If you’re planning on starting a business in the United Arab Emirates, you’ll need to register for value-added tax (VAT). Here is some guidance on how to do so.
Why Vat Registration is necessary UAE
VAT registration is necessary for businesses in the UAE since it is a requirement under the law. Businesses are required to register for VAT if their taxable supplies and imports exceed AED 375,000 in 12 months. This includes businesses that are registered outside of the UAE but have a branch or place of business in the country.
Businesses must apply for VAT registration within 60 days from the date they become liable for registration. Companies that fail to register for VAT will be subject to penalties.
The main benefits of VAT registration are that it allows businesses to recover the VAT they have incurred on their inputs (raw materials, goods, services) and it also provides businesses with an opportunity to register for zero-rating of their exports.
How to register for vat in UAE
The process of registering for Value Added Tax (VAT) in the United Arab Emirates (UAE) is relatively straightforward. Businesses must first obtain a Trade License from the Department of Economic Development (DED) in the Emirate where they will be based. Once the Trade License has been obtained, businesses can then register for VAT by completing an online application form on the Federal Tax Authority (FTA) website.
However, there are a few things that businesses should keep in mind when registering for VAT in the UAE. First, businesses must ensure that they have all the necessary documentation in order, such as their Trade License and Emirates ID. Second, businesses must choose a Tax Registration Number (TRN) which will be used to identify them when dealing with the FTA. Lastly, businesses will need to provide their bank account details so that they can make VAT payments.
Once all the required information has been submitted, businesses will receive a confirmation email from the FTA confirming their registration. They will then be able to start charging VAT on their products and services.
Why Choose us as a vat consultancy
There are many reasons to choose Prime services Dubai as a vat consultancy. We have a team of experienced professionals who are well-versed in the process of uae vat registration. We will guide you through the entire process and ensure that you are compliant with all the requirements. We also offer a free consultation to help you understand the process better. Call us today to book a service at +971 55 971 6033
