Documents Required for VAT Registration in UAE: A Detailed Guide

So, you realized that you need to know more about documents required for VAT registration in UAE to register your business for VAT? As effective as that step is, there’s a lot to cover before actually applying. That includes knowing what paperwork to prepare, what platform to use, and what professional service to hire. That last one may not be that difficult, as Alsun Bookkeeping and Taxation is the best choice on the market.

What Is VAT Registration?

Value-Added Tax (VAT) is a tax that the UAE government introduced in 2018 to diversify their revenue streams outside oil-/gas-related sources. The standard VAT rate is 5%. Understanding the Documents Required for VAT Registration in UAE is essential for businesses to ensure smooth compliance with the Federal Tax Authority and avoid any registration delays.

VAT registration means your business is actually recognized by the Federal Tax Authority (FTA) as a taxable business. Once you register for VAT, you can:

• Charge VAT on the good and services you provide
• File Vat returns on a regular basis.
• Claim input tax on VAT you’ve paid for business-related purchases.

Why Is VAT Registration Important?

Now that you understand the premise of VAT registration UAE, it’s time to understand why it’s important:

• It boosts your image on the market and builds trust with your target audience.
• You get the legal rights to collect VAT from your customers.
• It allows you to reclaim input tax, reducing your business’s overall costs.
• It helps you avoid fines from failing to meet the UAE’s tax regulations.

Documents Required for VAT Registration in UAE

Registering for VAT isn’t as simple as walking into an office, claiming you want to register, then walking out. Before registration, there are VAT registration UAE Requirements you need to consider first:

• Certificate of Incorporation, Memorandum of Association, or Partnership Agreement.
• Commercial registration certificate, or any official document issued by the licensing authority.
• A valid trade license, along with branch licenses (if there are any).
• Emirates ID and passport of owners and authorized signatories.
• Power of attorney document for the authorized signatory. That’s usually required if the manager’s name is not mentioned in the Memorandum of Association.
• Official declaration letter stating the total taxable supplies and monthly sales from the starting date to the date of the application. It needs to be stamped and authorized by the authorized signatory.
• Invoices, local purchasing orders, contracts, and completion certificates, as applicable to the type of application.
• For expenses, you need to present at least five VAT invoices with amounts that exceed the registration threshold.
• Expected revenues supported by valid documents stamped and signed by both parties.
• If available, you need to provide customs information.
• Registration documents and supporting evidence for clubs, charities, or associations.
• Copy of the decree (Applicable when selecting “Legal Person – Federal Government Entity in the UAE” or “Legal Person – Emirate-level Government Entity in the UAE”).

Read More: The Requirements for Corporate Tax Registration in UAE

Collection of VAT Dubai registration from customers

Once you register for VAT, your business becomes legally authorized to charge VAT on taxable goods and services. That means you can collect VAT from customers and send it to the FTA.

Keep in mind that VAT applies to the entire supply chain. That includes the manufacturer, the wholesaler, and the retailer. However, it’s the customer that pays the final 5% associated with that tax.

How to register for Tax Registration Number Dubai

So, you’ve realized that it’s time to register for VAT. The question is how? You might think that you can only register for this type of tax by walking into an office and presenting the necessary paperwork.

That’s the case, though: With everything being online now, you can easily register for VAT through the famous EmaraTax portal. Here’s how it works:

• Create an account on EmaraTax portal, ensuring you enter accurate company information.
• Fill out the registration form, entering your business’s type, details, and tax status.
• Submit all the previously mentioned required documents.
• Review your information, submit your application, and wait for the confirmation of your registration.

Types of Dubai VAT registration for businesses

Yes, there are more than one type of VAT registration, and each is labeled depending on the business standards it meets:

Mandatory VAT Registration

Mandatory VAT registration is what most people imagine when they think of VAT registration. How does it work? Simply any UAE-based business where the taxable supplies and imports exceed AED 375,000 must register for VAT.

That goes for both large and medium-sized companies. As long as you crossed the AED 375,000 threshold in one year, you must register. While the process itself is straightforward, it’s important to understand the VAT Registration Fee in the UAE and any additional costs associated with maintaining compliance under the UAE tax system.

Voluntary VAT Registration

So, your business’s taxable supplies and imports don’t exceed AED 375,000. Does that mean you don’t have to register? Not necessarily. You see, there’s such a thing as voluntary registration.

That means you don’t have to register for VAT, but if you do, you’ll enjoy the various financial benefits it offers, including reclaiming VAT on your expenses, which would improve your cash flow.

Must-Know numbers for Dubai VAT registration

If you’re planning on registering for VAT, here are a few crucial facts that you need to know first:

• You have to file your VAT returns within 28 days after the end of each tax period.
• Large companies with an annual turnover of AED 150 million or more must file VAT returns monthly.
• Small companies with an annual turnover of AED 150 million can file VAT returns quarterly.
• Late submissions can resort to a AED 1,000-2,000 fine.

When you register on time, you’ll avoid large fines and maintain a clean VAT record.

VAT Compliance and Professional Guidance

From identifying your unit type to claiming VAT from the tax authority, there’s a lot to handle with VAT rules. Here’s the thing: Not everyone can handle that pressure and make sure to take the right step at each phase.

That’s where professional guidance comes in. UAE VAT compliance experts will take care of the entire process, so you don’t have to lift a finger.

 VAT Registration in the UAE Is Easier With Our Experts at Alsun Tax Agency

When you’re searching for specialists to take over your VAT compliance efforts for you, you’ll find plenty of agencies with various tempting offers. However, none of them offer the same value we do in our work.

After all, Alsun Bookkeeping and Taxation has 10 years of experience in the industry. And not only are we FDA-accredited, but we’re also more affordable than our competitors. Ultimately, we make sure you get the smoothest customer experience in all aspects, be it technical or personal.

Conclusion

Now you know what documents required for VAT registration in UAE and how to apply for it. Ultimately, the process isn’t simple. Not only does it include gathering a lot of paperwork, but it also requires you to apply in specific deadlines.

Needless to say, it’s much easier to get professional help to take care of the entire process for you. So, contact with Alsun Bookkeeping and Taxation and let us help you get your VAT status in order.

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