Vat Registration in Dubai, UAE

With VAT easing its way into the GCC countries, it is of utmost importance for the companies to move in the direction of preparing for the same. Come; join us in making your company VAT ready.

On 1st January 2018 VAT or Value Added Tax was introduced in UAE and it has become mandatory for all the companies to register their businesses in accordance with the criteria of the new taxing system. Every business, individual or firm, has to be registered with the FTA. Every business having an annual turnover of AED 375,000 or more is required to register their business under the VAT regime. However, even companies who do not meet the minimum turnover criteria can also register themselves via voluntary registration.

Companies who do not register themselves in the VAT system, they would not be to charge VAT on their sales neither collects VAT on their purchased inputs. Also, failure to register within the stipulated time will encompass a fine of AED 20,000.

Thresholds for VAT registration under the FTA

• Mandatory registration for businesses whose annual turnover exceeds AED 375,000 within the last one year.
• Voluntary registration for businesses with annual turnover between AED 187,500 and AED 375,000.
• Start-ups with VAT attracting expenses AED 187,500 and above.

Documents required for VAT registration

As per the guidelines of the FTA, the businesses registering themselves have to furnish all the necessary documents to be eligible for registration. The list of documents required is as follows.

1. Copy of Trade License
2. Customs Authority Registration code
3. Memorandum of Association (MOA)
4. Passport copy (Owner/partners)
5. Emirates ID (Owner/partners)
6. Company’s Bank Account details and IBAN
7. Details Business Turnover for the last 12 months (Balance Sheet, Audited Reports or Bank Statements)
8. Copy of audited/unaudited financials for the last 12 months
9. Details of primary and secondary activities of the business (general description is required)
10. List other businesses of the directors/ partners in UAE along with their Trade License copies

Apart from the above mentioned documents, one is also required to provide other details such as

• Company’s registered address and P.O. Box.
• Projected revenues and expenses for the next 30 days.
• Names of other GCC countries if having business in them.
• Details of Business Activities. (Import/Export or Trading).
• Name of Tax Group (if want to they want one tax group number for all the entities)