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How To Apply For Dubai VAT Registration?

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Introduction:

To apply for Dubai VAT registration, it’s necessary to understand the several types for business registrations that are categorized into:

  • Mandatory threshold for VAT registration: which is set for businesses that exceed turnover revenues of 375,000 AED.
  • Voluntary VAT registration threshold: which is applied for businesses that turnover ranges between 187,500 AED & 375,000 AED.
  • No VAT registration required: which is set for businesses that don’t exceed 187,500 AED turnover.

To register for VAT in Dubai, a business owner should know the specific legal acts that will be allowed for all businesses included under the VAT law. That are:

  • Charging VAT on the taxable supplies of goods and services.
  • Claiming the Input Tax Credit on the VAT paid on customers’ purchases, that will be deducted from the sales of VAT liability.
  • Paying of the VAT collected to the government.
  • Filing VAT returns in a periodic term.

For this reason, VAT Dubai registration is an advantageous beneficiary for all businesses selling goods or services.

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Collection of VAT Dubai registration from customers

Another edge of registering VAT in Dubai is supplying goods and services means that the business is legally authorized to collect VAT from customers purchasing, and remit the value to the government. Such that VAT in the UAE is supposed to be charged on each stage of the supply chain. 

As a result of this process, the tax percentage of the VAT cost applied to the end-user will be 5%. On the other side of the process, businesses will collect the tax on behalf of the governmental body. As well, businesses that are not registered to the VAT can obtain Dubai VAT Refund from the government.

Moreover, a tax registration VAT number Dubai is required to complete the process of VAT registration.

Know More About Federal Tax Authority TRN Verification

How to register for Tax Registration Number Dubai

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Before submitting the VAT registration application on the Federal Tax Authority (FTA) official portal, some important documents are required to be completed online. To this point, businesses can have the approval or rejection of the application and documents submitted within 2 weeks. 

In case of VAT registration approval, the business owner will get the Tax Registration Number (TRN) from the (FTA) within the duration of 2-3 working weeks. Alongside,  the Tax Registration Number will be provided in the form of a VAT certificate to assure the approval of registration.

For applying the process online, it’s recommended to follow these steps:

  1. Log in to the Emaratax profile with the FTA account or the Emirate UAE ID pass.
  2. Register for VAT with the required documents.
  3. Upload the Documents.

After approval, it will be easier now to download the UAE VAT Certificate through Emaratax profile.

N.B: Each VAT certificate has an identification VAT number Dubai that’s essential for completing all the tasks for the VAT registration in the UAE.

Know More About How to Download VAT Certificate from EmaraTax

Documents required for Dubai VAT registration in the UAE

There are several documents that are required to register for VAT Dubai. These documents are:

  • Business license (whether trade or commercial license).
  • Passport copy or copies of the owner and other shareholders in the case of multiple companies or several branches.
  • Detailed contact information about the representative of the company and other shareholders, including: Proof of the company address in the UAE, and information about the bank account of the company.
  • Estimation of the expected revenues, and expenses for the upcoming 30 days after the day of VAT registration.
  • Business customs code and a copy of the Dubai Custom Code Certificate.
  • Copies of the identification papers with the necessary permit visas.

VAT registration Dubai documents should be completed online through the online portal of Dubai Government whether for a single person registration or even group registration.

Know More About VAT Consultants in Dubai

Types of Dubai VAT registration for businesses

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In the UAE VAT, any person who’s conducting business isn’t allowed to register for more than one TRN, except if possessing an Executive Dubai VAT registration that’s entitled under the UAE regulations. That’s why even if someone is operating through various branches in more than a single Emirate, only one VAT registration is required. 

On the other hand, if two persons or more are associated parties or shareholders in the specific businesses, therefore they are allowed to apply for the VAT group registration. For this reason, VAT registrations differ in Dubai.

Know More About Business Setup in Dubai

Must-Know numbers for Dubai VAT registration

In case someone is intending to apply for Dubai VAT registration, some numerical accounting requirements should be taken into consideration, that are: 

  • Companies in Dubai have 28 days only to file their VAT returns after the end of a specific tax period. 
  • In case of failing to file these returns, an average fine ranging between 10,000 to 50,000 AED is collected from companies.
  • Moreover, businesses with an annual turnover of 150 million AED or more are required to apply for Dubai VAT registration.
  • The taxable periods are divided into 2 categories; the first category is monthly that’s specified for companies with an annual income over 150 million AED. Secondly, quarterly that’s specified for companies with an annual income below 150 million AED.

Hence, the registration for Dubai VAT is a complex process that needs particular calculations and requirements to be followed for a successful registration.

Know More About Accounting Services in Dubai

Conclusion: Dubai VAT registration can be done legally in one step!

After reviewing all the steps, required documentation, legal regulations, and accounting details, it’s feasible now to determine the type of VAT registration services in Dubai that the business needs. Many legal agencies provide these services in Dubai to facilitate the process of VAT Dubai registration through a variety of tools, and accessibilities.

In order to proceed with the process easily with an authorized legal registration.

FAQs:

Is VAT claiming specified for businesses only?

Absolutely not! Even individuals, foreigners, and tourists have to pay for VAT, and claim the VAT refund on their purchases.

Is Dubai an income tax-free emirate in the UAE?

Yes, All the private income in the UAE is 100% tax-free, and can be provided officially if that particular person is holding a UAE Residence.

Dubai VAT Registration is easier with Alsun Tax & Accounting Experts!

Alsun Taxation and Bookkeeping Agency offers all kinds of tax affairs and taxable obligations that are registered and authorized legally by the Federal Tax Authority (FTA). Alsun Taxation provides VAT registration for businesses with all types whether new and existing businesses, or VAT tax group, or even VAT for international companies

As well, Taxation agency facilitates all your tax affairs for Value Added Tax (VAT), whether Registration, Return Filling, Reclaiming, Accounting, and Deregistration.

Alsun Tax services are all set for your business success!  

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