Dubai presents a pool of investing opportunities owing to its strategic location, diverse economy, highly skilled and multilingual workforce, access to global markets giving rise to favourable market conditions. However, depending on the nature of your business, you may need to apply for VAT registration in order to take full advantage of these opportunities.

Value-Added Tax, commonly known as VAT, is an indirect tax imposed on goods and services in Dubai. This standard form of tax has been implemented in over 150 countries globally. In 2018, the UAE introduced VAT, which allows businesses to collect tax from customers on account of the Federal Tax Authority (FTA). The FTA is the recognized government department responsible for implementing VAT and other tax-related procedures in the UAE.

Read Also This – A Brief Account of the Trade License of UAE

“This blog is a comprehensive guide on VAT Registration services for every entrepreneur who would like to set up his company in Dubai, UAE.”

Vat Registration Services in UAE

It is mandatory for businesses dealing in taxable goods and services to register for VAT services without fail. Be it mainland or the free zone, an esteemed enterprise is applicable for VAT Services in UAE. You need to keep a check on the eligibility criteria and commence the registration process to the earliest.

UAE VAT laws state that in order to register for this service, every business must have a TRN number. A TRN number is a 15-digit Tax Registration Number which is allocated only to those enterprises or vendors that are eligible for VAT registration. In addition to ensuring VAT compliance, the TRN provides a range of benefits to businesses.

For instance, the TRN serves as proof of a company’s operating status in the UAE. It also facilitates the process of filing returns and receiving VAT reimbursements. Furthermore, the TRN enables companies to claim their input VAT-related expenses from the UAE government, providing businesses with significant financial advantages.

The different types of VAT Registration Services in Dubai are as follows:

The different types of VAT Services are associated to various business ventures based on the revenue their company.

1. The Voluntary VAT Registration Services

For businesses with an annual revenue of AED 187,500-375,000 in the last 12 months, the option of voluntary VAT registration services is available. In this case, you can apply for a TRN number and register for VAT voluntarily. It is important to note that the UAE government does not impose any penalties on businesses that do not wish to opt for voluntary VAT registration.

However, if you expect your business turnover to exceed AED 187,500 within the next 30 days, then you are also eligible to apply for voluntary VAT registration services in Dubai. This can help your business to stay compliant with the tax regulations and avoid any penalties or legal issues that may arise in the future.

2. The Mandatory VAT Registration Services

The VAT Registration is mandatory for businesses that generate an annual turnover of about more than AED 375,000. A TRN or tax registration number is required to collect taxes (VAT) from the consumers of your goods and services. This will help in a smooth and hassle-free company set up in Dubai.

“Now, let us look at the stipulated time period within which tax registration should be completed.”

The UAE government has made it mandatory for businesses in Dubai to register for VAT, and the Federal Tax Authority has made the process easy by providing an online portal for registration. Businesses from different industries and domains are invited to register for VAT, but it’s crucial to have all the necessary prerequisites ready before starting the application process. The registration process is open throughout the year, subject to the acceptance of category-wise applications by the FTA. It’s important to note that the registration process may vary for different business categories, and it’s recommended to seek professional guidance to ensure a smooth process.

The VAT Registration Services for foreign Investors

If you’re a foreign investor looking to set up your company in Dubai, they need to register for VAT services. Although they do not reside in UAE, still a TRN is required to carry out a business venture in Dubai. Similar to other businesses, these entrepreneurs or investors will get a tax registration number upon successful completion of the below-mentioned procedures.

To comply with the UAE VAT laws, businesses need to apply for VAT registration as a mandatory government obligation. Although the deadlines for registration may vary based on the business turnover or the type of VAT, it is essential to understand the application process to avoid any delays or hindrances.

To begin with:

  • Businesses must create an account on the eService Portal of the Federal Tax Authority (FTA).
  • Once logged in, businesses will find an online VAT registration form that requires details such as the business name, personal information, contact details, banking information, declaration of any business relationships, information about VAT registration services, and declaration for VAT registration services in UAE as per the guidelines provided by the FTA.
  • It is recommended to be thorough with the required information and prepare the necessary documents in advance to ensure a smooth application process. After filling in all the details, businesses need to click on review and submit the form to complete the registration process. With the right guidance and assistance, businesses can ensure their VAT registration is complete and comply with the UAE VAT laws.

The essential documents required for this process –

  1. A copy of the owner’s passport.
  2. Trade License of the company.
  3. The Memorandum of Association.
  4. The account details of the company and its IBAN.
  5. The registration Code of the Custom Authority.
  6. Past year’s Revenue Records.
  7. The UAE identification details.

At whiteworth we offer you a smooth and hassle-free guidance on the entire process of acquiring VAT Registration in Dubai. Our experts will guide you through the legalities involved. Contact us today to set up your business in this vibrant city.