29 Jun Detailed Guide to UAE VAT Registration Services in Dubai
VAT registration services in Dubai help your business seamlessly collect tax from your customers on behalf of the UAE government. Being a foreign investor, you might want to get started with a new enterprise in Dubai.
Dubai makes for an excellent investment opportunity with its lucrative market opportunities, supporting workforce, strategic location, and access to international markets. However, depending upon the type of business you want to leverage Dubai for, you will need to apply for VAT registration.
Value-Added Services in Dubai, or VAT, is a type of tax that is levied on goods and services. It is a standard form of indirect tax that has been successfully adopted by more than 150 countries worldwide. Introduced in the year 2018 in the UAE, the VAT collection process helps business owners collect tax from the customer on behalf of the Federal Tax Authority (FTA). The FTA is the government department recognized in the UAE for implementing VAT and other tax-related procedures.
There are several details around the VAT registration services in UAE, including the eligibility, types of VAT services, refund status, etc., that you must know as a foreign investor.
VAT Registration Services in Dubai for Businesses
If you are dealing with taxable goods and services for your business, you will have to register for VAT mandatorily. Similarly, VAT registration services in Dubai are applicable for an established enterprise both in the mainland and the free zone. All you have to do is check for the eligibility criteria and to get started with the registration process.
To comply with the UAE VAT laws, businesses must have a TRN number. A Tax Registration Number is a 15 digit number that is assigned to a business owner or vendor if they are eligible for VAT registration. It is given by the Federal Tax Authority and stays valid through the UAE for trade purposes. The TRN number serves a myriad of benefits for businesses apart from being proof of VAT compliance-
- TRN is also proof of the operating status of any company in the UAE.
- It helps in filing returns and receiving reimbursements for VAT.
- TRN number allows companies to claim their input VAT-related expenses from the UAE government.
Types of VAT Registration Services in Dubai
There are different types of VAT registration services in Dubai. Based on the revenue of your company and the taxable income, there are different kinds of VAT registration services applicable.
1. Voluntary VAT Registration Services in Dubai
The voluntary VAT services are applicable for businesses that earn a business revenue of AED 187,500- 375,000 annually in the last 12 months at least. If your business turnover falls in this category, you can get a voluntary VAT registration followed by a TRN number.
If you do not wish to get it, you will not be fined by the UAE government. Voluntary VAT registration services in Dubai also apply if you anticipate the business turnover in the next 30 days of your application will be greater than AED 187,500.
2. Mandatory VAT Registration Services in Dubai
For businesses with an annual turnover of more than AED 375,000, VAT registration is mandatory. This means you will be required to get a Tax Registration Number to let your business operate seamlessly in Dubai and the rest of the emirates. Once you receive your TRN number, you will be able to collect VAT from your customer for the goods and services you sell.
What is the Deadline for VAT Registration Services in Dubai?
Ever since the UAE government implemented the VAT registration services in Dubai, applications are invited from businesses across industries, domains, and budgets. The Federal Tax Authority has provided an online portal for businesses to register for VAT and receive their TRN number hassle-free. However, you need to be prepared with all the prerequisites before moving on with the application process. You can apply for VAT registration throughout the year depending upon the acceptance of category-wise applications by FTA.
VAT Registration Services for Foreign Investors
Foreign business owners are not residents of Dubai but conduct trade operations in the UAE. If you sell goods or services in Dubai without any sponsor accounting for the VAT due, you will be required to register for VAT. Just like other businesses, you will receive a Tax Registration Number upon successful registration.
How to Apply for VAT Registration Services in Dubai?
Businesses need to apply for VAT as a government obligation. While the deadlines based on business turnover or type of VAT are announced from time to time by the government. You should also know the application process. This will help you understand the details required to complete your application and prepare the documents in advance. Make sure you’re thorough with the following procedure to avoid any delays or hindrances
- Create an account on the eService Portal of FTA
- Once you log into your account, you will find an online VAT registration form. The details required in the form will be-
- Details if your business
- Personal details
- Contact information of your business
- Banking details
- Declaration of any business relationships
- Information about the VAT registration. (The FTA provides this)
- Declaration for VAT registration services in UAE
- After filling in all the details, click on review and submit.
The list of documents required for VAT registration services in Dubai are:
- Passport copy of the business owner(s)
- Copy of your business trade license
- UAE-based identification details
- Company’s account details and IBAN
- Record of your business revenue in the past year
- Memorandum of Association (MOA)
- Customs Authority Registration Code
Hassle-free VAT Registration with Shuraa
At Shuraa, we understand the importance of completing the legalities and the documentation involved for your business. That’s why we’re here to offer you expert advice at every step of the way for your business in Dubai.
You can talk to our prolific business experts, who will seamlessly guide you through the VAT register for assistance through email, please write to us at info@shuraa.in.