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VAT Registration Services in Dubai, UAE

Whether you own a small, medium, or established large business, you need to get registered for VAT in UAE under the Emirati VAT law. Registering your business under the UAE VAT law denotes that your business is recognized by the Government. VAT registration in UAE for your business entity will depend on the income generated from your business. CDA Accounting and Bookkeeping Services LLC is one of the leading consultancies in UAE, which offers outstanding VAT registration services in Dubai addition to VAT deregistration, VAT accounting, VAT return filing, etc. 

vat registration services in uae

UAE VAT Registration Online

If you are a business owner in UAE you need to get your business registered under the VAT law that has come on effect from 1st January 2018. Once a company is registered for VAT in Dubai, it must file VAT returns on a regular basis or as set by the authority.

VAT Registration is mandatory for companies and individuals doing businesses in the UAE if the annual turnover is more than AED 375,000/-.

The VAT registration processes in Dubai involve:

  • Register for VAT 
  • Charge VAT on the invoices issued to the clienteles
  • Announce the VAT to the Federal tax authorities through a VAT filing

Documents Required for VAT Registration in Dubai

  • Passport copy or Emirates ID to prove the identity of the authorized party 
  • Trade license copy of the company
  • Certificate of Incorporation of the company
  • Certificate of Articles of Association of the company
  • Certificate of Power of Attorney of the company
  • Description of business activities
  • Turnover for the last 12 months in AED
  • Supporting document for 12-month sales
  • Expected turnover in 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
  • Your consent whether you deal with GCC suppliers or customers
  • Supporting documents for customs registration in the Emirates if applicable.
  • Details of Bank Account

VAT Registration Processes

Basically, a business can opt for any of the two types of VAT registration in UAE:

1. Mandatory Registration

It is mandatory that a business must register for VAT:

  • If the total value of its taxable supplies and imports exceeds the required registration threshold over the previous 12 months
  • If the business expects that the total value of its taxable supplies and imports will exceed the obligatory registration threshold in the next 30 days.

The threshold for mandatory registration of a business is AED 375,000. But this threshold is not applicable to foreign organizations.

2. Voluntary Registration

A company may opt for Voluntary Registration:

  • If it does not meet the mandatory registration criteria,
  • If the total value of its taxable supplies and imports or taxable expenses in the preceding 12 months surpasses the voluntary registration threshold,
  • If the business foresees that the total value of its taxable supplies and imports or taxable expenses will exceed the voluntary registration threshold in the next 30 days.

The threshold for voluntary registration of a company is AED 187,500.

Calculating the Tax Registration Threshold

As per the Federal Decree-Law No. (8) of 2017 on Value Added Tax, to determine whether a person has exceeded the Mandatory Registration Threshold and the Voluntary Registration Threshold, the following details will be considered:

  • The value of Taxable Goods and Services
  • The value of Concerned Goods and Concerned Services received by the Person 
  • The value of the whole or relevant part of Taxable Supplies that belong to said Person if he has, wholly or partly, acquired a business from another person who made the supplies.
  • The value of Taxable Supplies made by related parties in accordance with the cases stated in the Executive Regulation of this Decree-Law.

VAT Registration as a Group

Two or more persons running businesses may apply for Tax Registration as a Tax group in UAE based on the following conditions: -

  • Each person shall have a Place of Establishment or Fixed Establishment in the State.
  • The relevant persons shall be Related Parties.
  • One or more persons conducting business in a partnership shall control the others.
  • If Related Parties do not apply for Tax Registration as a Tax Group, the Authority may assess their relationship based on their economic, financial and regulatory practices in business and register them as a Tax Group if their relation was proved thereto according to the controls and Conditions specified by the Executive Regulation.

VAT- exempt sectors

The following categories of supplies will be exempt from VAT:

  • The supply of some financial services that explained in VAT legislation
  • Residential properties
  • Bare land
  • Local passenger transport

How to Register for VAT in UAE

The registration for VAT in UAE is an online process that can be done through the VAT registration portal available on the website of www.tax.gov.ae. 

Once the application is submitted, the FTA will review the information and documents submitted and approve the application if everything has met the requirements, and it will allow a Tax Registration Number (TRN).

Once the VAT registration process is over, the Ministry of Finance will issue a VAT certificate which is an official confirmation from the authority that the business is registered under the VAT Law in the UAE.

A VAT Certificate includes the following rudiments:

  • VAT Registration Number
  • Date of the VAT registration
  • Issue date
  • Address of the Registered entity
  • First VAT return period
  • VAT return due date
  • Start and end dates of tax periods

Penalty for Non-Registration under VAT

Any company that fails to finish the VAT registration process under the deadline set by the Federal Tax Authority or if the company fails to submit registration after crossing the manual threshold limit is liable to pay a fine of AED 20,000.

The Importance of VAT Registration 

Experts observe that the introduction of VAT in UAE will bring long-term benefits to the country's economy and business owners. The significant reasons why VAT registration in Dubai is considered important include:

  • It enhances the business profile
  • It avoids unnecessary penalties
  • It allows claiming VAT refunds
  • It widens the market possibilities

CDA VAT Consultancy Services

CDA has been playing a significant role in dealing with the accounting and taxation services for business entities regardless of its size. The CDA experts are chosen because they are perceptive of the procedures of the VAT. They know the right decorum to be followed for the UAE VAT registration. That is why CDA is the first choice to be considered by the companies with regard to VAT Registration in the UAE. CDA not only provides VAT registration services in Dubai but also provides all kinds of VAT related services to help small, medium, and large-sized businesses grabbing maximum profit. 

We recognize the importance and need for VAT Services for every business entity in the UAE, and deliver a wide range of VAT services, which include: -

  • VAT registration
  • VAT deregistration
  • VAT compliance and control
  • VAT filing and payment
  • Data entry and management

CDA provides a wide range of business services that include CFO Services, Auditing Services, Accounting & Bookkeeping Services, Accounting Software services, Due Diligence Services and Tax filing Services.

If you have any queries regarding VAT Registration in UAE or about your current business, feel good to discuss with us. CDA is there for your assistance! 

Our expert will give you one-hour Free Consultation to keep your reservations away!


Frequently Asked Questions on VAT Registration in UAE

The above-mentioned person will have to register for VAT if supplies of Goods/Services are made and no other person is obliged to pay the due tax in the UAE on these supplies.

In case of Mandatory Registration, the person must apply for tax registration within 30 days of being required to register.

More than one TRN is not allowed for a business conducted in UAE.

Yes, it is possible for those taxable persons whose supplies are zero-rated. The request for the same should be submitted to the authority.

If the capital asset belongs to the person, the supply of the asset is not liable for any registration threshold.

Yes. The following cases could be the reasons for refusal (1) the respective persons do not meet the definition for the related party specified by the authority, (2) there are convincing reasons to believe that; this registration may lead to tax evasion or a significant decrease in the authority’s tax revenues or increase in the authority’s administrative burden, (3) Any of the applicants is not a legal person, (4) one of the persons is a government entity, (5) one of the persons is charity.

Sale of the asset by a VAT registrant would be treated as a taxable supply and hence subject to standard rate VAT, excluding assets that are exempt. But, if the assets or business is sold to a taxable person as a going concern, it is not eligible for VAT.

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