Understanding VAT Registration in UAE
Value Added Tax (VAT) is a consumption tax applied to goods and services at each stage of the supply chain. In the UAE, VAT was introduced on January 1, 2018, at a rate of 5%. Businesses with an annual turnover of AED 375,000 or more are required to register for VAT.
FTA VAT Registration in UAE:
FTA VAT Registration Process
Create an Account at the FTA Website: Begin the process by creating an account on the FTA website, providing essential details.
Submit Required Documents: Depending on the business's country of establishment and nature, specific documents need to be submitted.
Wait for Approval: After document submission, await approval from the FTA to receive confirmation of FTA VAT registration in Dubai.
VAT Registration Criteria
Total Sales: Businesses with taxable imports and supplies exceeding AED 187,500 in the last 12 months or expected to exceed it in the next 30 days are eligible for VAT registration.
Exempt Supplies: Businesses making only exempt supplies may apply for an exemption from VAT registration.
Who Needs to Sign Up for VAT Registration in UAE
Mandatory VAT Registration UAE: Businesses with a place of business in a UAE state, supplying goods over AED 375,000 in the past 12 months or anticipating exceeding this threshold in the next 30 days, must register for VAT.
Voluntary VAT Registration UAE: Companies exempt from mandatory registration can voluntarily apply if annual supplies or taxable expenses meet or exceed 50% of the mandatory threshold.
VAT Exemption Registration: Businesses not crossing the voluntary registration threshold or solely engaging in zero-rated supply can request VAT exemption.
VAT Group Registration
VAT Group Registration allows two or more persons engaged in business to apply as a tax group, simplifying VAT reporting.
Eligibility requires having a business office in the UAE, being related parties, and one person controlling others.
Benefits of VAT Group Registration
Entities in a VAT group are treated as a single taxable person, simplifying VAT accounting.
VAT is not applied to supplies within the VAT group, streamlining compliance and reporting.
Choose us for VAT Services
Whether you require FTA VAT registration, need assistance with the registration process, or are exploring VAT group registration, we provide comprehensive services to ensure compliance and efficiency in your tax obligations.
