One of the main objectives of the UAE Federal Government as well as the respective Emirate Governments for introducing VAT is to generate more revenue for providing enhanced support to the citizens and residents by offering various types of public services – including medical facilities like hospitals, good roads and transportation facilities like metro services, public schools, parks, waste control etc. The expenses of these services are borne by the government from its public funds which are earmarked in the budgets. VAT will provide a new source of non oil revenue for the Emirates which will increase the revenue towards the Government exchequer. The will help the Government for providing better and high-quality public services in the future thereby enhancing the living standard of the public. VAT will also result in the increase in the government non oil revenue which is estimated to be around 2% of the GDP.
VAT in the UAE is taking its course of action from 1st January 2018 at a minimal rate of 5%. It is compulsory for businesses to register for VAT in the fourth quarter of the year 2017. VAT Registration in UAE will be an online process using eservices.
Documents and information required for VAT Registration in the UAE:
The soft copies of the documents should also be uploaded along with the application.
• Documents identifying the authorized signatory e.g. passport copy, Emirates ID
• Trade license copy of the company
• Other official documents authorizing the entity/individual to conduct activities within the UAE e.g. certificate of incorporation, articles of association, power of attorney etc.
• Description of business activities
• Turnover for the last 12 months in AED
• Supporting document for 12-month sales
• Expected turnover in next 30 days
• Estimated value of imports for one year from each GCC countries
• Estimated value of exports for one year to each GCC countries
• Whether you expect to deal with GCC suppliers or customers
• Supporting documents for customs registration in each Emirates if applicable.
• Details of Bank Account