VAT Registration in UAE
UAE VAT Registration
All businesses with annual revenue of Dh 375,000 or more are required to submit their UAE VAT registration online applications within 30 days of being required to be registering. As per the regulatory Authority Federal Tax Authority Registration (FTA), all businesses in UAE must ensure the recording of their financial transactions, apart from that requirements of registration of VAT have done and ledgers are updated in time to avoid penalties.
Have your Business Registered for VAT in a few easy steps!
After the implementation of VAT in UAE on 01 January 2018, it started sending people into preparation for registration of VAT in Dubai, UAE, and VAT accounting. Like many of our clients, you can also welcome this tax in UAE regime with the assurance of having Farhat Office & Co. guiding you each step of the way.
The standard VAT rate of 5% is agreed to be charged on certain goods and services in the UAE, however, it may vary in some cases. Non-taxable goods and services will not be charged, such as health, education, and local transport, etc.
VAT Registration Process in UAE - Documents required for Registration of VAT in UAE
For a businessman applying for a UAE VAT registration certificate as an individual, the following are needed:
- Request letter with signature of Applicant’s
- The resident permit of Applicant’s
- Passport copy of the Applicant’s
For businessmen registering as an authority, the requirements are as follows:
- Decree copy
- Application letter with authorized signatory
- Act of incorporation copy
The requirements for a Dubai based business registering for VAT are as follows:
- Applicant’s application letter signed by the company’s authorities
- Trading license copy
Other Requirements of VAT Registration in Dubai, UAE
As per the Federal Tax Authority (FTA), the following business are the ones who should and can apply for VAT in UAE registration :
- if annual turnover is more than AED 375,000 (a must registration)
- The annual turnover is between AED 187,500 and AED 375,000 (optional registration)
- Annual turnover is less than AED 187,500 (registration not required)
There are a couple of listed violations and respective penalties that released in the provisions of Cabinet Decision No. 40 on Administrative Penalties for Violations of Tax Laws in the UAE that is adopted by the UAE Council of Ministers. Every single violation against the Federal Law No. 7 of 2017 on Tax Procedures, Federal Decree-Law No. 7 of 2017 on Excise Tax, and Federal Decree-Law No. 8 of 2017 on Value-Added Tax (VAT) shall fined in accordance with the provisions in the Cabinet Decision No. 40.
In order to avoid being penalize, it is better to follow the laws laid down by the FTA and the government.
Types of UAE VAT Registration
A) Mandatory VAT Registration
Any business is require to get register if they fall into the following classifications:
- For over the 12-month period, the taxable supplies of the business go beyond the mandatory registration threshold, or
- The business also expects to make taxable supplies in the next 30 days that will have a value that is more than the mandatory registration threshold, or
- The amount of mandatory registration threshold is AED 375,000.
B) Voluntary VAT Registration
Any business that doesn’t meet the mandatory registration criteria and falls into the following classifications may opt for a voluntary registration:
- In the previous 12-month period, their taxable supplies or taxable expenditures are worth more than the voluntary registration threshold, or
- The business expects for their taxable supplies or taxable expenditure for the next 30 days to be worth more than the voluntary registration threshold, or
- The amount for the voluntary registration threshold is AED 187,500.
Farahat & Co. Strengths VAT Consultant in UAE
It is never a simple job to get a hold on the idea of VAT in one go. This is the motivation behind why we are putting forth a free evaluation in the event that you need any assistance concerning VAT enrollment and calculation in UAE.
We, Farahat and Co., are one of the main VAT experts in UAE today; subsequently, we are stretching out our hand to help you in whatever you might experience issues in with respect to the VAT.