VAT REGISTRATION IN DUBAI
Value Added Tax (VAT) was introduced in the United Arab Emirates (UAE) in 2018, including Dubai. VAT registration is mandatory for businesses that meet the VAT registration threshold in Dubai. Businesses must follow the necessary steps to register for VAT and comply with VAT regulations, including charging VAT on taxable supplies, filing VAT returns, maintaining VAT records, and submitting VAT payments. By complying with VAT regulations, businesses can avoid penalties and operate their businesses smoothly and efficiently in Dubai.
Value Added Tax (VAT) is a tax on the consumption or use of goods and services levied at each point of sale. In Dubai, businesses that meet the VAT registration threshold must register for VAT with the Federal Tax Authority (FTA) and comply with VAT regulations.
Types of VAT Registration Process
Mandatory VAT Registration: For businesses with annual taxable supplies exceeding the mandatory threshold, currently set at AED 375,000.
Voluntary VAT Registration: Businesses with taxable supplies below the mandatory threshold can opt for voluntary registration to avail input tax recovery benefits.
Group VAT Registration: Allows eligible companies to register as a VAT group, consolidating their financial activities for VAT purposes.
Exempt Supplies Registration: Businesses exclusively dealing with exempt supplies may opt for this registration, limiting their ability to recover input tax.
Designated Zone VAT Registration: For businesses operating within designated zones, this registration facilitates compliance with specific VAT regulations.
Documents Required for VAT Registration :
- A copy of the valid trade license issued by the relevant authority in Dubai.
- Copies of Emirates ID for the business owner(s) or authorized signatories.
- Passport copies of the business owner(s) or authorized signatories.
- Copies of the UAE residency visa for business owner(s) or authorized signatories.
- A copy of the MOA outlining the business activities and structure.
- Copies of documents proving the legal existence of the company, such as the certificate of incorporation.
- Information on the company’s bank account, including the account number and IBAN.
- Audited financial statements for the last 12 months, if applicable.
- For businesses involved in the import and export of goods, the customs registration number is required.
- Information about the business activities, turnover, and any additional details required by the tax authorities.
Services
VAT Registration Process
Visit the Federal Tax Authority (FTA) website and create an e-Services account. This account will be used to complete the VAT registration process online.
Collect the necessary documents for VAT registration, which typically include:
1. Trade license copy
2. Emirates ID copies of the business owner(s) or authorized representatives
3. Passport copies of the business owner(s) or authorized representatives
4. Memorandum of Association (MOA) or articles of association
5. Bank account details
6. Financial statements or records of the business
Log in to your e-Services account and complete the VAT application. Provide accurate and up-to-date information about your business, its activities, turnover, and contact details.
After submitting the application, the FTA will review the information provided. If everything is in order, the FTA will issue a Tax Registration Number (TRN) for your business. The TRN is a unique identifier for your VAT registration.
Responsibilities After VAT Registration
After registering for VAT, businesses must comply with VAT regulations, including:
Businesses must charge VAT on taxable supplies and issue VAT invoices.
Businesses must file VAT returns on a regular basis, usually every quarter.
Businesses must maintain accurate VAT records, including invoices, receipts, and other relevant documents.
Businesses must submit VAT payments to the FTA on time.
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Frequently Asked Questions (FAQ)
VAT registration is the process by which businesses in Dubai register for Value Added Tax (VAT) with the Federal Tax Authority (FTA). Businesses with an annual turnover exceeding AED 375,000 are required to register for VAT..
You can register for VAT in Dubai through the FTA’s online portal. The process involves submitting the necessary documents and information, such as business details, financial records, and contact information.
The documents required for VAT registration in Dubai typically include a trade license, Emirates ID, passport copies of the business owner, bank account details, and financial statements.
Yes, businesses must register for VAT within 30 days of reaching the mandatory registration threshold, which is an annual turnover exceeding AED 375,000.
Failure to register for VAT in Dubai can result in penalties and fines imposed by the FTA. Businesses need to comply with the VAT registration requirements to avoid any legal consequences.
Yes, certain businesses may be exempt from VAT registration in Dubai, such as small businesses with an annual turnover below the mandatory registration threshold and businesses engaged in zero-rated supplies.
Yes, tourists can claim back VAT paid on goods they purchased in Dubai, as long as they meet certain criteria and have the necessary documents.