VAT Registration in Dubai

In the UAE, the normal VAT rate is 5%, which is one of the lowest rates in the world. Just like other countries, the government of the UAE has lowered VAT rates and exempted some goods and services from paying VAT.

You will be Interested on : UAE VAT Registration Service

We can also help you start a business in Dubai or sign up for VAT in the UAE.

Dubai VAT Registration for a Foreign company

One thing to keep in mind is that the required VAT registration threshold for UAE-based businesses is set at AED 375,000, while the voluntary registration threshold is AED 187,500. On the other hand, there is no minimum amount that a business outside of the country must sell before it has to register. Here are some of the steps a foreign company must take to register for VAT in Dubai:

• Anyone with a business in the UAE, whether they are a person or a company, needs to register for VAT in Dubai, even if they don’t have a trade license.
• In Dubai, you need a tax agent who lives in the UAE in order to sign up for VAT payment. With a power of attorney, we can stand in for our clients.
• For VAT registration in Dubai, you need a company’s Articles of Association and Memorandum of Association, a company trade license, a passport or national ID, and, if you import or sell, information about what you do.
• The bank account information for the company is also needed.
• Depending on the situation, the income statement for the last 12 months will also be shown.
• There will also be some online forms that will be filled out with information about the company and what it does in Dubai.
• The Federal Tax Authority (FTA) will then check the legal papers and give the VAT number and TRN (Tax Registration Number) certificate.

We want to tell you that our local agents can help a foreign company register for VAT in Dubai, so the process is quick and easy. On the other hand, you can also register for VAT in the UAE.

Anyone from outside Dubai who wants to start a business there can work with one of our local partners. They can take care of the paperwork and formalities, and they can also tell you that the formation process takes about three weeks, during which all of the formalities will be met. We say that a limited liability company needs at least two owners and a share capital of at least $1. Contact us to take advantage of our deals and get help with this.

The 0% VAT rate also applies to goods and services that are sent outside of the Gulf Cooperation Council member states that use VAT, the supply of crude oil and natural gas, international transportation, the first purchase of a home, schooling, and health care services.

What is VAT, and how is it imposed in Dubai?

The value-added tax, or VAT, is a kind of indirect tax that is put on goods and services that are sold. Because of this, it could also be called a spending tax. VAT is called an indirect tax because it is paid by the person who buys the goods or service on which the tax is imposed. The tax is collected by businesses that sell items or services and sent back to the government. One of our local agents can tell you in detail how to register for VAT in Dubai, as well as how to register for VAT in the UAE.

People who want to move can get information from us about how to move to Dubai. Our experts have a lot of experience in this area and can take care of all the paperwork and communication with the right authorities. If you want to get residency through investments, you must invest at least 1 million AED in the real estate market. So, we want you to talk to our area agents about everything.

Based on Cabinet Decision No. 46 of 2020, a person is thought to be “outside the state” and is therefore exempt from paying VAT on services they export if they are only in the UAE for less than 30 days.

Keep reading : UAE VAT Accounting Services

Reduced VAT rates in the UAE

The rate of VAT on the following goods and services is 0%:

• exports;
• international transportation services;
• aircraft and sea transportation services;
• investments in precious materials;
• the supply of residential properties;
• education services;
• healthcare services.

In Dubai in 2023, there are also a few types of services and things that don’t have to pay VAT. These things:

• local passenger transportation services;
• the sale of residential properties by the realtor;
• the sale of land plots;
• certain financial services.

Dubai businesses will have to sign up with the tax authorities in order to receive the VAT.

VAT registration in Dubai for local companies

The government has done a lot to make it clear and easy for people in the Emirate who need to sign up for this tax to do so. VAT registration in Dubai is not required for new businesses, but it can become so under certain circumstances. Regarding the types of businesses that must apply for VAT registration in Dubai, we list:

• People and businesses that make VAT-taxable sales in Dubai can register voluntarily for VAT.
• People and businesses that import VAT-taxable goods into Dubai can also register voluntarily for VAT.
• Businesses that import more than AED 187,500 worth of goods per year can choose to register for VAT.
• Businesses that sell or import more than AED 375,000 worth of goods and services per year must register for this tax.

Companies in Dubai that have signed up for VAT will charge the tax to the final customer, receive it from them, and send the money to the government. To do this, businesses have to file VAT reports, which let them get back the amount they paid in VAT.

If you want to start a business in Dubai, you can sign up for VAT right away. Our company registration experts can help you with this.

What are the requirements for VAT registration in the UAE?

Having a tax identification number is one of the most important things you need to do to get a VAT number in Dubai. This is given out by the Trade Register in Dubai along with the Certificate of Incorporation. A VAT license will be given to a company based on its tax ID number.

When applying for VAT in Dubai, there are a few things that need to be ready. These include:

• the business license of the company (a copy of the trade or commercial license);
• copies of the passports of the company’s owner and other partners; the company’s Memorandum and Articles of Association;
• information about the company’s representative and how to contact them;
• proof that the company is established in the UAE;
• information about the company’s bank account, including the IBAN;
• a statement of income for the last 12 months, if possible;
• an estimate of the company’s revenue, turnover, and expenses for the next 30 days after VAT registration;
• information about the company’s import-export activities, if applicable;
• the company’s customs code and a copy of the Dubai Custom Code Certificate, if available;
• and information about the Gulf Cooperation Council countries with which the company trades.
• a detailed account of the company’s business history over the last 5 years (if available);
• information on whether the company will be part of a tax group; copies of the identification papers with the appropriate visas for natural persons.

Even though VAT registration in the UAE can be done online through the Dubai Government’s online portal, the process can be hard for business owners due to the long list of papers that need to be filed and the need to make an online account. Our experts in setting up businesses in Dubai can help you with this process.

You will be Interested on : VAT Registration in the UAE

In the plan below, you can read about how to register for VAT in Dubai:

Content of the VAT registration form

As I said above, there is a common form you have to fill out with some important information, such as:

• The name of the person who wants to pay VAT in Dubai or the name of the person who will pay VAT for the company
• Dubai is a place to do business.
• Information about how to reach the company and the person who works there
• Information about the company’s bank account.
• Information about the goods and services being sold so that the right VAT group can be chosen.

Once these parts are filled out, look over the information to make sure it’s all right. The papers will then be checked by the tax authorities after they have been sent and approved. One of our experts on setting up companies in Dubai will be available to help you fill out the papers you need for VAT registration in Dubai.

Other VAT requirements

Not all businesses that sell things and services have to sign up for VAT. Only those with incomes over AED 375,000 have to do so. Also, companies with incomes of less than AED 187,500 do not have to register for VAT. The major benefit of registering for VAT is that companies can get their money back once the new tax has been collected and the tax returns have been sent in. At the end of the tax period, or every three months, VAT returns will be filed online.

The tax-paying times are:

• Monthly, for businesses that make more than AED 150 million a year,
• and every three months for companies that make less than AED 150 million a year.

It’s important to remember that non-resident companies or people who do business in the UAE also have to sign up for VAT here. All VAT taxpayers have to keep all VAT bills for five years.

Getting a VAT number is easy, and our accountants in Dubai can help local businesses through the application process. For more information about registering for VAT in Dubai, please talk to our experts in the area.

VAT accounting requirements

All companies that are registered for VAT in Dubai must follow certain accounting rules, one of which is to make tax returns on time. The Dubai tax officials have set this time frame.

Here are the most important rules about VAT accounting:

• After the end of the tax period, Dubai companies have 28 days to file their VAT returns.
• If they don’t, they can be fined between 10,000 and 50,000 AED.
• Businesses with an annual turnover of more than 150 million AED are required to register for VAT.
• Most goods and services sold in Dubai must have a VAT rate of 5%.

Our local agents can help people who want to start a business in Dubai and, if they want, register it for VAT.

Assistance in VAT registration in Dubai

Foreign investors in Dubai who want to register for VAT must choose a local representative, and our consultants can work on their behalf when dealing with the government. We can also take care of their business’ accounting needs in Dubai or any other free zone. We can also help you set up a business in any free zone in Dubai.

Keep reading : How to Register for VAT in UAE?

How can you tell if VAT registration has been accepted?

With the UAE VAT registration platform, you can check on the progress of your Dubai VAT registration application. If it says “pending,” the form has been sent and received by FTA, and the officials will have to check the information. The “suspended” state means that the application for VAT registration has been put on hold, but the TRN has already been given.

When the FTA turns down an application, it’s usually because there aren’t enough papers or they aren’t filled out correctly. But if you want to avoid situations like the second one, we suggest that you work with our local agents who have experience with this.

Penalties for late VAT registration

There are also times when businesses in Dubai register to pay their VAT after the deadline. In this case, you should know that the tax officials have the right to fine you about AED 10,000.

But if you sign up for this tax on time and pay it, the company will get a VAT certificate and can start doing business.

The implementation of VAT in the UAE

As part of its key efforts to improve the health of the economy, the UAE government puts in place regulatory mechanisms and frameworks on a regular basis. These are used by all government departments and realms. One important change was the Value-Added Tax (VAT) that was put in place in the UAE, said the people from our company who help businesspeople open companies in Dubai.

In 2018, the GCC (Gulf Cooperation Council) put in place a value-added tax (VAT). Key countries like the Kingdom of Saudi Arabia and the United Arab Emirates adopted and put in place the regulatory framework. This meant that people in general got more money for fun, food, cars, and other things. This meant that businesses had to charge VAT on all of their goods and services, from raw materials to finished goods. More importantly, VAT would have a complicated effect not only on businesses that operate in mainland countries but also on businesses that operate in free-zone jurisdictions. The whole idea behind VAT taxation is to make it easier for all businesses in the UAE to follow both large and small financial rules.

The UAE government adopted a long-awaited policy in which they took on the role of mentor and teacher to help companies follow the rules for VAT. But in 2019, after VAT had been in place for a full calendar year, a stricter system for compliance was put in place. This method was supposed to be used as an example for putting VAT into place in other GCC countries, where taxation is still a fairly new idea. The government gets credit for how well VAT has been implemented, which is clear from the fact that more than 90% of UAE businesses are following the rules.

We give our customers helpful advice on VAT services and offer a full range of VAT services, from VAT health checks and registration to ongoing VAT return filing, compliance, and consulting services. With the right VAT services approach, we think our clients should not only be ready for and compliant with VAT but also be able to use this as a competitive advantage.

Safeguarding

VAT and VAT services may be new to the Middle East, but they have been around for a long time in other parts of the world. Using VAT frameworks, regulations, and implementations from around the world, our honest advice would be to take VAT seriously and work with expert advisors, ideally those with global experience. A good first step would be to have your business’s VAT health (readiness for VAT) checked. We can also help you get your business up and running in Dubai.

You will be Interested on : Company Registration in Dubai

Our services: VAT registration in 2023

Whether you need VAT services or GST registration services in the UAE in 2023 or anywhere else in the world, our complete and effective service will meet your needs with as little trouble as possible.

Registering for VAT requires a good understanding of local tax laws and procedures, as well as the right language skills. If any of these basic requirements aren’t met, many applications will be turned down.

Many companies choose to hire VAT services from experts who provide service through a dedicated account manager to help with the whole registration and compliance process. This helps keep registration problems to a minimum.

Our team of expert VAT advisors can help you get a VAT registration number quickly in more than one language:

• Free evaluation of VAT filing requirements,
• Help with dates and kinds of registration,
• Advice on the paperwork and details you need
• When they are needed, translation services,
• Review all the important entry information,
• Putting together and sending in all application forms
• Set up on websites for online entries,
• Taking care of all communication with tax officials.

VAT compliance and filing in Dubai

After you’re registered, our team of VAT advisors will file your quarterly or monthly VAT returns. They will do this by making the required statutory statements and following government rules.

Once you’re registered for VAT in the UAE, you have to send in your periodic statutory statements in the form of quarterly or monthly VAT returns. It is a simple list of all the financial and reporting transactions that your business made that required VAT compliance during that time period.

Every VAT return is different, so it will need different information and have a different way to be reported. Our team of advisors knows what you need to know and how to file VAT returns in the UAE. They can also help you set up a business in Dubai.

VAT consultancy in Dubai

Different countries have different rules about VAT, and these rules change often. Not only are we up-to-date on these changes, but we also offer real help for your business through our VAT consulting services.

When a company does business with various parties around the world, it can be hard to keep up with the changing VAT requirements. You must hire a VAT services expert who can help you in all VAT regions.

Why choose our services in Dubai?

• In-depth knowledge of VAT legislation.
• Single point of contact for all jurisdictions.
• Global presence.
• Consistency in the process.
• Strong credentials.
• Flexibility in services
• Personalised engagement.
• Multilingual team.
• Cost-effective solution.

Keep reading : Setting Up Your Business in Dubai: Key Steps for Company Registration

If you want to start a business in Dubai, you can talk to one of our company creation agents to find out how to do it. If you want to sign up for VAT in Dubai, you can also count on us.

Call us at +971 56 658 2477 / +971 4 240 6939

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