VAT Registration in Abu Dhabi, UAE

What is Value-Added Tax (VAT) in UAE?

Since January 1, 2018, the UAE has implemented the Value-Added-Tax (VAT). VAT is an indirect tax imposed at the point of sale on the consumption of products and services.

Why is UAE VAT registration important?

Every step of the supply chain is subject to VAT. The tax rate is 5%, and as with all indirect taxes, the end user bears the cost burden; however, businesses are responsible for collecting and submitting VAT from consumers. Businesses collect and account for VAT on behalf of the government, and they can then request VAT refunds from the government.

VAT Registration Required for All Businesses in UAE

All UAE enterprises whose annual revenue exceeds the minimum threshold of AED 375,000/- are required to register for VAT with the Federal Tax Authority (FTA). Therefore, it is essential for businesses to determine whether they are required to register for VAT and to comprehend the level of detail required for the registration process.

Voluntary registration for VAT

All UAE enterprises whose annual revenue exceeds the voluntary registration threshold of AED 187,500 are eligible to register for VAT. Therefore, it is essential for businesses to have a thorough comprehension of the supplies and services that must be accounted for when calculating annual revenue.

Group VAT Registration

Groups of individuals are permitted to register for VAT group registration. These individuals should be related or affiliated with the businesses.

Documentation required for VAT registration

There is an online procedure for VAT registration and fee payment in the UAE. Federal Tax Authority (FTA) requires two to three weeks to issue the Tax Registration Number (TRN) following online registration. The following documents are required for UAE VAT registration.

·        Copy of a valid Business License.

·        A copy of the owner’s or holder’s passport.

·        A copy of the Emirates ID of the license proprietor.

·        Articles of Incorporation (not required for sole proprietorships).

·        Address of the business in full.

·        Contact information for the concerned party (mobile number, email address).

·        Bank account information.

·        Information regarding any additional entities owned by the proprietor.

·        A signed and postmarked income statement for the preceding year.

·        Estimated revenue and expenses for the following 30 days following the implementation of VAT.

·        Additional general business operations data.

Where we originate

We at “Elucidation for Accounting (ElucidationAcc)” offer VAT registration and VAT accounting services to keep your business operational and to help you avoid VAT penalties and fines.

Elucidation for Accounting is endowed with a team of zealous VAT specialists who will ensure that your lack of familiarity with VAT rules and regulations, structure and compliance issues, and lack of an effective accounting system will not negatively impact your business. Our exclusive VAT consulting services include VAT registration, VAT return filing, evaluation of VAT’s impact on your business model, and assistance with all VAT-related issues.