VAT Registration Services in Dubai

United Arab Emirates The United Arab Emirates introduced value-added tax (VAT) on January 1, 2018. Most goods and services are charged at a standard rate of 5% but there are some goods and services which are zero-rated and some are exempted supplies. The completely exempt supplies and out of scope supplies are not charged with the VAT registration service. Moreover, companies that get zero-rated supplies are allowed an exemption under the VAT registration.

United Arab Emirates (UAE) has swiftly risen to become one of the major hubs of business in the world and a major destination of international investment. You might have an existing business in the UAE or start one and it is important to consider situations where you may need to have its VAT registration based on the local tax procedures.

Alpha Equity is a leading firm in providing VAT services; these services include amongst others consulting VAT registration services in the UAE.

By registering your company in the UAE VAT regime, you ensure that the government certifies your company and makes sure that it abides with the laws of taxation in the country. The amount of revenues that are brought in by your firm form part of the factor that determines whether or not you will need the registration of VAT in your business.

Alpha Equity is also one of the leading providers of VAT registration services in the UAE and we are, therefore, ready to support you in all the processes that will work towards a smooth and hassle-free registration. We will help you know the requirements and carry out the VAT registration of your business in the UAE.

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Types of VAT Registration in UAE

A. Registration Requirement

A business has to register into VAT when:

  • Its supplies of taxable goods in the last 12 months and its imports are over the threshold.
  • Its total supplies and imports are likely to exceed the compulsory turnover in 30 days which do not include overall value added taxes.

B. Voluntary Registration

A voluntary VAT registration services may take place when a business:

  • The total amount of its taxable supplies, imports, or taxable expenses within the last 12 months are more than the voluntary registration threshold.
  • It has a total value of all its taxable supplies, imports or taxable expenses that are likely to go beyond the voluntary registration threshold within the next 30 days.

Threshold Limit

Companies whose annual revenue exceeds AED 375,000 must be registered into the VAT according to the law. Voluntary registration is open to businesses whose turnover is between AED 187,500 and AED 375,000 annually.

How Do You Register for VAT in Dubai?

When you are planning to come to start the process of VAT registration services in Dubai and do not know how to start, then Alpha Equity is the point of your search. We also provide businesses, big and small, with all the support they need in terms of becoming VAT registered in the UAE since we are a reliable VAT registration consultant in the UAE. The registration procedure to VAT is much related to a good knowledge of the legislation and correct submission of your application on the portal of the FTA.

VAT registration Service is mandatory to prevent the fines and comply with the rules and regulations in UAE. In Alpha Equity, we have everything in place and we make the whole process smooth without compromising all the documentation that is supposed to be done right on time. We are committed to quality which ensures your business will remain compliant thus avoiding excess delays and fines.

Vat Registration Process In UAE

There are two types of VAT registration that companies may opt in UAE:

1. Compulsory VAT Registration

A business needs to be registered to VAT with:

  • Its taxable supplies and imports have a combined value that exceeds the required amount of registration that is AED 375,000 in the previous 12 months.
  • It is expected that the aggregate turnover of the business in the form of supplies made and imports by this business within the next 30 days will surpass the turning-over threshold.

Foreign businesses: AED 375 000 threshold does not apply to foreign businesses.

2. The Voluntary VAT Registration Services

There are those situations where a business may choose to voluntarily register VAT in case:

  • It fails to make the grade of compulsory registration.
  • The AED amount of its taxable expenses (e.g. taxable supplies and imports in the previous 12 months), is more than that required to voluntarily register (AED 187,500).
  • The business anticipates that the total amounts of taxable supplies and imports that it makes, in terms of expenses that could be taxed in the future, will surpass the limit of voluntary registration in the coming 30 days.

Documents Required for VAT Registration Services in Dubai

  • Passport copy or Emirates ID to verify the identity of the authorized person

  • Trade license copy of the company

  • Company’s Certificate of Incorporation

  • Company’s Articles of Association certificate

  • Power of Attorney certificate for the company

  • Description of the company’s business activities

  • Turnover for the last 12 months in AED

  • Supporting documents for sales over the past 12 months

  • Projected turnover for the next 30 days

  • Estimated value of imports for one year from all GCC countries

  • Estimated value of exports for one year to all GCC countries

  • Consent regarding dealings with GCC suppliers or customers

  • Supporting documents for customs registration in the Emirates (if applicable)

  • Bank account details

What is the Deadline for VAT Registration Services in Dubai?

The government of the UAE has initiated VAT registration services in Dubai where any type of business operating locally and in the international community can apply. Registration under the VAT can be carried out any time in a year (provided it is accepted by FTA) and a business must fulfill the required prerequisites. But prior to taking the registration procedure, it is important to first make sure that all the prerequisite qualifications are attained.

VAT Registration Services for Foreign Investors in Dubai

Being a foreign investor in the city of Dubai, it is important that a VAT registration service is carried to ensure that the Foreign Investor is compliant with the laws of the UAE regarding taxes. In our firm, we have specific VAT registration services to foreign investors, such as you. We are aware of the challenges that one has to face when they are entering a new market, and this is why we have come to make it easier. We support you throughout the process including compiling the required requirements to apply to the Federal Tax Authority (FTA). We are here to help your company run with ease and continue in line with all VAT provisions so that you can concentrate on making your investments in Dubai.

Benefits of VAT Registration Service in Dubai

Basing on the above discussion, as an entrepreneur it is very possible that you might need to register with VAT as it has many benefits that can support the smooth running of your business finances as well as adherence to the UAE laws on taxation. The reason VAT registration is useful is as follows:

Enhanced Business Reputation: Under the VAT registration process, a business looks professional and a place a clientele and trading partners would want to depute with.

Tax Refunds: You are also able to claim back VAT on any business expenditure lowering your current expenses.

Improved financial management: VAT registration services also assists you in maintaining your accounting records in order and also better management of cash flow.

Business Opportunity: Most major businesses look forward to more business with VAT registered businesses.

Key requirements for Vat Registration Process In UAE

Mandatory registration:

Businesses must register for VAT if their taxable supplies, taxable expenses and imports exceed AED 375,000 in the past 12 months or are expected to exceed this threshold in the next 30 days

Restrictions

Voluntary registration: Businesses can opt for voluntary registration if their taxable supplies and imports are between AED 187,500 and AED 375,000

Registration Process

To register for VAT in the UAE with the Federal Tax Authority (FTA), businesses need to gather the following documents and information:

Identify eligibility to mandatory or voluntary registration

Make up the necessary papers, and they are:

Valid license

Sharholders and authorised signatories Passport

copies/Emirates IDs

Evidence of authorisation of signatories when applicable

Address, phone numbers Business location

Bank letter confirming bank account details of the company

Other documents such as Articles of Association in cases thereof

Letter of VAT registration by customs department in some companies

Details of taxable supplies and taxable expenses as specified according to the UAE VAT law

corporate tax consultancy services

Some Important Concepts About Vat Registration Process In UAE

Make online applications through the UAE Federal Tax Authority (FTA) EMARA Tax portal.

The procedures (VAT returns) are prepared and submitted monthly/quarterly against the criteria as stipulated by FTA and are due upon 28 th of the month following the reporting period and payment should be made on the same deadline.

Filing and Payment

VAT returns are prepared and filed monthly or quarterly based on criteria set by FTA, due on the 28th of the month following the end of the reporting period

Payments must be made by the same deadline.

Penalties

Late filing: AED 1,000 fine, doubled to AED 2,000 for multiple violations within 24 months.

Late payment interest penalty for unpaid liability.

Other penalties for defaulting various provisions stipulated under the amended Executive Regulation of Federal Decree Law No 8 of 2017.

Special Considerations

The reverse charge mechanism applies to VAT-registered businesses importing goods, buying or supplying gold and diamonds for resale or further production, engaging in specific energy product transactions (e.g., crude oil, natural gas) between registered UAE businesses or purchasing goods from designated zones within the UAE

Non-resident businesses have no registration threshold and must appoint a fiscal representative when registering for VAT in the UAE.

De-registration

VAT deregistration in the UAE allows businesses to cancel their VAT registration number with the Federal Tax Authority (FTA) based on the following criteria. Here are the applicable situations for VAT deregistration in the UAE:

Conditions for Deregistration

Mandatory Deregistration:

Business stops making taxable supplies and doesn’t expect to make any in the next 12 months

Taxable turnover falls below AED 187,500 in the previous 12 months

Voluntary Deregistration:

Taxable turnover is between AED 187,500 and AED 375,000

Deregistration Process

Apply through the Emara-Tax portal within 20 business days of meeting deregistration conditions

Provide required documents, including:

Final VAT return

Proof of business cessation, wherever applicable

Financial statements as per FTA guidelines.

Clear all unpaid VAT liabilities

File the final VAT return

Wait for FTA’s final approval

Important Considerations

Penalty for late deregistration: AED 10,000
Cannot apply for deregistration within 12 months of initial VAT registration
If you plan to continue business or expect new investors, it's advisable to retain the Tax
Registration Number (TRN) and file zero returns.
Businesses should carefully evaluate their situation and consult with tax experts before
proceeding with VAT deregistration to ensure compliance with UAE tax regulations.

VAT Registration Process for New Companies in UAE

In the UAE, registration with regard to VAT is pegged on the estimated turnover of the company:

  • Statutory Registration Threshold: AED 375000 income or imports.
  • Voluntary Registration Level: AED 187,500 revenue or imports.

In case a business fails to pass these thresholds, the application will be rejected by the FTA, and a TRN (Tax Registration Number) will not be reimbursed. Nevertheless, any company that has faith in its imminent flourishing must communicate to a VAT accountations guide in UAE to ascertain that they are conforming to the rules as their limits get nearby.

VAT Registration Services for New Companies in UAE

The foreign companies are already obliged under the law to register a VAT even though the VAT is not applied in the UAE, but when they are selling their goods to the non registered consumers. For example:

  • Residents outside of the UAE who have products that are being sold in the UAE
  • International companies that use the platform of Amazon to trade in the UAE

It is very imperative that these companies will receive a VAT number that will legally allow them to perform their operations and make sure that they are compliant with VAT registration services in UAE requirements.

WHAT ARE THE PENALTIES FOR LATE OR INCORRECT VAT RETURNS FILING

Failure to file the VAT forms, late returns or inaccurate returns may result in heavy penalty on my part. The penalty of the UAE tax authority on the tardy filling of VAT may amount to a AED 1,000 on the initial infringement and AED 2,000 on the consecutive delays. In case of errors and omissions in the return filed, the penalties I may be levied an extra of upto 50% of the amount of VAT not paid. In extreme situations, more penalties may be added as per the assessment of the tax authority. To evade such risks, I ensure that my VAT returns are filed correctly and on schedule and I adhere fully to the regulations of the UAE.

Why Choose Alpha Equity as a Vat Registration Services In UAE?

We offer quality and effective VAT registration services in UAE at Alpha Equity. We have a team of professionals that walks you through the whole VAT registration process, and leaves no space in understanding the tax regulations in the UAE. We know about the complexity of VAT requirements, and how we can structure our services to support the needs of your business. As a local or foreign company, we make the registration at no point tough, as it will be smooth and easy. We are your go to partner when it comes to everything regarding VAT registration in UAE as we are very transparent, personal and efficient in what we do. Select us because you will sleep comfortably and have the right service. We also provide Accounting And Auditing Services in dubai.

FEEL FREE TO CONTACT US FOR ANY ENQUIRY

We will be more than happy to help you. You can also Contact via our inquiry form

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