With This Easy Method, You Can Register for VAT In the UAE Quickly

With This Easy Method, You Can Register for VAT In the UAE Quickly

VAT stands for value-added tax. It is a tax levied based on their consumption rather than their income. It is imposed on the price of a product or service at each production stage, distribution, or sale to the end consumer.

Value-added tax, or VAT in the UAE, commenced on the 1st of January, 2018. The regulation was started as a means to provide the UAE with a new source of income which will be continued to be utilised to provide high-quality public services.

Benefits of VAT Registration in UAE:

  1. Since VAT is levied on the consumption of goods and services, it ensures that the government is at the receiving end of a stable revenue generation mechanism.
  2. VAT in the UAE aims to simplify the tax collection system by making the taxes levied less complicated and repetitive.
  3. It promotes savings among consumers.
  4. VAT registration in the UAE proposed complete digitalization and computerization of the tax collection system.
  5. VAT is collected in small instalments, so the consumers have minimal burden.

Who can register for VAT in UAE?

  1. Mandatory VAT registration in UAE for businesses whose annual turnover is more than AED 375,000.
  2. Voluntary VAT registration in UAE for businesses whose annual turnover is between AED 187,500 & AED 375,000.
  3. Startups whose VAT attracted expenses are more than AED 187,500.

Step-by-step Guide For VAT Registration in UAE

1 Step: create an account on the digital portal of the Federal Tax Authority, UAE.

2 Step: upon registering for an account, commence the procedure as guided by the website. For this, you may need to prepare a few new documents in advance.

  1. Copy of Trade License
  2. Passport copy (Owner/partners)
  3. Emirates ID (Owner/partners)
  4. Memorandum of Association (MOA)
  5. Company’s Bank Account details and IBAN
  6. Details Business Turnover for the last 12 months (Balance Sheet, Audited Reports or Bank Statements)
  7. Customs Authority Registration code
  8. Company’s registered address and P.O. Box.
  9. Projected revenues and expenses for the next 30.
  10. Details of Business Activities. (Import/Export or Trading).
  11. Names of GCC countries if doing business in them.
  12. Name of Tax Group (if they want one tax group number for all the entities).

3 Step: once you submit all relevant details and documents successfully, you will receive a Tax Registration Number (TRN) upon approval by the FTA.

Voila! You’re done!

However, if this procedure seems complicated and tedious, we have the perfect solution for you.

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