Do you need to register for VAT in the UAE? Worried about business VAT Returns? Contact MNV Associates for voluntary or mandatory VAT registration +971523750920

VAT Registration Service in the UAE

With the announcement of the introduction of VAT in UAE from 1st January 2018, the companies must register themselves as per the standards specified in the new tax regime. Read on to find out the differences between voluntary and mandatory registrations.

All the individuals or the companies engaged in agencies activity have to comply with the rule laid down through the Federal Tax Authority. For example, VAT registration will be crucial for all the companies that fall below the threshold annual turnover of AED 375,000 and are expected to register underneath this new regime. The organizations that have not registered for VAT in UAE will neither be capable to charge VAT on their sale nor will be in a position to declare Input VAT paid on their purchases. Moreover, a commercial enterprise can get itself registered, regardless of the reality that they meet the threshold annual turnover criteria or not, i.e. Voluntary registration in the UAE is also necessary for organizations that do not meet the required net income threshold but are over the AED 187,500 cap. The registration criteria have been described below in a more explanatory form.

Mandatory Registration:
The businesses must register themselves if the annual turnover exceeds AED 375,000 and this threshold should have been exceeded in the final 12 months taxable materials can be made by way of the business in next 30 days that will have a value greater than the threshold of mandatory registration.

Voluntary Registration:
If the annual turnover reaches AED 187,500 but is below AED 375,000, firms that do not meet the required  threshold requirements may choose voluntary registration, and this threshold is expected to be passed in the next 30 days. The taxable expenditure exceeds the volunteer enrolment threshold value over the last 12 months.

Please see the list of documents required for VAT Registration in the UAE:

  • Trade License. 
  • Passport copy of the owner/partners.
  • EID copy of the owner/partners.
  • MOA (this is not required for sole establishments).
  • Complete address and P.O Box number of the company.
  • Bank Details (bank name, branch name & address, account number, account name, SWIFT Code and IBAN).
  • List of other entities (owned by the owner/partners).
  • Income statement for the period of 12 months.
  •  Expected revenue and expense for the next 30 days after VAT implementation.
  • Is any export or import taking place?
  • Are there any customs involved? If yes, attach VAT registration letter.List of countries your company is doing business with in GCC?
  • If owner/partners represent more than one entity, please indicate if you want one tax group number for all entities or separate tax numbers for every entity.

Whether you are a business owner, or consultant, we have tax Consultants in Dubai with the expertise available for you.