If you are a business owner in UAE you most probably will be registered for VAT in UAE. Being registered under the law of VAT(value added tax) law which means that a business or company is acknowledged by the government of that particular country. As a supplier of services and goods authorized to collect VAT from the customers who are buying your services or products and remit the same to the government. Only VAT registered businesses will be allowed to do the following activities:
- Can charge VAT on taxable supply of goods and services
- Claim the input tax credit(ITC) on VAT paid on their purchases that will be deducted from VAT liability on the sales
- Payments of VAT to the government of UAE
- Periodic filing of VAT return
Who should register their businesses under VAT?
All the businesses must be registered under the VAT law? No, only businesses crossing the defined annual turnover threshold are eligible to register under VAT filing Dubai. Based on the registration rules a business will either be mandated to register or as an option a business can apply for registration or can seek exemption from the VAT registration. The VAT consultant will help you to do VAT registration in Dubai or UAE.
VAT registration in UAE can be classified into the following categories
Voluntary VAT registration
Exemption from VAT registration
Mandatory VAT registration
VAT registration deadlines in UAE
The VAT was introduced and implemented from 1st of January 2018 the Federal tax authority(FTA) is inviting applications for VAT registration in the UAE. The FTA has opened its portal to allow businesses to register for VAT online. The return filing date in UAE can be seen on the on the online portal of FTA or you can contact The VAT consultant. The UAE VAT registration in the FTA portal is carried out in a phased manner depending upon the turnover of the particular business.
VAT Turnover Calculation for VAT Registration in UAE
In the United Arab Emirates, businesses who have turnover more than AED 375,000 are eligible for Vat registration and it is mandatory for those businesses who fulfil this basic criteria. The Voluntary VAT registration is allowed to those businesses whose annual turnover is minimum AED 187,500 they can apply for Voluntary VAT registration in Dubai.
How to Apply for VAT Registration in UAE
The registration process for VAT registration in the UAE is not so complex. You need important documents related to your business or company and all bills which clearly reveals the annual turnover of your goods or services of your business. Hiding the revenue is offensive so we shouldn’t hide our income information to save tax. Following are some basic information or details you need to apply for VAT registration in Dubai or UAE.
- Creation of e-Service Account
- Login to your e-Service Account
- VAT Registration Form: The online VAT registration form contains 8 sections as shown below, in under which the details need to be furnished for completing VAT registration
- About the applicant
- Details of the applicant
- Contact details
- Banking details
- Business relationships
- About the VAT registration
- Declaration
- Review & submit
Or you can simply contact the VAT consultant and they will do all the work for you.
The VAT return records things for the accounting period like:
Total sales and purchases by your business or company
The amount of VAT you owe
The amount of VAT you can reclaim
What are VAT refund from HMRC is
You must submit a VAT return filing even if you have no VAT to pay or reclaim.