VAT Registraion

UAE VAT Registraion

VAT Registration

Being registered under the VAT law means that a business is acknowledged by the government, as a supplier of Goods and Services and is authorized to collect VAT from customers and remit the same to the government. Only VAT registered businesses will be allowed to do the following:

  • Charge VAT on the taxable supply of goods and services
  • Claim Input Tax Credit on VAT paid on their purchases, which will be deducted from VAT liability on sales
  • Payment of VAT to the government
  • Periodic filing of VAT return

Apart from the above, all registered businesses have to align their business reporting structure in line with the compliance requirements such as accurate and updated books of accounts, tax paid documents such as Tax invoice, credit notes, debit notes, records to all inward supplies and outward supplies etc. are required to be maintained.

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Who Needs to Register for VAT in Dubai?

Businesses are required to register for VAT in Dubai if they meet the following criteria:

  • Mandatory Registration:

If your business has an annual taxable supply (sales) or imports that exceed AED 375,000.

  • Voluntary Registration:

If your taxable supplies are between AED 187,500 and AED 375,000, you can opt for voluntary registration.

VAT Registration Process in Dubai:

The VAT registration process in Dubai is straightforward but requires careful preparation. Here’s an outline of the steps:

  • Determine Eligibility: Assess whether your business meets the criteria for VAT registration.
  • Create an e-Services Account: Register for an account on the Federal Tax Authority (FTA) portal.
  • Prepare Necessary Documents:
  • Trade license details.
  • Bank account information.
  • Financial statements or recent tax filings (if applicable).
  • Complete the Application: Fill out the VAT registration application form on the FTA portal, providing accurate and detailed information.
  • Submit for Approval: Once your application is submitted, the FTA will review it and approve the registration if all requirements are met.
  • VAT Certificate: Upon approval, you will receive a VAT registration certificate, allowing you to begin charging VAT.

 

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