VAT (Value Added Tax) Registration & Consultation - A Consumption Tax implemented in UAE upon the businesses whose turnover exceeds AED 375,000 and have to mandatorily apply for VAT registration. VAT was introduced in the United Arab Emirates on 1 January 2018. The general VAT rate is 5% and applies to most goods and services, with some goods and services subject to a 0% rate or an exemption from VAT (subject to specific conditions being met).
To facilitate the process for the businesses to register, the Federal Tax Authority (FTA) has opened its portal for online VAT registration. The deadlines based on the turnover of businesses are already announced by FTA and the registration will be carried out in a phased manner. At Bizvise our team of VAT consultants in Dubai can offer VAT consultation with expertise and experience who can understand your business and provide the appropriate advice.
Registration under UAE VAT law means that a business is acknowledged by the government, as a supplier of Goods and Services and is authorized to collect VAT from customers and remit the same to the government.
Only VAT registered businesses will be allowed to do the following:
- Charge VAT on taxable supply of goods and services
- Claim Input Tax Credit on VAT paid on their purchases, which will be deducted from VAT liability on sales
- Payment of VAT to the government
- Periodic filing of VAT return
Apart from the above, all registered businesses have to align their business reporting structure in line with the compliance requirements such as accurate and updated books of accounts, tax paid documents such as Tax invoice, credit notes, debit notes, records to all inward supplies and outward supplies are required to be maintained.
Are all businesses liable to register under VAT?
No, only those businesses crossing the defined annual aggregate turnover threshold are liable to register under VAT. Based on the registration threshold, a business will either be mandated to register or as an option, a business can apply for registration or can seek exemption from VAT registration
On this basis, VAT registration in UAE can be classified into the following:
- Mandatory VAT Registration
- Voluntary VAT Registration
- Exemption from VAT Registration
VAT Turnover Calculation for Registration in UAE
In UAE VAT, businesses whose annual turnover exceeds the mandatory registration threshold of AED 375,000 and the voluntary registration threshold of AED 187,500 are allowed to apply for VAT registration. Therefore, it is crucial for businesses to understand what type of supplies are considered in deriving the annual supplies turnover and how to calculate the VAT turnover for registration in UAE.
How to applying for VAT Registration?
Applying for VAT Registration is a two-step process.First, you have to create an e-Services account and then complete the VAT registration process.
Our consultants can assist you with UAE VAT registration process.
- Creation of e-Service Account
- VAT Registration Process
- Exemption from VAT Registration
- VAT Registration Form: The online VAT registration form contains 8 sections as shown below, in under which the details need to be furnished for completing VAT registration
- About the applicant
- Details of the applicant
- Contact details
- Banking details
- Business relationships
- About the VAT registration
- Review & submit
What is Business Insurance?
Business insurance is a policy package that is designed to protect business owners from financial loss that may pose a threat to your business.
Types of Business Insurances that we can support
- Workmen’s Compensation/Employer Liability
- Fire & Allied Perils Insurance
- Property Insurance Insurance
- Directors & Officers (D&O) Liability Insurance
- Errors & omissions (E&O ) Liability Insurance