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VAT Registration Services in Dubai and the UAE

Simplify your UAE company’s VAT registration, deregistration, VAT filing, and FTA compliance

VAT Registration Services in Dubai and the UAE

Starting and running a business in Dubai comes with a lot of opportunities, along with some tax obligations. While doing business in Dubai is extremely rewarding, at the same time, in order to stay compliant with UAE tax laws, you must be careful about timely and accurate tax registration.

VAT registration can be done through the FTA e-channel. However, the process can be complex. That is where reliable and expert VAT registration services in Dubai can help ease the stress.

Dubiz Business Setup is your ultimate VAT management guide, here to assist you through the entire tax registration process. Our team of experts offer quality tax and accounting services in Dubai and UAE, taking care of your VAT registration with professionalism and guaranteed accuracy.

What is Value Added Tax (VAT) in UAE?

What is Value Added Tax (VAT) in UAE?

Value Added Tax, shortly known as VAT, is a type of indirect tax imposed on most of the supplies of goods and services that are bought and sold. Basically, the tax is levied at each stage of the supply chain, such as manufacturer, wholesaler, and retailer level. Ultimately, the end consumer bears the tax, and businesses play the role of collecting tax on behalf of government.

In the UAE, VAT was introduced on 1st January 2018 at a standard rate of 5%. It provides the nation with a new source of income, which in turn helps the government invest in various quality public services.

VAT Registration in UAE for Businesses

VAT registration is important for companies in the UAE that meet income threshold and deal with taxable goods and services. Registering for VAT on time with the Federal Tax Authority (FTA) promotes an environment of transparency and credibility in financial dealings.

Whether operating on Dubai mainland or freezone, as a business owner in Dubai, you must register your business under the VAT law. After registration, you receive a TRN (Tax Registration Number), a 15-digit number, which is:

  • Proof of business's legal operating status

  • Essential for filling VAT returns

  • Required to claim any VAT refunds

Types of VAT registration Services in Dubai

There are two types of VAT registration services in UAE. The category under which you fall basically depends upon your past and expected annual turnover.

  • Mandatory VAT Registration:

    Businesses whose annual taxable income exceeds AED 375,000 are legally required to register for VAT under mandatory registration.

    It is obligatory and non-compliance leads to fines and penalties.

  • Voluntary VAT Registration:

    Businesses whose annual turnover is more than AED 187,500 but less than AED 375,000 can choose to register for VAT voluntarily.

    It is optional and non-registration does not lead to any fine.

Compliance with the FTA

Compliance with the FTA

Authority overseeing VAT in UAE

The Federal Tax Authority (FTA) is the authority responsible for managing and collecting federal taxes and related fines along with applying all tax-related policies in the Emirates.

FTA issues guidelines and provides assistance to businesses and consumers to help them meet their tax liabilities and fully understand the taxation system in the UAE.

Our experts at Dubiz Business Setup ensure your business always remains aligned with latest FTA updates.

Accurate and Timely VAT Filing

Guaranteed by Dubiz

All VAT-registered businesses need to file VAT returns on a regular basis. They must report the amount of VAT they have charged as well as the amount of VAT they have paid to the government on a regular basis.
In case the business has charged more VAT than it has paid, the difference amount needs to be paid to the government.
In case the business has charged less and paid more VAT, the difference amount can be claimed for a refund.

The inaccurate filing of VAT can lead to penalties, audits, and legal issues. Professional VAT registration services in Dubai can help you with it.

Streamlined Process of VAT Registration in Dubai

Here are the simple steps for getting your business VAT registered in Dubai:

Create an account on the FTA

Login or sign up on the FTA's official website.

Fill out the VAT application

You must provide all the necessary information related to your business and tax details in the application.

Submit the necessary documents

Attach all the necessary documents such as your trade license, financial records, and bank account details, and submit the application.

Approval and TRN issuance

Once the application is approved, your registration will be complete, and you will receive your TRN number.

Documents Required for VAT Registration

The FTA provides a list of documents that must be provided for successful VAT registration in Dubai, which include:
  • Valid trade license
  • Articles of Association
  • Certificate of incorporation
  • Ownership information of the business
  • Detailed information of business activities
  • Customs details, if applicable
  • Passport/Emirates ID copy of the authorized signatory(s)
  • Power of attorney for authorized signatory(s)
  • Contact information
  • Revenue forecast with evidence
  • Monthly turnover declaration
  • Supporting financial documents
  • Bank details of the applicant

Please note that documentation is subject to variation. Dubiz experts ensure that your documentation is accurate and meets all the requirements set by the FTA.

Why is VAT Registration Services in Dubai Important?

VAT registration in Dubai is not only a legal obligation for those who qualify, but it also serves several important purposes:
  • Obtain your Tax Registration Number (TRN)
  • Become VAT compliant as per UAE tax law
  • Start legally collecting VAT on your goods and services
  • Reclaim input VAT on eligible business expenses
  • Avoid penalties and legal issues associated with late registration
  • Enhance the professionalism and credibility of your business

VAT – Exempted Sectors in UAE

The below given categories of supplies are exempted from VAT in UAE:

  • Certain financial services defined under VAT law

    Certain financial services defined under VAT law

  • Residential properties

    Residential properties

  • Bare land transactions

    Bare land transactions

  • Local passenger transport

    Local passenger transport

Efficient UAE VAT Registration Services in Dubai by Dubiz

VAT registration in the UAE requires a careful approach. Even if you are going for voluntary registration, the legal procedures must be followed. You have to be meticulous with documentation and ensure timely VAT return filing.

Dubiz offers comprehensive VAT registration services in Dubai, which include:

  • VAT Consultancy & Advisory

  • VAT Registration

  • VAT Reporting, Return Filing & Compliance

When it comes to a sensitive issue like tax, staying up to date with the latest FTA guidelines is especially important. Our experts ensure that VAT registration for your business setup in Dubai is handled in full compliance with the latest UAE tax laws.

Our team ensures your application is accurate, complete, and in accordance with current regulations. If you have any concerns related to VAT, queries about VAT registration services Dubai, or anything else, you can book a consultation with our experts. They will be happy to help!

Note: The information provided here is to the best of our knowledge but is subject to changes made in policy and regulations by the UAE government.

Frequently Asked Questions

In case the businesses eligible for mandatory VAT registration fail to register for VAT in permitted time frame, they will have to pay fine of AED 10,000.

Businesses whose taxable supplies or imports exceed AED 375,000 over the previous 12 months must register for VAT within 20 business days of exceeding threshold.

No, only a single TRN number is generated and issued to a person conducting business in UAE.

Yes, certain categories of supplies such as residential properties, bare land, local passenger transport and some financial services as clarified in VAT legislation of UAE, are exempted from VAT.

The guidelines to calculate tax thresholds are given in the Federal Decree Law No. 18 of 2022. Here are the factors to be considered for ascertaining whether your business qualifies for VAT registration:

  • Taxable value of goods and services
  • Value of concerned goods and services
  • Value of taxable supplies acquired through business purchases
  • Value of supplies made by related parties

It takes 20 business days from the date of the completed application was received by the FTA.