VAT Registration Service in UAE

VAT is an indirect tax, a kind of withdrawal to the state budget of a part of the value added, which is created at all stages of the production process of goods, works and services and is paid to the budget as it is sold. The general VAT rate in the UAE is 5%.

Benefits of UAE VAT registration imply that every UAE business registered for VAT can:

• accrue the amount of VAT on all dutiable goods and services it offers;
• refund any VAT paid for the goods and services purchased from other companies;
• monitor all VAT-deductible transactions and inform the government about them regularly.

Easy VAT Registration in UAE

To register for VAT in UAE it is possible to submit online an application to be registered with the UAE Federal Tax Authority (FTA) and be assigned a VAT Tax Reference Number (TRN) providing the information about the company. To get VAT registered in UAE businesses can choose our company as their VAT consultant in UAE to help make it easy. When the FTA receives the application, it generally requires 20 business days for its approval and finalization of VAT registration process in UAE.

Which Businesses Must Register for VAT in the UAE?

VAT registration for startups in UAE as well as VAT registration services for SMEs in UAE are required for businesses that have made taxable supplies exceeding AED 375,000 (USD 102,113).

Some supplies of businesses may qualify for either a zero rate of VAT or an exemption from VAT under the UAE national legislation. Goods and services covered by 0% VAT include certain modes of transport (trains, trams, ships, planes), some medical, educational services and all exports of goods and services.

VAT registration requirements in UAE imply that the company in the UAE must submit an application for VAT registration:

1. if the taxable turnover in the next 30 days is above the registration limit;
2. by the end of the 30 days, the taxable turnover for the preceding year actually exceeded the registration limit;
3. if the business in the UAE receives services that are included in the return using the reverse-charge VAT, and the amount exceeds the registration limit.

Duties of a VAT-registered Business in the UAE

Once the organization is registered for VAT and has obtained a TRN, there are two key requirements for VAT registration in UAE that a company has to meet before the UAE government:

• To lodge a quarterly VAT declaration to the FTA. This can be done online through the authority’s website. The company must declare every month if the annual turnover outdoes AED 150,000,000 (USD 40,846,336) to stay in VAT compliance in UAE. This declaration must contain the volume of standardized shipments of the business in each of the seven Emirates, the cost of deposits received, and supplies made to the company’s employees, the value of non-taxable and nil-rate business supplies, and other data required to determine the VAT payable.
• The business is obliged to pay the VAT at the end of each billing cycle, which is possible to do via the e-Dirham payment portal using bank cards and transfers. The due date is 28 days (or the next working day if the 28th day coincides with a weekend or bank holidays).

It is important that your business meets all the applicable UAE tax law requirements. If the client is going to create a new UAE company or has one, it is crucial to obtain an individual consultation regarding taxes in the UAE.

Taxpayers are obliged to keep the relevant tax, accounting and other records to prove the data entered in the VAT return for at least five years from the end of the relevant billing period and 15 years for real estate related activities.

Other Related Services

We offer easy VAT registration in UAE and VAT return services. If the business is no longer subject to VAT, we also can assist you with deregistration of the client’s company as a VAT payer.