VAT & Accounting Services In UAE
The Best Guide for VAT Registration and Services
Dubai is known worldwide as one of the most important business centers in the Middle East. The excellent reputation as a business and investor-friendly city is the reason why thousands of new companies are founded every month, even during the pandemic. This is because the UAE government has done and continues to do an excellent job in containing the pandemic to ensure the safety of everyone living in and visiting the UAE. The government also introduced several large stimulus packages to support UAE businesses affected by the pandemic.
If you are a new entrepreneur seeking UAE VAT registration services in Dubai, you must learn if your business is eligible or required to apply for UAE VAT. You also need to understand the different types of VAT registration services in the UAE. The Federal Tax Administration is the government agency responsible for the implementation of VAT. It has established certain eligibility criteria that new businesses must meet to apply for VAT registration in UAE-Dubai.
VAT Services in UAE
As global VAT requirements vary in different countries and regulations change frequently, Global Vision Management and Consultancy consultants are not only fully up to date on these changes, we provide VAT consulting services with hands-on support for your business in Dubai.
We understand the business complexities ranging from accounting, taxation, and VAT services. We offer the best VAT advisory services in Dubai including:
- VAT compliance and control
- Filing and payment
- Data recording and management
- Supplier management
- Customer management
VAT For UAE Business
UAE companies trading in taxable goods and services are required to register for VAT. Regardless of whether your company trades in the UAE mainland (onshore) or the UAE free zones, you are required to apply for VAT registration services in the UAE if you meet the eligibility criteria set by the FTA. Registration includes ALL commercial activities of the registered person.
Your business in Dubai must have a Tax Registration Number (TRN) to comply with UAE VAT laws if the business qualifies for the mandatory VAT registration threshold in the UAE. A Tax Registration Number is a unique 15-digit number assigned to a seller or company by the Federal Tax Agency and registered for tax purposes in the UAE. The TRN is issued once you have completed your VAT registration process in the UAE. Importance of TRN :
- acts as a proof of your established and operative business status
- allows you to claim input VAT on your business expenses and apply for VAT refunds
- facilitates VAT returns filing
- allows the business to collect UAE VAT on sales and pay to the UAE government is as per UAE VAT laws and regulations
Eligibility for VAT Registration in Dubai
- VAT is a relatively new tax; However, the government has made important progress in clarifying and assisting those who need to register for this tax in the emirate. VAT registration is optional for new businesses; however, it may become mandatory under certain conditions. Below are the companies that need to apply for VAT registration in Dubai:
- Businesses selling and/or importing goods and services that exceed AED 375,000 per year must register for this tax;
- VAT registration is necessary for overseas enterprises providing VAT-taxable products and services in Dubai.
VAT-registered Dubai businesses will levy and collect the tax from end customers, then pay it to the government. Businesses must submit VAT returns for this reason to be able to recoup the VAT they have paid. Foreign enterprises that have registered for VAT in Dubai can also seek refunds.
If you wish to start a business in Dubai, you may choose to register for VAT right away, and our experts will assist you.
Documents Required for VAT Registration
A tax identification number is one of the most crucial requirements to satisfy when registering for a VAT number in Dubai. This is received in conjunction with the Certificate of Incorporation and is provided by the Dubai Trade Register. A VAT certificate will be provided to a corporation based on its tax identification number.
When filing for VAT in Dubai, numerous paperwork must be prepared. These are some examples:
- the owner’s and other shareholders’ business license passport
- confirmation of the company’s registered address in the UAE and information about the corporate bank account (IBAN included)
- a revenue statement for the previous 12 months (where available)
- details on the company’s import-export activity (where applicable)
Although VAT registration may be conducted online using the Dubai Government’s online portal, the procedure might be tough for company owners due to the vast list of papers to be filed and the necessity of obtaining an online account. Our experts can assist you with this treatment.
Who Pays VAT in Dubai?
- Companies having an annual income of AED 375,000 or more will be subject to a 5% VAT on all non-essential items, and consumers purchasing these commodities will be subject to VAT. VAT will be levied in addition to the excise tax already levied on cigarettes, energy drinks, and soft drinks.
- Tax will be paid by all business renters. This includes stores, workplaces, and so forth.
- Commercial property sales are subject to a standard VAT rate.
- VAT will be levied on imported products into Dubai. In the case of re-exported goods, VAT will be levied only once at the ultimate destination.
Who will be exempt from paying VAT?
- All vital things, such as food, medications, educational materials, and so on, are free from VAT.
- VAT will not be levied on enterprises that offer important services such as education and health care.
- The residential renter contract will not be subject to VAT.
- The sale of freshly developed residences is likewise tax-free.
There are several elements to consider when registering for VAT registration services when launching a new business in Dubai. Connect with us now for an in-depth conversation about how to register your company for VAT in UAE, what the exemptions for UAE VAT registration are, or to understand how GVMC can help you with your VAT registration needs in UAE, VAT compliance, and VAT refund processing. Begin right now! Request a FREE VAT consultation with one of our VAT and tax specialists.
You may reach us at +971 52 861 9868 or send us an email at firstname.lastname@example.org if you have any questions about UAE VAT registration services in Dubai.