Our company provides expert services for both registering and deregistering VAT in the UAE, ensuring that businesses adhere to the rules set by the Federal Tax Authority (FTA). VAT registration is crucial for businesses in the UAE to sidestep penalties and uphold FTA regulations. We make the UAE VAT registration process easy and efficient as part of our comprehensive VAT Registration Services. As leading consultants in Indirect Tax within the UAE region, we specialize in FTA VAT Registration.
For businesses in the UAE, FTA VAT Registration becomes obligatory if their turnover surpassed AED 375,000 within the last 12 months or is projected to exceed that in the upcoming 30 days. Moreover, voluntary registration is also open for businesses with a turnover or expenses that fall under VAT and go beyond AED 187,500.
Non-residents engaging in taxable transactions within the UAE must also undergo VAT registration, unless another UAE VAT-registered individual is accountable for VAT under the Reverse Charge Mechanism. In the case of non-residents, the threshold does not apply.
On the other hand, VAT De-registration is equally important for VAT compliance in the UAE, as it allows businesses to cancel their VAT registration and suspend their Tax Registration Number (TRN) when they are no longer required to pay VAT. The purpose of VAT De-registration is to prevent businesses from incurring unnecessary costs or penalties and to ensure that accurate records are maintained by the FTA. Failure to register for VAT or apply for de-registration within the specified time frame can result in penalties.
At Centriz Corporate Services, we make the VAT Registration and De-registration process hassle-free for our clients. Our experienced professionals assist businesses in submitting the required documents, completing the online VAT registration process, and ensuring compliance with FTA regulations. We also offer ongoing support for any queries or concerns related to VAT Registration or De-registration.
Moreover, Centriz provides value-added services that support businesses in their VAT Registration and De-registration process. Our team offers expert advice on registration thresholds and exemptions, helping businesses make informed decisions. We also assist businesses in maintaining accurate records and preparing for VAT audits, allowing them to focus on their core activities while we take care of their VAT compliance requirements.
VAT Registration Guidelines for Businesses
If you're operating a business in Dubai, UAE, it's important to understand the specific criteria that determine whether VAT registration is required. These criteria are based on your business's annual revenue. To simplify the decision-making process, there are three key income brackets to consider.
- If your business provides taxable goods or services and earns over AED 375,000 annually, VAT registration is mandatory.
- For businesses with an annual income between AED 187,500 and AED 375,000, offering taxable goods or services, VAT registration becomes a choice. This falls under voluntary registration.
- Businesses that offer taxable commodities or services and make less than AED 187,500 in annual income are not obligated to register for VAT.
Understanding these criteria helps you determine whether your business should be registered for VAT, ensuring compliance with the regulations in Dubai, UAE.
Documents needed for VAT registration
Before applying for VAT Registration in Dubai and UAE, you need to keep the below-mentioned documents ready:
- MOA of the business establishment
- Owner's and partner's Emirates ID (copy)
- Trade license of the business (copy)
- Owner's and partner's passport (copy)
- Contact information of the company
- Category of business and information regarding the activities conducted
- Information regarding bank account
- The latest annual income statement
The VAT registration process
To register your business under VAT on the FTA portal, you'll need to provide the following information:
- Your details
- Contact information
- Bank details
- VAT registration specifics
- A declaration
- Verification, followed by submission
The FTA will verify the entire submitted data and documents. If the FTA finds the submitted data acceptable and sufficient, it will proceed towards the final approval of the application. The application approval will lead to the issuance of a Tax Registration Number or TRN.
Benefits of VAT in Dubai, UAE
Here are some of the most evident benefits of registering a business under the VAT system.
- Registering under VAT avoids penalties.
- The business entities can formally request vat reimbursements
- VAT offers enhanced business prospects.
- VAT enhances the profile of the company.
- When matched with other taxation systems like indirect tax, VAT management is uncomplicated.
- Prevents the occurrences of tax evasion.
- VAT offers improved revenue generation.
- Being a neutral tax, VAT can be levied on all business categories.
Advantages of VAT Group registration
- The best thing about this plan is that it allows related entities to submit their returns together as a single unit.
- Companies that have economic, structural, or administrative ties can join this scheme and submit just one return.
- When a business becomes part of a VAT group, managing finances becomes simpler.
- The businesses within the group don't have to individually file their returns. Instead, they can do it as a group effort.
- VAT does not apply to transactions that occur within the group, but it is required for all transactions outside the group.
Centriz Corporate Services provides accounting, bookkeeping, tax, and VAT services besides various business services to a wide range of business establishments in Dubai and UAE.
Centriz VAT consultants in Dubai will assist you in the process of VAT return filing, accomplishing the same in a very feasible and economical manner. Our expertise and experience in ensuring VAT compliance are proven beyond doubt. To begin the process, we request you get in touch with Centriz VAT experts.