Getting ready to conquer the UAE market with your newly-established business? Before you switch on
the “Open” sign and welcome loads of customers into your space, it’s important to see a VAT consultant
in Dubai first. As we all know, under the new tax regulations, businesses that are set to open in UAE
after January 2018 are now required to register for Value Added Tax (VAT) – and yes, that includes
Whether you are aiming for the hospitality sector or targeting the retail industry, it’s important to get in
touch with a VAT consultant Dubai and not get distracted by tax compliance issues. To let your business
welcome a fresh start and ditch the hassles of possible tax violations, here are a few things you need to
know about the current tax regulations.
About VAT: What is it?
Value Added Tax, or VAT, is the latest addition to the taxes in UAE and was introduced in the region on
the first of January 2018. Working as an indirect tax, VAT comes as a general consumption tax that is
collected incrementally at a rate of 5%. It is levied to help create a new source of revenue for the
country that will be utilised to provide high-quality services to the public.
Is your company required to register for VAT?
Although VAT comes as a necessary part of UAE’s tax regulations, not all businesses are required to
register for VAT. Under the current law, only businesses that have a taxable turnover that exceed AED
375,000 in a 12-month period are compelled to register for VAT.
However, businesses that have a taxable turnover that is less than AED 375,000, but more than AED
187,500 can still have the option to register for VAT voluntarily.
Why register for VAT?
The first reason why you must register for VAT is, well, because that’s what the law mandates you to do
(as long as you’ve reached the qualifications). However, on a side note, registering for VAT will also
allow you to charge the appropriate amount of output tax on your taxable goods and services and
account for the VAT you charge to your customers on tax returns made to the Federal Tax Authority
You will be able to reclaim any VAT you’ve paid on business-related goods or services (input tax) on your
tax returns, as long as you have a tax invoice or other evidence and have paid the VAT you wish to
How to register your company VAT number?
Generally, the process of registering for Value Added Tax can never be getting easier.
To facilitate the businesses who want to register their company VAT number, the Federal Tax Authority
(FTA) has opened its portal for online VAT registration.
To start your application, here are a few important steps you need to take note of:
· Login to your E-Services Account
– The first step to register your company VAT number is to create an account on the online portal of
the FTA. In order to do that, you’ll only need to provide your email address and create a password.
· Click on Register for VAT
– Once you’ve created your account, a button that tells “register for VAT” will pop up on the screen.
Click on this button to be directed to the VAT getting started guide.
· Fill out the necessary details in the VAT Registration Form
– After reviewing the guide, you will be asked to confirm that you have read all the documents. From
there, you will be provided with a registration form consists of eight different sections. Fill out the
necessary details to move to the next page until you can submit your application.
· Prepare the necessary documents.
Before you can complete the process, there are a few documents that are needed to be scanned and
uploaded to the FTA. Among these include the trade license copy of your business, articles of
association, your company’s address and contact details, your company’s Memorandum of Association,
its bank account information, and the income statement of the company for the past year.
Once you have submitted your application and have completed the process, the FTA will now review
your application. If everything goes well, you will receive a confirmation by email, along with your TRN
and your tax registration certificate.
Excited to start your business in Dubai? Get ready to take your target industry by storm without the
need to face any penalty due to tax law violations.
To know more about the ins and outs of UAE’s tax regulations, be sure to talk with a VAT consultant in
Dubai as early as today.