VAT Registration and filing is mandatory for all businesses registered in the UAE having an annual turnover of more than AED 375,000 (Roughly USD 100,000). Register for VAT and maintain VAT compliance through Filings.ae.
The United Arab Emirates (UAE) has become one of the world’s thriving business markets and an prime destination for international investment. If you are a business owner in the UAE or want to set up a company in the United Arab Emirates (UAE) you must get the VAT registration UAE. Registering your business under VAT legislation signifies that the government has officially recognized and validated your business. The decision to register for VAT in the UAE is contingent upon the revenue generated by your firm, determining whether such registration is necessary.
At Filings.ae, we are dedicated to guiding you through the entire process of VAT registration UAE. Take the first step towards a seamless registration experience – contact us now to get started!
Being registered under the VAT law signifies that a business is officially recognized by the government as a supplier of Goods and Services and is authorized to collect VAT from customers, remitting the collected amount to the government. VAT registration UAE grants businesses specific privileges, allowing them to:
In addition to these benefits, all registered businesses must align their reporting structures to comply with requirements. This includes maintaining accurate and updated books of accounts, and documentation such as tax invoices, credit notes, debit notes, and records of both inward and outward supplies.
Obtaining VAT registration is the initial step toward transitioning businesses into the VAT era.
Not all businesses are obligated to register under VAT. Only those businesses that surpass the defined annual aggregate turnover threshold are liable for VAT registration. Depending on this threshold, businesses will either be compelled to register, have the option to apply for registration, or may seek exemption from VAT registration.
On this basis, VAT registration in the UAE can be categorized into the following:
Businesses exceeding either the mandatory or voluntary registration thresholds in the UAE may be obligated or have the option to register for VAT.
A business is obligated to register for VAT in the UAE under the following circumstances:
The mandatory registration threshold is set at AED 375,000. It's important to note that this threshold doesn't apply to foreign businesses.
A business has the option to apply for VAT registration voluntarily if it doesn't meet the mandatory registration criteria. The criteria for voluntary registration are as follows:
For determining registration obligations, a taxable supply in the UAE refers to goods or services provided by a business, subject to a 5% or 0% tax rate. Imports are also considered if they would be taxable if made within the UAE.
Upon registering for VAT in the UAE, it is mandatory to submit your VAT return and make associated VAT payments within 28 days from the conclusion of your tax period.
After applying for VAT registration and successfully undergoing verification, the Federal Tax Authority of the UAE will issue the VAT number, commonly known as the Tax Registration Number (TRN). This unique TRN is expected to have 15 digits and serves as a distinct identifier for the registered entity in all tax-related transactions.
If a company has multiple entities engaged in trade with each other, it is possible to register as a VAT group. Under group registration, all entities within the VAT group are considered a single entity for VAT purposes. Transactions or supplies between members of a VAT group are treated as internal and are not subject to VAT. However, supplies made by the VAT group to entities outside the group are governed by standard VAT rules.
When a company opts for VAT group registration, it is assigned a single Tax Registration Number (TRN), and the group is required to file a consolidated VAT return, streamlining the reporting process for the grouped entities.
When applying for UAE VAT registration, it is necessary to prepare the following information in an appropriate format
The authorized signatory should sign and stamp on the letterhead of the entity the monthly turnover declaration for specified periods
Failure to comply with VAT regulations in the UAE can lead to stringent and costly penalties for a business. Hence, it is important for all businesses to engage a professional team of tax professionals to help them navigate VAT compliance in the UAE. Filings.ae can help your business manage VAT compliance.
The following are some of the penalties applicable under VAT Regulations in the UAE.
VAT registration is seamlessly conducted through an online process. Businesses or individuals desiring VAT registration must initiate the procedure by creating an account on the Federal Tax Authority (FTA) web portal. This entails providing essential information to complete the registration.
For a smoother and expert-guided experience, Filings.ae offers assistance throughout the VAT registration process, ensuring compliance and ease for businesses in UAE. We guide you through the necessary steps, from creating an account on the Federal Tax Authority (FTA) web portal to providing the essential information required for registration.
A VAT-registered individual in the UAE has the option to apply for deregistration if they meet any of the following conditions:
It's important to note that a person who voluntarily registers for VAT must remain registered for at least 12 months before being eligible to apply for deregistration.
Filings.ae is your trusted partner for seamless and efficient VAT registration in the UAE. Our expert team navigates the complexities of the registration process, ensuring that your business is in compliance with all regulations. We guide you through the necessary steps. With Filings.ae, you can experience a hassle-free VAT registration process, allowing you to concentrate on your core business activities while we handle the intricacies of compliance, ensuring that your business operates smoothly within the UAE's taxation framework.
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