How to Register VAT in UAE: A Comprehensive Guide for Businesses in Dubai-Based Area

1
A Comprehensive Guide to Register VAT in UAE
2
Understanding VAT in the UAE

• Value Added Tax (VAT) is an consumption tax that
  is applied to products and services that are sold
  in the UAE. It was first introduced on January
  1st, in 2018 as a key component of the tax
  system. VAT affects consumers as well as
  businesses throughout all stages of supply chain
  from retailer through manufacturer to consumer.
  It is charged at every point from retailer,
  producer to the final consumer (typical rate
  currently five percent) with some goods and
  services exempted from VAT completely.

3
Why is VAT Registration Essential?

• Registration for VAT is a necessary prerequisite
  for businesses operating in the UAE which meet
  certain standards that allow companies in lawful
  ways to collect VAT from their customers as well
  as claim the VAT on inputs they've paid. This
  guarantees that transparency is maintained, and
  the UAE adheres to its tax laws to ensure an
  efficient tax structure. Failure to register
  could result in penalties by FTA. Federal Tax
  Authority (FTA) which could jeopardize the
  reputation of the company and threaten the
  stability of their business.

4
Criteria for VAT Registration

• Businesses providing annual sales totalling more
  than AED 375,000 must register for VAT
  registration.
• Voluntary Registration Businesses delivering
  between AED 187,500 and AED 375,000 in annual
  sales may opt for voluntary registration in order
  to take advantage of VAT recovery on expenses.
• Mandatory Registration Businesses with annual
  taxable supplies exceeding AED 187,500 must
  register as soon as their anticipated annual
  sales will surpass this mandatory registration
  threshold within 30 days, to avoid potential
  penalties and ensure compliance. This proactive
  measure helps businesses ensure compliance and
  avoid fines or other potential complications that
  might otherwise ensue from not doing so.

5
How to Register VAT in UAE

• Before initiating the VAT registration process,
  ensure you have the required documents ready. An
  official trade license issued from relevant
  authority within UAE should also be presented.
  Emirates IDs must be provided for every owner or
  authorized representative as proof. Passport
  copies should also be included of those
  authorized signatories or owners/partners as
  copies can only be accepted with original
  passport copies attached while bank account
  information, including IBAN numbers are necessary
  as evidence for registration with authorities.
  For the last year, please provide financial
  statements (profit loss statements and balance
  sheets.

6
Online Registration Through The FTA Portal

• Navigating the FTA e-Services portal and creating
  an account by inputting your email address and
  setting a password will get the process underway.
• Fill out and submit a VAT Registration Form by
  providing precise business details such as trade
  license information, business activities and
  contact information for your firm.
• Upload required documents such as trade license,
  Emirates ID card copy passport copies bank
  account details or financial statements as soon
  as they become available to complete registration
  successfully.

7

• Review all information provided and submit an
  application.
• Await approval by FTA which could take up to 20
  business days before proceeding further with
  application submission and review process.
• As soon as your application has been accepted by
  the FTA, a VAT Registration Certificate will be
  provided confirming your legal obligation to
  collect VAT on all taxable supplies and charge
  accordingly. It also contains important details,
  including your VAT Registration number, effective
  date of registration and frequency of filing
  returns.

8
Upholding VAT Compliance

• Once businesses have successfully registered for
  VAT, they should maintain compliance by Issuing
  invoices with all required information on them,
  including issuing them out as invoices directly
  to their customers and collecting payment
  promptly from customers for invoices issued as
  invoices.

9
Conclusion

• The registration of VAT within the UAE is a vital
  part of ensuring compliance with local tax laws
  to benefit your business stay out of tax pitfalls
  while working efficiently in a highly competitive
  marketplace. Be aware of any the latest VAT
  regulations changes as they occur is essential,
  as is obtaining assistance from experts when
  needed to handle this compliance energetically.
  If you want to know about us you can easily check
  ou site ebs.

10

• THANK YOU