VAT Registration In UAE: Everything You Need To Know About

Almost all businesses in the UAE now have to pay Value Added Tax (VAT). The Federal Tax Authority (FTA) has thus promised free registration of company VAT as per the guidelines it has issued. Companies can submit applications by visiting their website at any time.

As a business owner, you should be aware of the importance of getting your company registered with the local authorities. Obtaining a VAT registration in UAE is one such obligation that you cannot avoid. Hence, the question arises as to what must be done by each company in order to comply with the rules and other supporting details required to be successful in registration. Don’t worry; this article will provide you with everything you need to know.

Business VAT Registration in Dubai

For any business that provides taxable goods and services, VAT registration is obligatory. An established firm in the mainland or free zone can also register for VAT in Dubai. It is only a matter of checking the eligibility criteria and then completing the registration process. 

Businesses must have a TRN number in order to comply with UAE VAT legislation. If a business owner or seller is eligible for VAT registration, they will be given a Tax Registration Number, which is a 15-digit number. It is issued by the Federal Tax Authority and is valid for trade throughout the UAE. Apart from serving as proof of VAT compliance, the TRN number has a variety of uses for enterprises.

  • Any UAE company needs to have a TRN to prove its operational status.
  • VAT reimbursements and tax returns can be filed online.
  • Input VAT-related expenses can be claimed by companies from the UAE government by submitting their TRN number.

Dubai VAT Registration Services: How to Apply?

As a government requirement, businesses must apply for VAT. In contrast, the government announces deadlines based on business turnover or kind of VAT from time to time. You should also be familiar with the application procedure. This will assist you in comprehending the details needed to complete your application and preparing the necessary documents ahead of time. To avoid any delays or snags, make sure you follow the steps below to the letter:

  1. Make an account on FTA’s eService Portal.
  2. You’ll find an online VAT registration form once you log into your account.

The information needed in the form will be;

  • Details about your company.
  • Information about yourself.
  • Your company’s contact information.
  • Details of your bank account.
  • Any business links must be declared.
  • Information about how to register for VAT
  • In the United Arab Emirates, a declaration for VAT registration services is required.
  • After you’ve completed all of the fields, click Review and Submit.

The required documents are:

  • Copy of the business owner’s passport
  • A copy of your company’s trading license.
  • Identification information based in the UAE.
  • Account information and IBAN for the company
  • Keep track of your company’s revenue throughout the last year.
  • Association Memorandum.
  • Code of Registration for Customs Authorities

Who should register for VAT?

Is it mandatory for all firms to register for VAT? No, only enterprises with a total yearly turnover of more than a certain amount are required to register for VAT. A business will either be required to register or will have the option to apply for registration or seek exemption from VAT registration, depending on the registration threshold.

On this basis, VAT registration in the United Arab Emirates can be divided into the following categories:

  • Registration for VAT is required
  • VAT Registration on a voluntary basis
  • VAT Registration is not required

Dubai VAT Registration Types

In Dubai, there are various forms of VAT registration services. Different types of VAT registration services are available depending on your company’s revenue and taxable income.

Registration of Voluntary VAT in Dubai

Businesses with sales revenues of AED 187,500-375,000 in the previous 12 months are eligible for voluntary VAT services. If your company’s turnover falls into this category, you can register for VAT and receive a TRN number on a voluntary basis. You will not be penalized by the UAE government if you refuse to acquire it. Voluntary VAT registration services in Dubai are also available if you expect your business to generate more than AED 187,500 in the next 30 days after submitting your application.

Registration of Mandatory VAT in Dubai 

VAT registration is required for enterprises with annual revenue of more than AED 375,000. This implies you’ll need to obtain a Tax Registration Number in order for your firm to run smoothly in Dubai and the other emirates. You will be able to collect VAT from your customers for the goods and services you sell once you acquire your TRN number.

What is the Dubai VAT Registration Deadline?

Since the UAE government established VAT registration services in Dubai, firms from all industries, domains, and budgets have been welcomed to apply. Businesses can register for VAT and acquire their TRN number through an online portal supplied by the Federal Tax Authority. However, before continuing with the application procedure, you must have all of the necessary qualifications. You can apply for VAT registration at any time during the year, pending FTA’s acceptance of category-by-category applications.

The e-Service Account

You must first register an e-Service account with FTA before proceeding with online VAT registration. Setting up an online account in FTA is quite similar to setting up other online accounts such as Gmail, Yahoo, and other similar services. To make an account, go to ‘https://eservices.tax.gov.ae’ and select the ‘Sign up’ option in the upper right corner of the screen. The processes for creating an e-Service account are listed below.

  • Click Sign up and fill out the sign-up form with information such as your e-mail address, password, security code, and security question.
  • You will receive an email requesting you to verify your email address at your registered email address.
  • Use your login credentials to access your account.

Tax Registration Number (TRN)

Every firm must describe a tax registration number (TRN) in order to claim credits for taxes paid under the UAE VAT. A firm can convey the TRN to its suppliers, vendors, and consumers so that when they raise an invoice, it is tagged with the TRN, allowing them to claim credits.

TRNs were issued to businesses that registered before December 4, 2017. To aid with tax compliance ahead of the adoption of VAT on January 1, 2018, the FTA began issuing provisional TRNs to enterprises that registered after the December 4th deadline – ensuring that business is not disrupted.

You will not be able to view your VAT registration certificate until you have received provisional authorization for VAT registration. It will be available at a later date once the FTA has finished its assessment and verification of your registration information. When your VAT registration certificate becomes available, you will be notified.

TRNs are required for VAT implementation in the UAE; therefore, issuing interim TRNs would go a long way toward assuring company continuity.

Registration of VAT Groups

Unless otherwise specified in the UAE Executive Regulation, any person conducting business in the UAE is not permitted to hold more than one Tax Registration Number (TRN). As a result, even if you have branches in multiple Emirates, you only need one VAT registration. With a similar goal in mind, if two or more people in a firm are related or associated, they can apply for VAT group registration.

Bottom Line

The UAE and a few other Middle Eastern countries have recently implemented a Value Added Tax. As a result, it is unfamiliar territory for many businesspeople, making it tough to comprehend the approach. Companies should pay more attention to the process and gain a better understanding of it.

Hopefully, you now have a good understanding of how to register your firm for VAT compliance. For error-free account creation and registration, all you have to do is follow the instructions carefully and fill in the details correctly. If you have any questions, you may contact the DBS in Dubai for a more in-depth explanation of the standards that apply to enterprises.

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Call us on +97145667485 or WhatsApp on +971551129344.

You may also chat with a live agent on our website https://www.dubaibusinessservices.com/, request a call back on https://www.dubaibusinessservices.com/contact-us/ or visit our office Clover Bay Tower Office 1111, Business Bay Dubai UAE

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