VAT Registration in UAE

What is VAT Registration in the UAE?

Under the Emirati VAT Law, VAT registration is mandatory for all businesses to operate in the UAE. VAT registration signifies that your business is legally recognized by the government. Value Added Tax (VAT) is a system of indirect taxation, levied incrementally at each stage of production, distribution, and sales.

According to the VAT law introduced in the UAE in January 2018, a standard 5% tax applies to almost all goods and services supplied within the country.

Who needs VAT Registration in Dubai?

Whether it is a start-up, small business, or medium-sized enterprise, VAT registration is mandatory for all. Businesses must register for VAT if their taxable supplies and imports exceed the AED 375,000 threshold.

Additionally, a business can choose to register voluntarily if it meets either of the two situations mentioned below.

Richman Associate offers comprehensive VAT registration in Dubai. Our dedicated team of experts simplifies VAT registration in Dubai for business owners.

VAT Registration Requirements

Documents that you need for FTA VAT registration include the following:

A passport or ID card issued by the Emirates to prove the identity of the authorized entity
Copy of the trade license
The company’s certificate of incorporation
A copy of the Memorandum of Association of the company
A copy of the Power of Attorney
Description of the business activities and bank account details
Turnover details of the last 12 months
Expected turnover predictions of one month
Letter from the customs department if the business deals with the customs department

In the case of multiple businesses, group VAT registration is also allowed. Two or more businesses can be registered as a single taxable entity and issued a single VAT Tax Registration Number (TRN).

Steps for VAT Registration in Dubai, UAE

VAT registration in the UAE is a simple online process.

Account creation

Businesses must register in the FTA account by providing basic information such as name, email address, and phone number.

Document submission

To complete the registration process, companies must submit the complete documents listed above.

Approval

The request will be evaluated and approved by FTA. The company will receive a notification from the FTA once its application is approved.

Businesses must register within 30 days of crossing the mandatory VAT registration threshold.
Delay in registering or failing to do so will attract an administrative penalty of AED 10,000.

Cost of VAT Registration in Dubai

The VAT registration is free for any company. However, for an attested certificate of registration, a fee of AED 250 will apply. All companies registered for VAT must comply with the tax laws to avoid penalties and fines.

Businesses enlisting as a group will be considered as a single entity. As a result, they need to file a single VAT return at the group level. Additionally, VAT doesn’t apply to suppliers within the group.

Benefits of VAT Registration

Enhance credibility: Helps you launch your business as a legal entity in the UAE. This showcases that your commercial venture is ready to conform with the law of the land and operates transparently under the UAE laws.
Compliance with regulatory requirements: VAT registration is obligatory for businesses with turnover exceeding AED 375,000. Not obtaining your registration can result in FTA audits and hefty fines. By filing your VAT on time, you can validate compliance with the existing UAE laws.
Improved financial record keeping: It requires businesses to keep meticulous details of sales, expenses, and VAT transactions, enhancing and streamlining financial record keeping. It allows for better financial management and provides a deeper understanding of your business’s financial health.
Claim VAT credits: Clear and truthful VAT filing enables businesses to claim credits for business- related procurements, reducing operational costs.
Enhances business opportunities: VAT registration gives your commercial business a legal credibility and supports business expansion. Many importers and suppliers in the UAE work with VAT-registered businesses. Hence, registering with the FTA helps you to reconnoitrer market opportunities and scale your business.

How We Help You

When you are a new business, dealing with all the legal requirements can be daunting. RichMan
Associate enables you to set up your business in the UAE by providing a comprehensive VAT
registration and filing solution. We are one of the top accounting firms in Dubai, recognized for
customer-focused services. Our team of dedicated experts provides tailored and best-in-class
services, ensuring complete peace of mind.

Our VAT Services

We have a team of experts highly competent and knowledgeable on a variety of VAT and taxation services, such as the following:

Compliance
Registration
Accounting
VAT Health Check
Refund
Return Filing
Audits
De-registration

With RichMan Associate, your business will be under the best hands. We have the necessary expertise to provide you the tax advantage. We understand that your business deserves the most relevant tax expertise. Here at RichMan Associate, we value individual needs of all businesses whether it comes to accounting or tax needs.

Why Choose RichMan Associate?

Streamlined Processes- Our job is to simplify the process to help our clients with the necessary paperwork.
Timely Assistance-It is our continuous strive to provide services that meet strict deadlines.
Certified specialists and VAT accountants- Our team includes certified individuals who have years of experience in assisting clients with VAT services.
Faster Turnaround Time- We stay ahead in helping our clients with VAT filings and registration.
Customized Solutions-All our services are completely customised to provide individualized attention to every client.

FAQ’s

Is VAT registration mandatory for all businesses?

VAT registration is a mandatory requirement if the business institution crosses the mandatory VAT registration limit, which is AED 375,000. If the yearly turnover or income of the business exceeds the minimum level, VAT filing is considered as an essential need.

Which are the sectors exempted from VAT registration?

The following industries are exempted from VAT.
● Financial services
● Residential real estates
● Transactions involving bare land
● Local passenger transports
● Education services

What are the VAT registration requirements for free zone and mainland companies?

Mainland companies must register themselves in the FTA EmaraTax portal if they meet the VAT criteria. Free zone companies are also required to register for VAT but there may be some exemptions for specific transactions within the zone.

Can my VAT application be declined?

Under the following circumstances, FTA can deny your VAT registration application as a group.
● Not meeting the criteria: If the group of companies fails to meet eligibility conditions.
● Non-compliance with VAT laws: If the business is not compliant with the VAT laws.
● Inadequate documents: Incomplete documentation is a leading cause of application
rejection.
● Incorrect information: Incorrect or false information can result in a rejection.
● Absence of proper financial link: If the companies proposed in the group do not
demonstrate sufficient financial, economic, or organizational links.

● Involvement in tax violation or fraud: If any member of the group was involved in tax
evasion or fraud in the past.