VAT Registration Services in Dubai

Value-added tax (VAT) was implemented in the United Arab Emirates on January 1, 2018. A standard rate of 5% applies to most goods and services; certain goods and services are zero-rated, and some are exempted supplies. The fully exempted supplies and out-of-scope supplies are relieved from VAT registration. Furthermore, businesses with zero-rated supplies can opt for an exemption from VAT registration.

The United Arab Emirates (UAE) has rapidly emerged as a leading global business hub and a prime destination for international investment. Whether you’re already a business owner in the UAE or planning to establish a company, it’s essential to evaluate the need for VAT registration in accordance with local tax regulations.

At Alpha Equity, we specialize in offering comprehensive VAT services, including expert VAT registration services in the UAE.

Registering your business under the UAE VAT framework validates your company with the government and ensures compliance with the nation’s tax laws. Whether or not your business requires VAT registration depends on the revenue your firm generates.

As one of the top providers of VAT registration services in the UAE, Alpha Equity is here to guide you through every step of the process, ensuring smooth and efficient registration. Let us assist you in understanding the requirements and completing the VAT registration for your business in the UAE.

Types of VAT Registration in UAE

A. Mandatory Registration

A company is required to register for VAT if:

The total value of its taxable supplies and imports over the past 12 months exceeds the mandatory registration threshold; or
The total value of its taxable supplies and imports is expected to exceed the mandatory threshold within the next 30 days.

B. Voluntary Registration

A business can opt for voluntary VAT registration if:

The total value of its taxable supplies, imports, or taxable expenses in the past 12 months exceeds the voluntary registration threshold; or
The total value of its taxable supplies, imports, or taxable expenses is expected to exceed the voluntary registration threshold within the next 30 days.

Threshold Limit

Businesses with annual revenue above AED 375,000 are required by law to register for VAT. Businesses with annual turnover between AED 187,500 and AED 375,000 have the option to register voluntarily.

How Do You Register for VAT in Dubai?

If you’re looking to initiate VAT registration services in Dubai but aren’t sure where to begin, Alpha Equity is here to help. As a trusted VAT registration consultant in the UAE, we offer comprehensive support to businesses of all sizes. The VAT registration process requires a solid understanding of the legal framework and the accurate submission of your application through the FTA portal.

Timely VAT registration Service is essential to avoid fines and ensure compliance with UAE regulations. At Alpha Equity, we handle the entire process efficiently, ensuring that all documentation is precise and submitted on time. Our dedication to quality guarantees that your business stays compliant, avoiding unnecessary delays or penalties.

Vat Registration Process In UAE

In the UAE, businesses can choose between two types of VAT registration:

1. Mandatory VAT Registration

A business must register for VAT if:

The total value of its taxable supplies and imports exceeds the mandatory registration threshold of AED 375,000 over the last 12 months.
The business anticipates that the total value of its taxable supplies and imports will exceed the threshold in the next 30 days.

Note: The AED 375,000 threshold does not apply to foreign businesses.

2. Voluntary VAT Registration

A business can opt for voluntary VAT registration if:

It does not meet the criteria for mandatory registration.
The total value of its taxable supplies and imports, or taxable expenses, in the last 12 months exceeds the voluntary registration threshold of AED 187,500.
The business expects the total value of its taxable supplies and imports, or taxable expenses, to exceed the voluntary registration threshold within the next 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 UAE government has implemented VAT registration services in Dubai, welcoming businesses from all sectors and jurisdictions to apply. VAT registration can be done at any time during the year, as long as the application is accepted by the FTA, and businesses meet the necessary criteria. However, before proceeding with the registration process, it’s essential to ensure that all required qualifications are in place.

VAT Registration Services for Foreign Investors in Dubai

As a foreign investor in Dubai, VAT registration is a crucial step to ensure compliance with UAE tax laws. At our firm, we offer VAT registration services specifically tailored for foreign investors like you. We understand the complexities that come with entering a new market, and we’re here to simplify the process. From gathering the necessary documents to submitting your application to the Federal Tax Authority (FTA), we provide expert guidance at every step. Our goal is to ensure that your business operates smoothly and stays compliant with all VAT requirements, allowing you to focus on growing your investments in Dubai.

Benefits of VAT Registration Service in Dubai

As a business owner, registering for VAT offers numerous advantages that can help streamline your financial operations and ensure compliance with UAE tax laws. Here’s why VAT registration is beneficial:

Improved Business Credibility: Being VAT registered makes your business appear more professional and trustworthy to customers and partners.
Tax Refunds: You can reclaim VAT paid on business expenses, reducing your costs.
Better Financial Management: VAT registration helps keep your accounting records organized and improves cash flow management.
Access to Business Opportunities: Many larger businesses prefer dealing with VAT-registered companies.

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:

Determine eligibility for mandatory or voluntary registration

Prepare the required documents, including:

Valid license

Passport copies or Emirates IDs of shareholders and authorised signatories

Proof of authorisation for signatories, where applicable

Business premises and contact details

Bank letter verifying company’s bank account details

Additional documents like Articles of Association, if applicable

VAT registration letter from the customs department for certain companies

Taxable supplies and taxable expenses details as stipulated as per UAE VAT law

Some Important Concepts About Vat Registration Process In UAE

Apply electronically via the UAE Federal Tax Authority (FTA) EMARA Tax portal.

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.

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

For new businesses in the UAE, VAT registration requirements are based on the company’s projected turnover:

Mandatory Registration Threshold: AED 375,000 in revenue or imports.
Voluntary Registration Threshold: AED 187,500 in revenue or imports.

If a business does not meet these thresholds, the FTA will reject the application, and a TRN (Tax Registration Number) will not be issued. However, businesses anticipating rapid growth should consult with a VAT registration consultant in UAE to ensure compliance as they approach the thresholds.

VAT Registration Services for New Companies in UAE

Foreign companies selling goods in the UAE to non-registered consumers are required to register for VAT, regardless of their turnover. For example:

Non-UAE residents selling products within the UAE
International businesses using platforms like Amazon to sell in the UAE

Obtaining a VAT number is crucial for these companies to operate legally and ensure compliance with VAT registration services in UAE regulations.

WHAT ARE THE PENALTIES FOR LATE OR INCORRECT VAT RETURNS FILING

If I miss the VAT filing deadline or submit incorrect returns, I could face significant penalties. The UAE’s tax authority imposes fines for late VAT filing, which can range from AED 1,000 for the first offense to AED 2,000 for subsequent delays. If the return contains errors or omissions, I might be charged an additional penalty of up to 50% of the unpaid VAT amount. In severe cases, penalties could increase based on the tax authority’s evaluation. To avoid these risks, I make sure to file my VAT returns accurately and on time, ensuring full compliance with UAE regulations.

why choose Alpha Equity as a Vat Registration services In UAE?

At Alpha Equity, we provide reliable and efficient VAT registration services in UAE. Our team of experts guides you through the entire VAT registration process, ensuring full compliance with UAE tax laws. We understand the complexities of VAT regulations, and we tailor our services to meet the unique needs of your business. Whether you’re a local or foreign company, we make the registration process seamless and hassle-free. With our transparent pricing, personalized approach, and quick turnaround times, we are your trusted partner for all your VAT registration needs in the UAE. Choose us for peace of mind and accurate 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