Creating an e-service account

The first step is to create an e-Service account on FTA’s official website. The initial step is simple as you just need to provide the company email ID, generate a password, and sign-up.

Getting started with FTA registration Guide for VAT
Getting started with FTA registration Guide for VAT

Before starting with the UAE tax registration process, FTA provides the user with a guide that gives all the information regarding VAT. This guide could be helpful for VAT registration in UAE. However, the process becomes a bit complicated from the next step.

About the Applicant icon
About the Applicant

In the first selection, you need to select your business type. There are many options, and it is important that you select the correct one. If you are not sure that on what basis you are applying for VAT registration, contact us. We will take care of the entire process and documents requirement.

It is also necessary to provide information regarding the trade licenses you own. According to your annual turnover, you need to select whether you are conducting voluntary or mandatory VAT registration.

Details of the Applicant icon
Details of the Applicant

The next step requires the addition of primary details of the applicant, which are the name, identification, and detail of the CEO.

Contact Details icon
Contact Details

In this section, FTA requires you to provide the business contact details such as the address of the company and phone number. If you have multiple addresses, one needs to add the address of the headquarter. However, you will need the help of a tax agent in case if you are a foreign business registering for VAT UAE. In that case, the information of the tax agent will be added here.

Banking Details icon
Banking Details

You need to give detail of your bank account that is opened in one of the UAE banks. If your bank doesn’t provide an electronic payment facility, you can contact us for a bank account opening service.

Business Relationship
Business Relationship

Under this section, you would require details of all other UAE based businesses in which any of the directors are involved. You need to provide this information to FTA so that they can adequately track the VAT amount. If no director is involved in any other business, you can select “No” and proceed further.

About the VAT Registration
About the VAT Registration

It is one of the most complex steps where you need to provide all the necessary information related to your business. You cannot afford to provide any wrong information knowingly or unknowingly as it may lead to penalties. As you would not be familiar with VAT registration, there are chances of error. We would suggest that you rely on our expert tax agents for VAT registration. Information required to be provided in this section:

  1. Business activities of the applicant
  2. The total amount of the last twelve months’ turnover.
  3. Expected turnover in the Next thirty days.
  4. Imports and Exports Declaration
  5. Activities in any other GCC country
  6. Customs Registration Information
  7. Let FTA know if you wish to apply for exemption
Declaration icon
Declaration

Primary Details of Authorized Signatory are required to be added here along with the communication medium and preferred language.

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Review and Submit

After the whole process, you get the option to review the added information. You can make changes before submission if you find any error. However, taking our service will make the submission full-proof and saves you from penalties. It will also save your time required for registration.

VAT Group Registration in UAE

VAT Group Registration in UAE

Businesses sharing common economic, financial, and regulatory aspects may register as a VAT group. Such common aspects could be in the form of legal status, shareholding, or voting rights. They should have a business in the UAE and should be legal persons under common control. Such VAT registration in UAE is also known as a tax group registration.

A representative member of the group files a consolidated VAT return covering all the activities of the group, and hence it simplifies the accounting and compliance requirements. However, all members of the group remain jointly and severally liable for VAT debts. Further, all the supplies made within the tax group do not attract VAT.

VAT Registration amendments

If subsequent circumstances necessitate amendments in VAT registration, then they must be informed to FTA in 20 days from the occurrence of such circumstances. One would be able to make changes on the FTA portal itself. Still, some of the changes like details of the applicant, contact details, banking details of the applicant, business relationships, among others, require approval from FTA. The thing about VAT Registration in UAE is, changes like the business activities of the applicant, GCC activities section, customer registration information section can be quickly made without seeking approval from the FTA.

VAT Registration amendments

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Letting Us Do It for You

When a professional firm N R Doshi and Partners does VAT registration,
you can have a complete peace of mind.

VAT Deregistration

One can deregister as a Taxable Person if he is required or eligible to deregister. One can cancel his VAT registration on the FTA portal.

Penalties for failure to register for VAT in UAE

If a business that is required to go for VAT Registration in UAE fails to register for VAT in UAE within the timeframe specified by the UAE tax law, it will attract a penalty of AED 20,000.

NR Doshi Icon Why Choose N R Doshi and Partners?

N R Doshi and Partners has earned an excellent reputation because of our services and determination to provide the client with the best results. We are FTA registered tax agents, which makes our competency unquestionable. The UAE registered tax agents are aware of the laws and best practices related to VAT. Therefore, your business will have a minimal chance of having any compliance issues.

We are tracking VAT related information since the idea of VAT implementation was introduced. Even now, we keep a close eye on the updates related to VAT. We continuously share the information with our clients, which allows them to take the necessary steps without failing compliance.

In addition to VAT registration, we also offer a complete package which includes all the VAT related service. We are a one-stop solution to all your financial requirements. You can also reach us for accounting, auditing, and advisory services.

Our Strength

Our Strength

  • We remain attentive towards the government amendments and check if it affects VAT in any way. If the amendment is related to VAT, we provide our clients with the information that what they should do to be compliant with the new law. We also provide them the financial analysis describing the impact.
  • We have an excellent team which consists of experienced VAT consultants. Our team members have worked with companies belonging to different sectors. Therefore, their knowledge is incomparable and our biggest strength.

VAT Registration Service
Now, No Long and Tedious Process

Our tax agents will handle the entire process for you,
saving your time and resources.

Testimonials: VAT Registration Service

We had an issue while conducting VAT registration. Somehow, instead of a group registration, we conducted individual registration, which required us to file individual returns for each company. We were not aware of how to conduct the VAT registration again for our whole group. N R Doshi and Partners came to our rescue and took all our VAT-related responsibilities. We relied on them, and they saved us from further issues. Considering this, we took the benefit of all their VAT related services, which gave us ample amount of time to concentrate on other essential business functions.
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There is nothing more satisfactory than choosing the right consultants. NRD played an essential role in making the business successful. We contacted them before 2018 for the VAT registration service. They provided us with great consultation and affordable VAT registration service. Now we also use their accounting and forecasting services, which are equally good.
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FAQs: VAT Registration Service

What is Value Added Tax (VAT)?

Value Added Tax (VAT) is a kind of indirect tax. Businesses collect VAT at each stage in the supply chain, and it is the customer who bears the tax.

Why should a business register for VAT?

A VAT registered business can take benefit of input VAT paid on purchases and expenses. Further, non-registration amounts to a violation of the law, and it attracts penalties.

What is a Taxable Person?

A Taxable Person is anyone who carries out a specific economic activity and is registered under the VAT law in UAE or required to be registered under the law.

What are taxable supplies?

Taxable supplies include a supply of goods and services for a consideration in the course of conducting business in the UAE, and it does not include exempt supply. Taxable supplies include standard-rated supplies @ 5%, zero-rated supplies @ 0%, reverse charged services received, and imported goods.

My turnover of taxable supplies is less than AED 300,000, but I am expecting it to cross AED 375,000 in the current financial year. Do I have to register for VAT?

Yes, you should go for voluntary VAT registration in UAE. A person can voluntarily register for VAT if his turnover crosses AED 187,500. Further, anyone who is expecting taxable turnover to cross AED 375,000 in the next 30 days is required by the law to register for VAT. It is important to note here that VAT registration is mandatory if the taxable turnover exceeds AED 375,000.

Do zero-rated supplies count towards the AED 375,000 VAT threshold?

Yes, zero-rated supplies do count towards AED 375,000 VAT threshold. You have to calculate your taxable turnover accordingly.

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Is it necessary to add information of all the business partners of an LLC Company?

Yes, while providing the applicant details, you need to add the information of all LLC Company directors.

What should I do if my VAT registration application gets rejected?

There could be several reasons why your VAT registration application got rejected, such as annual turnover is lesser than the threshold value, mismatch in the information, etc. Therefore, we suggest contacting a reliable tax agent who can guide you through the process.

What are the obligations of a VAT Registered business or taxable person in UAE?

  • A VAT-registered business must charge VAT at the applicable rate on taxable goods and services.
  • It can claim the input tax credit for VAT paid on business-related goods and services. VAT paid on entertainment, personal, and employee-related expenses can not be reclaimed.
  • It must maintain proper records for the Government to check.
  • It must pay VAT to the Government
  • It has to file the VAT return periodically

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