Businesses and individuals operating in the UAE.
The UAE has historically benefited from tax exemption, but global market pressures have necessitated the introduction of a tax system. Among various taxes, VAT has been implemented on goods transactions. Similar to sales tax, VAT is an indirect tax imposed on both goods and services throughout the supply chain, increasing the need for VAT registration in Dubai.
VAT registration signifies that the business is officially recognized by the government as a supplier of goods and services, authorized to collect VAT from customers and remit it to the government. This tax also applies to imported goods and services to support local providers. While mandatory for some, other businesses opt to register voluntarily. Certain businesses are exempt from VAT and do not need additional registration to operate.
VAT registration is mandatory for certain businesses and can be easily completed online via the Federal Tax Authority (FTA) website. Required documents for VAT registration in the UAE include:
Your business is required to register for VAT if:
Businesses that are not required to register for VAT in the UAE can choose to register voluntarily if:
Businesses with sales below AED 187,500 cannot register for VAT. To register voluntarily, sales must exceed AED 187,500. Additionally, if all supplies are zero-rated, companies cannot apply for VAT registration.
If you are uncertain about the VAT registration process in the UAE, consider seeking professional assistance. A registered accountant or tax agency can help you submit an accurate application and streamline the process. A reliable agency ensures compliance with FTA standards and can help you avoid common issues faced during registration. With their support, you can navigate the seven-step registration process accurately and efficiently..
Businesses and individuals operating in the UAE.
Mandatory: Annual turnover exceeds AED 375,000 Voluntary: Annual turnover is between AED 187,500 and AED 375,000
Register on the Federal Tax Authority’s online portal : FTA e-Services
Failure to register for VAT on time incurs an administrative penalty of AED 10,000
Decide whether to register as a TAX GROUP or STANDALONE. Ensure you have the necessary soft copies of documents ready for uploading:
For any questions or assistance with VAT registration in the UAE, contact BINJOY today. Our expert team is here to help you navigate the complexities of VAT registration and ensure compliance with all relevant regulations.