VAT Registration in UAE

VAT Registration in UAE

Value added Tax
Value Added Tax (VAT) registration is mandatory for businesses in the UAE that meet certain criteria. VAT is a consumption tax that is levied on the supply of goods and services in the UAE. It was introduced in the UAE in 2018 as part of the government's efforts to diversify revenue sources and reduce reliance on oil revenue.

Here are the steps involved in VAT registration in the UAE:

  • Determine Eligibility:
    The first step is to determine whether your business is eligible for VAT registration. Businesses whose annual turnover exceeds AED 375,000 are required to register for VAT. Businesses with a turnover between AED 187,500 and AED 375,000 can register voluntarily.

  • Collect Required Documents:
    The next step is to collect all the necessary documents for VAT registration. This includes a valid trade license, passport copies of the business owner and authorized signatory, proof of residency, and bank statements.

  • Register with the FTA:
    Once you have collected all the necessary documents, you can proceed to register for VAT with the Federal Tax Authority (FTA). You can register online through the FTA's website or through a tax agent. You will need to provide details such as your business name, trade license number, and contact information.

  • Obtain VAT Certificate:
    After registering for VAT, you will receive a VAT registration certificate from the FTA. This certificate is proof of your VAT registration and should be displayed at your business premises.

  • Comply with VAT Regulations:
    Once you have obtained your VAT registration certificate, you must comply with VAT regulations. This includes charging VAT on taxable supplies, issuing tax invoices, and submitting VAT returns to the FTA.
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