A Short Guide to VAT Registration UAE
When you are doing business in the UAE, you need to conform to the local rules. One of the most important things that you need to do is VAT Registration Services UAE. When you are registered under the VAT laws in UAE, then your business is acknowledged by the government, as a supplier of Goods and Services. You would be authorized to collect VAT from customers and remit the same to the government. You need to undergo VAT Registration for doing the following:
- Charging of Value Added Tax (VAT) on taxable supply of goods and services
- You can claim Input Tax Credit on VAT paid on their purchases. This will be deducted from VAT liability on sales
- Paying of VAT to the government
- Periodic filing of VAT return
According to the laws, all registered businesses in UAE will have to ensure that they conform their business reporting structure in line with the compliance requirements as et forward by the UAE Government. You need to have accurate and updated books of accounts, and also have records of tax paid documents such as Tax invoice, credit notes, debit notes, records to all inward supplies and outward supplies etc.
Let us take a look at the process of VAT Registration and look at the things that you should do while undergoing the process.
Who should register under VAT?
One of the first questions that entrepreneurs often ask is whether all businesses should register for VAT? Well, the answer is No. Only those businesses whose turnover exceeds the defined annual aggregate turnover limit are liable to register under VAT. Based on the registration threshold, your business will either be mandated to register or as an option.
On the basis mentioned above, VAT registration can be classified into the following types:
- Mandatory VAT Registration UAE
- Voluntary VAT Registration
- Exemption from VAT Registration
How to Apply for VAT Registration UAE?
According to the laws in the UAE, the businesses whose turnover exceeds AED 375,000 will have to mandatorily apply for VAT registration. To facilitate the businesses to go through VAT Registration, the Federal Tax Authority (FTA) has opened a dedicated portal for online VAT registration. While it is important for businesses to determine what should be their obligation towards VAT registration Services Dubai, UAE, it is also important for businesses to know how to apply for VAT Registration Services and fully understand the process required to complete the online registration process.
Having a good understanding about the type of details required would make things easier and you would be able to prepare well in advance. As a result, the registration process can be completed easily and can avoid unnecessary delays due to errors, which could even lead to rejection of registration application.
You need to go through the following process for VAT Registration UAE
- Creation of e-Service Account
- Login to your e-Service Account
- About the applicant
- Details of the applicant
- VAT Registration Form: The online VAT registration form contains 8 sections as given below:
- Banking details
- Business relationships
- About the VAT registration
- Declaration
- Review & submit
- Contact details
VAT Group Registration
According to UAE VAT rules, any person conducting a business is not allowed to have more than one Tax Registration Number (TRN). However, there are certain exceptions prescribed in the UAE Executive Regulation. This means that even if you are operating via branches that are located in more than one Emirate, you would require only one VAT registration is required. At the same time, if two or more persons are parties in the businesses, they are allowed to apply for VAT group registration.
VAT Turnover Calculation for Registration in UAE
In UAE VAT law, businesses whose annual turnover exceeds AED 375,000 and the voluntary registration threshold of AED 187,500 are allowed to apply for VAT registration Services Dubai, UAE.
Deadlines for VAT registration UAE
Since 1st January, 2018, the Federal Tax Authority (FTA) has started the process of inviting applications for VAT registration. The FTA has opened its online portal to allow the businesses to register online. You can get in touch with Arab Business Consultant as they are experts in VAT Registration Services Dubai, UAE. They would take care of everything and make the process for hassle free. So, get in touch with the experts and make the process as easy as possible.