What Are the Steps for VAT Registration in Dubai?


VAT went into force in the UAE on January 1, 2018. A type of indirect tax known as VAT (Value Added Tax) is also referred to as a consumption tax. According to the UAE VAT law’s Executive Regulations, companies with a yearly revenue of AED 375,000 or more are required to register for VAT in the UAE and take the necessary steps to integrate VAT-compliant solutions into their operations.

Who should register for VAT?

In Dubai, the acquisition and sale of chargeable goods and services are subject to VAT. Currently, the nation’s standard VAT rate is 5%. A VAT-registered business is able to recoup VAT paid on business costs for goods and services since it collects VAT in the name of the UAE Federal Tax Authority (FTA).

When can one deregister for VAT services?

The UAE VAT law mandates VAT deregistration when taxable businesses shut down or stop making taxable supplies. In the UAE, VAT deregistration means removing a company’s tax registration number (TRN) and disabling its VAT registration. If the FTA is persuaded by the presented evidence, the VAT registration in Dubai may be revoked as soon as a company ceases to operate.

How might VAT services aid your business’ expansion in the UAE?

VAT does not impose additional costs or burdens on the company. In general, every company serves as a go-between for the government. The only thing the cash flow reflects is the effect. Therefore, good management of tax collection and execution will create value and increase cash inflows for any organization. Helpful VAT services

To avoid making tax return mistakes.

To submit a claim for input tax that was paid in accordance with the VAT law.

Give instructions on how to avoid fines and penalties.

Keep your accounting records up-to-date for a minimum of five years.

To protect the business from significant misrepresentation, conduct a tax audit.

Become knowledgeable about and schooled in the most recent changes in the accounting effects of the VAT law.

Give instructions on how to create sales invoices.

What are the steps for VAT registration?

Businesses that import and make taxable supplies worth more than AED 375,000 per year must register for VAT. If a company’s taxable imports and supplies total more than AED 187,500 annually, it can voluntarily register for VAT. A company can basically choose between the two UAE VAT registration processes:

Required Registration: AED 375,000 is the required amount for a business to register. The exception to this threshold is foreign organizations.

Non-Mandatory Registration: AED 187,500 is the minimum amount needed for a company to voluntarily register.

Conclusion: All registrants in the UAE are required to maintain the accounts and records specified in the law governing VAT. The law also specifies how long supply-related bookkeeping records need to be maintained. When it comes to the fines assessed to the company for breaking Dubai’s rules and regulations, ignorance regarding VAT registration can be costly. Keeping this in mind, one should ensure that VAT registration is completed by knowledgeable agents who offer these services.