Introduction
VAT registration in Dubai is necessary for any business setup that was implemented on the 1st of January 2018. This register for VAT in Dubai has become an essential part of UAE’s taxation and affects businesses irrespective of their size and sectors. In this blog, you will learn about what is VAT registration its types, and the 6 key steps you need to go through to complete the process of getting your business VAT registration. Arab Business Consultant is the best provider of VAT registration services in UAE.
What is a VAT registration in Dubai?
Value-added tax or VAT is an indirect tax applied on the sale of services and goods. Most of the countries adopted this VAT. In this VAT process, it’s the final customer who bears the VAT cost in a supply chain. The VAT registration in UAE was introduced on imported goods and services on January 1st, 2018. Once you complete your VAT Dubai registration process, you can work as a tax collector as the representative of the FTA (Federal Tax Authority). Do collect the tax from your side customers and further pay it to the government. You along with your business can lay claim to your refunds from the government for the text you have paid for your supplies.
The two types of VAT Registration in Dubai
The Federal Tax Authority VAT Registration UAE eligibility basis depends on the company’s annual revenue and annual taxable expenses. Below we have mentioned the two kinds of VAT Registration in Dubai :
Mandatory VAT registration in Dubai
This VAT registration applies to person and companies who holds an annual turnover of AED 375,000 or more than this. If your business comes under this category you need to get a Tax Registration Number (TRN) or your VAT number Dubai to operate your business in UAE. You can then apply this VAT to your supplies and collect VAT on behalf of the FTA.
Eligibility criteria for mandatory VAT Registration
- Your business’s annual turnover and imports have been more than AED 375,000 throughout the last 12 months.
- You expect that your business turnover in the next 30 days will exceed AED 375,000.
Voluntary VAT Registration in Dubai
For this the people or companies who have an annual turnover of more than AED 187,500 but are less than AED 375,000. If your business comes under this category you have to get a Tax Registration Number (TRN) to operate your business in UAE. If you don’t do your business VAT Registration then you will never face any legal issues or fines.
Eligibility criteria for voluntary VAT Registration in Dubai
- You expect that your business turnover in the next 30 days will exceed AED187,500.
Here is a table chart for your better understanding of the difference between mandatory and voluntary VAT Registration.
| Mandatory VAT registration | Voluntary VAT Registration |
| Registration gateway is AED 375,000. | Registration gateway is more than AED 187,500 but is less than AED 375,000. |
| It is mandatory. | It is optional. |
| Applicable if your business’s last 12 months turnover is or imports have been more than AED 375,000. | Applicable if your business’s last 12 months of turnover, imports, or taxable expenses exceeds AED 187,500. |
| Applicable if your business turnover in the next 30 days is anticipated to be more than AED 375,000. | Applicable if your business turnover in the next 30 days is anticipated to be more than AED 187,500 |
| Non- registration within a given time frame may result in the payment of fines. | Non-registration within a given time frame will not result in any penalties. |
How to register for VAT in UAE
If your business turnover exceeds AED 375,000 then you must apply for Mandatory VAT registration. Federal Tax Authority (FTA) has opened the portal for online VAT registration in Dubai for the ease of business people they provided this facility. Here are some steps that you need to follow for doing your VAT registration in UAE.
Step 1: Sign up for the Emara Tax Account on the FTA’s website and activate it.
Step 2: Get into the Emara Tax Account dashboard
Step 3: Make a New Taxable person profile
Step 4: Click on “View” to get into the Taxable Person Account
Step 5: Click on “Register” below “Value Added Tax”
Step 6: You need to complete the registration process by filling out the 8 sections as mentioned below:
- About the applicant
- Details of the applicant
- Contact details
- Banking details
- Your business relationships
- About the VAT registration
- Declaration
- Review it and then submit
Conclusion
VAT registration in Dubai is an important aspect of your business. It does require careful planning, preparation, and adherence to regulations. To get done your business VAT registration in Dubai you do need a skillful VAT Registration Service in Dubai that knows the VAT registration process, knows all the requirements, the benefits it will give to your business, and also the post-registration consideration points. So get it done from Rakesh Khatri who is a prominent business consultant and has the team expertise.
Below we have mentioned a few blogs to know more about our services, the process, and how it will accelerate your business for more details you can visit the official website of Arab Business Consultant.
