SignERP provides VAT registration services in Dubai, UAE.

SignERP, the top financial professionals in the area, offers hassle-free VAT registration services in the UAE. Fast and safe procedure. Conserve Time and Guarantee Adherence

Value Added Tax (VAT) in UAE

It doesn’t take much ink to write the word VAT. In the United Arab Emirates, Value Added Tax is a relatively new concept that is familiar to both consumers and businesses. The majority of the 160+ countries that employ a VAT system are members of the European Union. Prior to the UAE government’s decision to diversify its revenue streams, the UAE was not one of them. The United Arab Emirates implemented a value-added tax, or consumption tax, on January 1, 2018. By implementing VAT, the government releases companies from additional tax obligations and enables them to collect and remit VAT from customers at the time of sale.

The majority of products and services in the United Arab Emirates are subject to a normal VAT rate of 5%. The remaining supply are either free from VAT or subject to a 0% rate, contingent on completing specific requirements. You may find comprehensive information regarding VAT on the websites of the Ministry of Finance and the Federal Tax Authority.

VAT Registration in UAE

Companies in the United Arab Emirates have the option to voluntarily register for VAT or be required to do so based on requirements set out by the Federal Tax Authority (FTA). The FTA site is used to register VAT online. Following a successful registration, businesses are assigned a Tax Registration Number (TRN).

The FTA has established a VAT registration threshold for businesses, dividing the procedure into two categories: required and optional. Before registering for VAT or submitting an application for a TRN, businesses must determine which category they fit under. The requirements for each category vary depending on the overall yearly turnover of the business. Before deciding whether to register voluntarily or by law, firms need to examine a number of issues.

UAE VAT-Registered Entities’ Responsibilities

Following your voluntary or required conversion to a VAT-registered firm, you will need to:

• Send in your VAT returns.
• Submit VAT reimbursements
• Maintain documentation and account for all VAT transactions.
• Pay the FTA’s required VAT and charge it.
• Fulfil VAT-registered businesses’ duties
• Respect the need to keep VAT records and submit them to the authorities on a regular basis.