VAT Registration in the UAE

1st January 2018 onwards, value added tax (VAT) would be introduced in the UAE. This would be levied @ 5% to non-essential consumer goods. Businesses can start registering for VAT 3 months prior, that is, from 1st October 2017. Federal Tax Authority (FTA) is the regulatory body for value added tax in the UAE.

Browse through the questions below to find out everything you need to know on how to register your company for VAT.

Am I eligible for VAT?

All businesses operating in the UAE dealing in goods or services falling in the taxable category with an annual turnover of over AED 375,000 are required to register for VAT. For companies with the yearly supplies and imports’ value under AED 375,000 but above AED 187,500, VAT registration is optional and voluntary.

What are my VAT-related duties?

All companies in the UAE must record all their monetary transactions, and ascertain that their ledgers are updated and transparent. Businesses eligible for VAT must register for it.

VAT-registered businesses must:

  • Levy the correct amount of VAT on their taxable goods and services
  • Maintain business records to enable the government or auditor to check if everything is being followed properly
  • Report the VAT charged, and the VAT paid to the government, regularly

What is the last date for registering for VAT?

Businesses with an annual revenue exceeding AED 150 million are urged by the authorities to register for VAT before 31st October 2017. Businesses with an annual revenue exceeding AED 10 million are advised to register before 30th November 2017. All businesses eligible for VAT should be registered by 1st January 2018, and should submit their registration applications before 4th December 2017 – to obviate the risk of not being registered on time.

How to Register for VAT?

Companies can register on the online portal of the FTA.

Businesses should form an online account on the website and submit the VAT registration form. For the details on how to proceed with VAT registration, you can refer to the guidelines published by the FTA.

Since VAT would come into effect in the UAE from 1st January 2018, companies operating in the country would have to think of their VAT implementation plans. This includes procedures for VAT filing or reclaiming, as applicable. This could have substantial impact on revenues, requiring companies to chart out appropriate financial, technical, compliance and training systems to be in line with the new tax norms.

We at Business Setup Worldwide have our team of experts to help you with company formation, registration and counselling. For any queries on VAT or tax consultation for companies in the UAE, do contact us, even if it’s just for a friendly advice.

Business Setup Advisor

Daria Lantceva

Office 2307

10th floor

Rashid Tower

Trade Centre 2

P.O. Box 293816

Dubai

United Arab Emirates

 

Phone: +971 4 3867444

Mob: +971-52-4829865

Fax: +971 4 3867474

Email: info@businesssetup.com

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