VAT Registration in UAE

VAT Registration Agent in Dubai, Abu Dhabi & UAE

VAT or Value Added Tax is an indirect tax that is applied on the goods and services. VAT is an indirect tax as it is payable by the end consumer that purchases the goods and services on which VAT is applicable. VAT was introduced in the UAE on 1st January 2018 at a standard rate of 5%. Introduction of VAT in the UAE came as a new change in the working system of the UAE.

All the businesses operating in the UAE collect the VAT from the end consumers on behalf of the Government and are required to submit it to the VAT authorities as per the regulations set up by the Federal Tax Authority. In order to be able to collect the VAT on behalf of the Government, all businesses are required to complete the VAT Registration.

VAT Registration in the UAE can be of two types – Mandatory registration and the Voluntary Registration. A business with a total value of its taxable supply and imports of AED 187,500 can opt for voluntary VAT registration and Reyson can help your business to get VAT registration. Along with the voluntary VAT registration, businesses also require to get themselves a mandatory VAT registration. The criteria for mandatory VAT registration for businesses are as below:

• Natural persons and companies involved in trade of VAT taxable supplies in Dubai
• Companies selling or importing goods and services exceeding AED 375,000 per year
• Foreign companies selling VAT-taxable goods and services in Dubai are required to register for VAT

VAT Registration is a basic requirement of the businesses and the professionals of Reyson are well versed with all the requirements and regulations that need to be complied with for all the businesses to get themselves successfully registered for VAT with the Federal Tax Authority.

VAT Registration in UAE is an online process and businesses could visit the portal of Federal Tax Authority for VAT Registration. The following documents are required to be submitted for the VAT Registration:

• Documents – Passport copy & Emirates ID
• Trade license, certificate of incorporation, articles of association along with the details of business activities
• Documents showing proof of sales for 12 months
• Turnover in AED for past 12 months along with turnover expected in next 30 days
• Estimated value of imports & exports for one year in GCC countries
• Bank account details

When the documents are submitted, the FTA either approves or disapproves the registration. When the application is approved, a TRN (Tax Registration Number) is issued which is unique and should be used by the businesses. Along with the TRN after the VAT registration, VAT Certificate is also issued and can be downloaded at FTA. In case the registration is disapproved, the FTA requests the re-submission of documents that fell short at the time of approval.

Reyson helps the businesses in VAT registration. As the professionals are well aware of the documents and regulations of the FTA, Reyson will help the businesses for VAT Registration.