Professional service from Atton Consulting: VAT / value added tax registration

UAE VAT / Value Added Tax Registration: Significance and Necessity

VAT/ value added tax registration is an important stage for a company doing business in the UAE. It is necessary to determine the compliance of your business with the registration criteria, thresholds for mandatory or voluntary registration, the procedure for creating an account, and much more. VAT in the Emirates is registered with the Federal Tax Authority – Federal Tax Authority United Arab Emirates (FTA). First you need to create an online account on the management portal. At the same time, the registration process itself is somewhat complicated, since it requires accurate filling out of the form and documents that meet the requirements. We will help you file a VAT declaration and take care of all the tax issues of your business.

The UAE Federal Tax Administration has defined qualification criteria according to which it is possible to find out whether a company is obliged to register or can do it voluntarily:

Mandatory registration	Voluntary registration
The registration threshold is from 375,000 AED	The registration threshold is from 187,500 to 375,000 AED
Necessarily	Not obligatory
It is applied if the turnover or import in the last 12 months has exceeded 375,000 AED	Applies if turnover, taxable expenses or imports have exceeded 187,500 AED in the last 12 monthsD
Applicable if your turnover is expected to exceed 375,000 AED in the next 30 days	Applicable if your turnover is expected to exceed 187,500 AED in the next 30 days
Failure to register within the prescribed period entails the payment of a fine	There is no fine or penalty related to the lack of registration

VAT or value added tax is an indirect tax levied on the sale of goods and services. VAT, one of the most common types of consumption tax, is accepted in more than 150 countries around the world. In the process of collecting value added tax, it is the final consumer in the supply chain who bears VAT costs. In the Emirates, VAT is also charged on imports of goods and services. The tax was introduced relatively recently – from January 1, 2018.

After the VAT registration process is completed, you will act as a tax collector on behalf of the Federal Tax Administration, collect tax from your end consumers and pay it to the government. Your business may also require the government to reimburse the tax you paid to your suppliers.

Atton Consulting offers on VAT / Value added tax registration

We are a consulting firm on VAT and taxes in the UAE, which provides services such as registration as a taxpayer, obtaining an TRN – tax registration number, VAT registration in Dubai, UAE. Your company will only have to pay the registration fees. Atton Consulting experts provide a comprehensive service for interaction with the tax authorities of the Emirates, including all registration procedures, reporting and filing of a declaration.

We provide full consulting support on issues related to taxation, including determining the status of a payer, registering on the portal of the tax service, calculating VAT and filing a declaration. Find out at the first consultation what advantageous offers Atton Consulting will help your company to solve the problems of compliance with the legislation of the UAE.

FAQ

What is VAT?

Value added tax (VAT) is a tax on all goods and services that is levied for the purpose of redistributing income in the economy. VAT is related to the taxation of final consumption, i.e. when goods, works and services pass directly into the hands of the final consumer. VAT has different values in different countries, in the UAE the tax rate is minimal — 5%. To find out whether your company is obliged to pay value-added tax and in what amount, contact the managers of Atton Consulting for advice!

The UAE jurisdiction is known as tax-free, why is VAT charged here?

VAT was introduced in the UAE in 2018, according to Federal Decree-Law No. 7 "On Value Added Tax". It regulates the procedures related to the introduction of VAT in the Emirates, the regulation and the amount of tax that is levied on imported goods and services. As well as goods, works and services that are supplied on the domestic market.

VAT was introduced in the UAE as part of a policy to reduce the economy's dependence on the oil industry. The governments of the Emirates strive to build economic ties that are based on stable sources of profit, such as trade, manufacturing, IT, tourism, services and services. After the introduction of value added tax, the Arab Emirates retained the status of a low-tax and tax-free jurisdiction, since VAT is not mandatory for everyone. According to the UAE Law on Tax Procedures registration is required for UAE enterprises with a turnover of 375,000 dirhams or more for any 12-month period.

What are the advantages of registering as a VAT payer?

You must register as a value-added tax payer in the UAE and file a VAT declaration, because this is regulated by the legislation of the Emirates and is aimed at streamlining the reporting of financial transactions of the company. VAT is paid monthly and quarterly, depending on the type of activity and type of company. Registration is also carried out to keep the FTA up to date with the status of your company's accounts, records, ledgers and financial statements.

The main purpose of registering a VAT payer or filing a declaration is to show the authorities a summary of the value added tax. This will serve as confirmation that the company carefully complies with VAT obligations. Moreover, many companies are required by law to register as a VAT payer and submit tax reports, otherwise penalties are provided. Find out in consultation with our specialists how to get a professional service for registration as a VAT payer and you are guaranteed to avoid fines!

When should a company register to pay VAT in the UAE?

The company is obliged to register as a payer in the case of turnover amounts from 375,000 dirhams UAE per year. Registration is optional for companies whose turnover ranges from 187,500 to 375,000 dirhams per year. To find out if you are required to pay VAT, please contact our consultants for more information!

Is it necessary to have a VAT payer's registration in the UAE?

UAE resident enterprises that carry out taxable deliveries to the Emirates market must necessarily register as a VAT payer. The main condition is that the value of their taxable supplies and imports over the past 12 months has exceeded or will exceed within the next 30 days the threshold of mandatory registration in the amount of 375,000 dirhams of the UAE.

What documents are required for VAT registration in the UAE?

Documents required to register a VAT payer in Dubai, UAE:

a copy of the trade license;
a copy of the passport of the owner/manager in whose name the trading license is registered;
a copy of the Emirates identity card of the owner/manager in whose name the trading license is registered;
company contact details;
Foundation Agreement (MOA);
bank details, including IBAN;
turnover report with supporting invoices;
company seal, as well as some other documents.

To find out exactly what documents are required for the registration of your company, contact Atton Consulting in Dubai. We will prepare the whole package for you, quickly and successfully carry out registration, provide the rest of the procedures related to taxation in the UAE.

Who is exempt from VAT in the UAE?

VAT exemption in the UAE applies to certain financial services, ownership of residential real estate, land, etc. In order to be guaranteed to use the VAT exemption, it is necessary to fulfill the special conditions specified in the Emirati VAT Law and additional regulatory legal acts. You can clarify this issue with our consultants, all updates of local legislation are available to us.

How many types of VAT exist in the UAE?

In the UAE, two VAT rates apply: the standard rate of 5% and the zero rate of 0%. Our experts will help you determine whether your deliveries are exempt from VAT. They will also explain what is the difference between VAT exemption and the 0% rate – this is important for solving registration issues as a payer.

How can I register for a TRN in the UAE?

To register as a payer, you need to apply for a TRN online on the portal of the Federal Tax Administration. The procedure for creating an account, obtaining a registration number, forming and uploading a package of documents is a complex and responsible process. It requires the participation of experienced consultants who will help to do everything without mistakes and will provide support at all stages of communication with the tax administration. Apply for the service of registration as a VAT payer to the professionals of Atton Consulting!

I have registered as a taxpayer, how can I find out my TRN?

The identification number of a taxpayer in the UAE is assigned by the Federal Tax Administration automatically after registration. Atton Consulting specialists will issue a certificate with a number after passing the necessary registration procedures for your company. In the future, it will be indicated on your documents that are related to taxation.

Is it possible to apply for VAT registration online?

The application for registration, registration of an account, filing of a VAT declaration in the Emirates is made only online through the portal of the UAE Federal Tax Service. Atton Consulting provides professional services for all registration procedures on the management portal, as well as deals with issues of taxation, accounting, auditing and other administrative functions.

Can I register as a VAT payer without turnover in the UAE?

Your business must register for VAT if it is registered in the UAE and your annual turnover exceeds 375,000 dirhams UAE. If your company's turnover ranges from 187,500 to 375,000 dirhams per year, registration is possible on request. Below 187,500 dirhams the UAE will not register as a VAT payer.

I need help registering VAT in Dubai, where can I apply?

We are a consulting firm on VAT and taxes in the UAE, which provides services such as registration as a taxpayer, obtaining a TRN, VAT registration in Dubai, UAE. Atton Consulting experts provide a comprehensive service for interaction with the tax authorities of the Emirates, including all registration procedures, reporting and filing a declaration. Find out at the first consultation what advantageous offers of Atton Consulting for your company will help you solve the problems of compliance with the UAE legislation.