VAT Registration Requirements in Dubai

VAT Registration in Dubai

VAT Registration in Dubai

Since January 1, 2018, the UAE has implemented a 5% Value-added Tax (VAT) on goods and services, with exceptions for essentials like food, healthcare, and education. Governed by Federal Decree-Law No. 8/2017 and related decisions, this VAT system mirrors those in Europe and other nations. Mandatory VAT registration was required by December 31, 2017, for businesses with an annual turnover exceeding AED 375,000. This blog explores various VAT services, registration requirements, necessary documents, and the step-by-step process for VAT registration, Tax Group registration, and VAT reregistration.

Types of VAT Registration Services in Dubai:

In Dubai, businesses can avail themselves of two VAT Registration Services, depending on their profit and taxable income.

Voluntary VAT Registration:

For companies with annual business profits ranging from AED 187,500 to 375,000, voluntary VAT registration is an option. Opting for this service provides a Tax Registration Number (TRN). Importantly, fines won’t be imposed if you choose not to register voluntarily. This option is also relevant if you anticipate your company’s turnover in the next thirty days will exceed AED 187,500.

Mandatory VAT Registration:

Businesses with an annual turnover exceeding AED 375,000 must undergo mandatory VAT registration. This ensures obtaining a TRN necessary for smooth business operations. With a secured tax registration number, you can apply VAT to goods and services, complying with legal requirements.

VAT Registration Documents in Dubai:

For VAT registration in Dubai, specific documents are necessary:

  • Identification documents for the authorized signatory, such as passport copies and Emirates ID.
  • Copy of the company’s trade license.
  • Official documents authorizing the entity/individual to conduct activities within the UAE, including the certificate of incorporation, articles of association, and power of attorney.
  • Description of business activities.
  • Turnover details for the last 12 months in AED.
  • Supporting documents for 12-month sales.
  • Expected turnover in the next 30 days.
  • Estimated value of imports for 1 year from each GCC country.
  • The estimated value of exports for 1 year to each GCC country.
  • Indication of whether you expect to deal with GCC suppliers or customers.
  • Supporting documents for customs registration in each emirate if applicable.
  • Bank account details.

Steps to Apply for VAT Registration in Dubai:

Securing VAT services in Dubai is a government obligation, with deadlines communicated based on company turnover and VAT types. Familiarize yourself with the application procedure to ensure a smooth process:

  • Create an account on the e-service Portal and register to initiate the VAT application process.
  • Access the online VAT registration form.
  • Provide essential details, including company information, personal information, business contact details, and banking information.
  • Enter specifics about your VAT registration and declare any relevant business relationships.
  • Review all information entered and click “Submit” to finalize your VAT services application.
  • Registering a Tax Group:
  • When establishing a tax group in the UAE, only the representative company can apply for tax group registration. Each potential member must meet specific criteria:

Step to Apply for VAT Registration:

  • Reside in the UAE and comply with residency regulations.
  • Not be a member of any other existing Tax Group.
  • Adhering to these criteria ensures a structured and compliant collaboration among eligible companies in the UAE.

Deregistering for VAT:

Deregistering for VAT is an option to consider under certain circumstances. Companies that have voluntarily registered for VAT must remain registered for a minimum of 12 months before applying for deregistration. Deregistration is advisable under the following circumstances:

  • Company ceases making taxable supplies.
  • Value of taxable supplies drops below the voluntary threshold.
  • No anticipation of taxable supplies surpassing the voluntary threshold within the next 30 days.

    Why with Firmz Business Setup:
    Firmz Business Setup provides a distinct advantage in obtaining business license in dubai, UAE. With expertise in UAE business regulations, personalized solutions, and a comprehensive service range, Firmz Business Setup ensures a smoother and cost-effective license acquisition process. The team’s commitment to ongoing assistance contributes to the success of your business setup journey in Dubai.
Share the Post:

Get In Touch

Start typing to see posts you are looking for.