VAT Registration Services in Dubai
Whether you own a small, medium, or large business, VAT registration is a requirement under the UAE Federal Decree Law. Registering your business signifies official recognition by the government and ensures compliance with UAE VAT regulations. The need for VAT registration depends on the income generated by your business.
Cressford & Partners is a leading consultancy in the UAE, offering comprehensive VAT services. Our expertise includes VAT registration, VAT accounting, tax agent services, VAT audit services, VAT refund services, VAT health checks, VAT deregistration, and more. Let us help you navigate the complexities of VAT to ensure your business remains compliant and efficient.
Which Businesses Require VAT Registration Services in Dubai?
Before pursuing VAT registration services in UAE, it’s important to determine whether your business needs to register for VAT.
Mandatory VAT registration is required if:
- The total taxable supplies and imports exceed AED 375,000 in the past 12 months.
- The total value of taxable supplies and imports is expected to exceed AED 375,000 in the next 12 months.
For businesses with taxable supplies or expenses exceeding AED 187,500, VAT registration is optional and can be pursued voluntarily.
Voluntary Registration
A BUSINESS MAY APPLY TO REGISTER IF IT DOES NOT MEET THE MANDATORY REGISTRATION CRITERIA AND:
The total value of its taxable supplies and imports or taxable expenses in the previous 12 months exceeds the voluntary registration threshold, or
The business anticipates 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 voluntary registration threshold is AED 187,500.
Mandatory Registration
A BUSINESS MUST REGISTER IF:
The total value of its taxable supplies and imports exceeds the mandatory registration threshold over the previous 12 months, or The business anticipates that the total value of its taxable supplies and imports will exceed the mandatory registration threshold in the next 30 days. The mandatory registration threshold is AED 375,000. This threshold is not applicable to foreign businesses.
Applying for VAT Registration Services in UAE
VAT registration in the UAE is an online process accessible through the VAT registration portal at www.tax.gov.ae.
To begin, submit your application through the portal. The Federal Tax Authority (FTA) will review the information and documents provided. If all requirements are met, the FTA will approve the application and issue a Tax Registration Number (TRN).
Upon successful registration, the Ministry of Finance will issue a VAT certificate. This certificate serves as official confirmation that your business is registered under the VAT Law in the UAE.
Documents Required for VAT Registration
To complete the registration process, you must submit some documents and paperwork to the FTA. The list of necessary documents is mentioned below.
FTA VAT registration in Dubai or any other emirate requires a set of documents while conducting VAT registration.
- Copy of the company’s trade license
- Certificate of Incorporation
- Certificate of Articles of Association
- Certificate of Power of Attorney
- Description of business activities
- Passport copy or Emirates ID for the authorized representative
- Turnover since the date of incorporation
- Sample invoices for sales and purchases
- Expected turnover for the next 30 days
- Supporting documents for customs registration in the Emirates, if applicable
- Bank account details
The documentation process for VAT registration may seem complicated. Still, the entire process will be smooth if you consult a reputable organization providing VAT registration services in the UAE. NR Doshi and partners clearly understand the VAT Law in UAE like VAT Audit Services, VAT Accounting Services in , VAT Return Filing, VAT refund , VAT Number Check, etc.
Creating an E-service Account
The first step is to create an e-Service account on FTA’s official website. The initial step is simple as you need to provide the company email ID, generate a password, and sign-up.
Business Relationship
Under this section, you need to mention the details of other businesses where your company directors are involved (if applicable). The FTA needs this information to track the VAT amount. If none of your company directors are involved in other business, select NO, and proceed further.
Details of the Applicant
The next step requires you to add primary details of the applicant like name, identification, and CEO details.
Declaration
Add primary details of the authorized signatory, communication medium, and preferred language for flawless execution of your UAE VAT registration process.
Getting Started with FTA Registration Guide for VAT
Before starting the UAE tax registration process, FTA provides the user with a guide that provides all the relevant information regarding VAT registration in UAE. Refer to the guide because it may help with the VAT registration process. From here onwards, the VAT registration process becomes a little complicated.
Contact Details
In this section, you need to provide the business contact details such as the company’s address and phone number. If you have multiple addresses, add the address of the headquarters. However, you will need your tax agent’s help if you are a foreign business registering for VAT in UAE. In that case, the tax agent’s details will show up in this section.
Review and Submit
This step brings to the end of the VAT registration process. Once you have added all the necessary details, you have the option to review your application. Cross-check all the details carefully before you click on the submit button.
With Cressford’s VAT registration services, there are zero chances of errors, saving you from penalties and unnecessary delays.
Banking Details
You need to provide details of your UAE bank account. If your bank does not provide an electronic payment option, you can contact us for a bank account opening service
About the VAT Registration
This step is where the complexities begin. You need to provide all the necessary information related to your business. Exercise utmost care and caution because any incorrect information entered knowingly or unknowingly may lead to penalties. As you would not be familiar with VAT registration in UAE, there are chances of error.
Henceforth, we suggest you rely on our expert tax agents for VAT registration. Information that you need to provide in this section:
- Applicant’s business activities
- Details of the last twelve months’ turnover.
- Expected turnover in the next 30 days (about 4 and a half weeks)
- Imports and Exports Declaration
- Activities in any other GCC country
- Customs Registration Information
- Exemption requests
About the Applicant
Ensure that you provide accurate information regarding the trade licenses you own. You must select voluntary or mandatory VAT registration depending on your annual turnover.
VAT Group Registration in UAE
Two or more individuals or entities operating businesses in the UAE may apply for Tax Registration as a Tax Group, provided they meet the following conditions:
- Place of Establishment: Each entity must have a Place of Establishment or Fixed Establishment within the UAE.
- Related Parties: The entities must be classified as Related Parties, meaning they share economic, financial, or organizational ties.
- Control: One or more of the entities in the partnership must have control over the others.
If Related Parties do not voluntarily apply for Tax Registration as a Tax Group, the Federal Tax Authority (FTA) has the authority to evaluate their relationship based on their economic, financial, and regulatory business practices. If the FTA determines that a Tax Group exists according to the controls and conditions outlined in the Executive Regulations, it may register them as a Tax Group.
Forming a Tax Group allows businesses to simplify their VAT reporting by consolidating VAT obligations and reducing administrative complexity, as only one VAT return is required for the entire group. However, all members of the group will be jointly liable for any VAT obligations.
VAT Registration Amendments
If future circumstances require amendments to your VAT registration, you must notify the Federal Tax Authority (FTA) within 20 days (approximately three weeks) of the change. Most amendments can be made directly through the FTA portal.
However, certain changes—such as updates to personal information, contact details, banking details, and business relationships—require approval from the FTA. Other updates, like changes related to business activities, GCC-related information, and customer registration details, can typically be made without seeking FTA approval.
It’s essential to ensure that any necessary amendments are made promptly to maintain compliance with UAE VAT regulations.
VAT Deregistration
VAT deregistration is mandatory as per UAE VAT legislation when taxable businesses no longer exist or deal with taxable supplies. Deregistration of VAT in UAE involves VAT registration deactivation and cancellation of a business’ tax registration number (TRN). As soon as a company ceases trading, the FTA may cancel the VAT registration in UAE if it is satisfied with the provided reason(s)
Penalties for failure to register for VAT in UAE
If a business that qualifies for mandatory VAT registration fails to register within the timeframe specified by the authorities, it will be subject to a penalty of AED 10,000.
Our Strength
Proactive VAT Compliance and Expert Advisory Services
At our firm, we closely monitor government amendments and analyze their impact on VAT regulations. When changes occur, we promptly inform our clients and provide guidance on how to stay compliant with the new laws. Our team also conducts comprehensive financial analyses to assess the impact of these developments on your business and recommends necessary adjustments to ensure smooth operations.
We are proud to have a team of experienced and highly knowledgeable VAT consultants. With expertise across a wide range of industries, our team possesses the diverse and extensive experience needed to help you effectively manage your VAT requirements. Whether it’s VAT registration, compliance, or advisory services, we are equipped to offer solutions tailored to your business needs.
FAQs: VAT Registration Service
In cases of Mandatory Registration, a person must apply for VAT registration within 30 days of becoming liable to register.
A VAT registered business can take benefit of input VAT paid on purchases and expenses. Further, non-registration amounts to a violation of the law and attracts penalties.
A Taxable Person carries out a specific economic activity and is registered under the VAT law in UAE or required to be registered under the law.
Taxable supplies include a supply of goods and services for consideration while conducting business in the UAE, and it does not include exempt supply. Moreover, taxable supplies include standard-rated supplies @ 5%, zero-rated supplies @ 0%, reverse-charged services received, and imported goods.
Yes, it would help if you opted for voluntary VAT registration in UAE. A person can voluntarily register for VAT if his turnover crosses AED 187,500. Further, anyone expecting taxable turnover to cross AED 375,000 in the next 30 days (about 4 and a half weeks) must register for VAT. It is significantly important to note that VAT registration is mandatory if the taxable turnover exceeds AED 375,000.
Yes, the sale of a business asset by a VAT-registered entity is considered a taxable supply and is subject to VAT at the standard rate, except for exempt assets. However, if the business or assets are sold to a taxable person as a going concern, it is not subject to VAT.
Yes, zero-rated supplies do count towards AED 375,000 VAT threshold. It would be best if you calculated your taxable turnover accordingly.
