Value Added Tax or VAT is a levied on goods and service consumption at each point of sale. VAT is a indirect tax and used in more than 180 countries around the world. End consumer pays the VAT. Businesses collect and account the tax on behalf of the government.

About VAT

Introduced at the beginning of 2018, VAT is charges at 5% of final price. VAT applies to the majority of transactions in goods and services. It is mandatory to display the VAT charges on each transaction for a customer to take the final decision. Businesses will be responsible for documenting their business income, costs and VAT charges. Registered companies and traders charge VAT to their customers at the 5% rate and incur VAT on goods and services they buy.

Registering For VAT

VAT-registered businesses must charge VAT on taxable goods or services they supply and keep business records that are verified and audited by government. VAT registered companies reclaim any VAT they have paid on business-related raw material or services. Registered business shall also report the amount of VAT charged and VAT paid to the government on regular basis in a formal, online submission. Returns can be claimed in case of additional tax payment.

How to Register for VAT

Online

VAT Registration Procedure in Dubai

. VAT registration for Dubai and other UAE provinces is done online on federal government website.

The process is as follows:
1. Register online on Federal Tax Authority Website.
2. Fill essential details about business activities along with 12 Month turnover figures, projected turnover figures, expected import and export values etc.
Add details of Customs authority registration, if applicable to the business.
3. The various documents required are not limited to: Document identifying the authorised signatory, e.g. Emirates ID
Trade license.

Official documents authorising the entity to conduct activities within UAE Like:
Certificate of incorporation
Articles of association
Bank account details

If registration is successful, a Tax Registration Number (TRN) will be issued within 20 days. Find out How to register for VAT in UAE, How to Register VAT in Dubai, for more information, Inquire us today.

VAT Collection

VAT-registered businesses collect the amount and consumers pay the VAT of a 5 % on the cost of taxable goods and services purchased. Tourists in the UAE also pay VAT during the purchase.

Eligibility for Collection

A business exceeding the supplies and imports of taxable goods and services by AED 375,000 per annum must register for VAT. Also it is optional for businesses whose supplies and imports are between AED 187,500 to 374,999 per annum. A business house can claim the return on tax paid to their suppliers.

Filing Tax Return for VAT

At the end of each tax period, registered business and taxable persons submit a VAT return to Federal Tax Authority. It summarises the valuation of supplies and purchases made and shows the taxable entity’s VAT liability.

How to file VAT return?

VAT Tax Return is filled online through FTA portal. Before filling the VAT return form one must ensure that all the requirements are met.

• VAT Registration
• Branch of a Foreign Company in Dubai
• Virtual Office in Dubai
• Office for Rent in Dubai
• PRO Services
• Market Research & Feasibility Studies
• Liquidating a Company in UAE
• Opening Bank Account in UAE
• Trademark Registration