The introduction of Value Added Tax (VAT) in the United Arab Emirates (UAE) in 2018 added a new layer of consideration for businesses operating in the region, particularly in Dubai, the vibrant commercial hub. This guide aims to provide a clear and concise overview of VAT registration in Dubai, guiding businesses through the process and answering key questions.
Registering in the VAT system signifies that a business has obtained formal recognition from the government as a provider of Goods and Services. This acknowledgment bestows upon the business the privilege to levy Value Added Tax (VAT) on its customers and subsequently remit these collected taxes to the government.
VAT registration essentially signifies that a business is officially recognized by the Federal Tax Authority (FTA) for VAT purposes. Businesses meeting specific criteria are mandated to register, while others can choose to do so voluntarily.
There are two main scenarios for VAT registration in Dubai:
Beyond these benefits, all registered businesses must adhere to rigid compliance measures. This entails maintaining accurate and current records, including tax invoices, credit notes, debit notes, and comprehensive documentation of both inbound and outbound supplies.
For businesses exceeding the mandatory threshold, VAT registration needs to be completed within 30 days of exceeding the threshold. There are no specific deadlines for voluntary registration; however, it's recommended to register before the start of a new tax period to claim input tax credits effectively.
Determining your VAT turnover for registration purposes involves considering the value of all your taxable supplies and imports within the relevant timeframe (typically the last 12 months). It's crucial to understand which supplies are considered taxable under UAE VAT regulations.
It is necessary for businesses to complete the required documentation in order to register for VAT in the UAE. VAT registration and fee submission will be conducted online. You will need the following documentation in order to register for VAT in the UAE.
All the required documents for VAT registration should be submitted to the Federal Tax Authority (FTA) through an online application process. Once the online VAT registration application is submitted, it typically takes approximately 2-3 working weeks for the FTA to review the application and issue the Tax Registration Number (TRN).
The good news is that VAT registration in Dubai is an online process handled through the FTA's e-Services portal. The process typically involves:
Once approved, the FTA will issue a Tax Registration Number (TRN) which signifies your official VAT registration.
For businesses operating under the same control in the UAE, VAT group registration can offer administrative simplifications. A VAT group is treated as a single taxable person for VAT purposes.
Navigating VAT registration in Dubai can be a complex process, especially for businesses unfamiliar with UAE tax regulations. Here's where Reyson Badger can be your trusted partner:
By partnering with Reyson Badger for your VAT registration needs in Dubai, you can gain peace of mind, focus on your core business activities, and ensure VAT compliance from the outset.
Businesses that are residents of the UAE and generate taxable supplies within the country are required to register for VAT, provided that the total value of their imports and taxable supplies in the previous year surpassed AED 375,000, or is anticipated to exceed it in the upcoming 30 days. Regardless of the value of their taxable supplies and imports, non-resident enterprises that make taxable supplies in the UAE are required to register for VAT if no one else is responsible for paying the applicable tax on these supplies in the UAE.
Businesses that are residents of the UAE and that make taxable supplies within the country are eligible to voluntarily register for VAT if the value of their imports, taxable expenses, and taxable supplies exceeded the AED 187,500 voluntary registration threshold in the previous year or is anticipated to do so in the upcoming 30 days.
The registrant's e-Services account dashboard will have a soft copy of the VAT registration certificate. Nonetheless, the registrant can click here to access the service if necessary.