With the introduction of VAT registration in UAE, businesses are required to comply with the regulations set forth by the Federal Tax Authority (FTA). VAT registration in UAE is a mandatory step for businesses exceeding the specified turnover threshold. Failure to register for VAT can result in penalties and legal implications.
At ICB Tax Consultancy, we recognize the significance of timely and accurate VAT registration in UAE. Our team of experienced professionals is committed to guiding you through the process seamlessly, ensuring compliance with FTA requirements.
VAT registration in UAE
If you are a business owner in the UAE, you must register your business under the VAT Law, which came into force on January 1, 2018. Companies and individuals operating in the UAE are required to VAT register in UAE if their annual turnover exceeds AED 375,000.
Documents needed for VAT registration in Dubai.
A copy of the trade license issued by the Department of Economic Development (DED) or another regulatory entity in the UAE.
A copy of the authorized signatory’s Emirates ID, as well as the business manager or owner.
A copy of the authorized signatory’s passport, as well as the business manager’s or owners.
The bank account information for the firm, including the account number and IBAN.
The company’s financial statements for the preceding year, comprising the profit and loss statement, balance sheet, and cash flow statement.
Details of the business premises, including the lease agreement or title deed, and the location of the premises.
If the business imports or exports items, customs registration information is also required.
Forms of VAT Registration in UAE
Two methods of VAT registration in UAE
Mandatory VAT Registration in UAE
Companies with taxable supplies and imports above AED 375,000 annually are required to register. Whether they are residents of the UAE or not, businesses must adhere to this standard. If an organization does not register for VAT, it may be subject to taxes and penalties.
Voluntary VAT Registration in UAE
Voluntary registration is an alternative for firms with taxable supplies and imports that fall below the statutory registration threshold but want to register for VAT. Voluntary registration may be useful for enterprises that deal with zero-rated supplies or want to recoup VAT on expenses.
Before submitting for VAT registration, firms must ensure that all essential documents are accurate and up to date. Failure to provide accurate information or documentation may result in registration delays, fines, and penalties.
The United Arab Emirates (UAE) introduced VAT in January 2018, making it essential for all enterprises operating in the country to register for VAT. This was a momentous step for the UAE since it represented the transition from its conventional tax-free economy to a tax-based structure. VAT registration services in Dubai help firms comply with VAT laws and regulations.
Do you know what happens if you do not register for VAT in the UAE? If your company fails to register on time, you may face an AED 10,000 punishment. If you don’t pay taxes on time, there are further penalties:
Choose ICB Tax Consultancy for VAT registration in UAE – where expertise meets personalized service. Let us be your trusted partner in navigating the complexities of VAT registration, allowing you to focus on what you do best – growing your business. Contact us today to embark on a smooth and compliant VAT registration in UAE journey. Your success is our commitment.
