VAT or Value Added Tax is an indirect tax added up on consumption of goods and services. VAT has been adopted as a stable tax system by almost 160 countries world wide. VAT tax serves as a different area of revenue generation for the higher authorities and government.
Including Dubai, UAE is the one of most business pointed and growing countries of the world. The Emirates have got several zones based on different criteria, that have been considered as a business free-tax zone that became the main point of investments for foreign investors and multi national companies. One business or establishment is registered under VAT law, means that; it holds a recognition in the eyes of the government and in a result company become more authentic. Having realized this, the GCC countries have recently registered themselves under VAT law and started to implemented it by 1st January of 2018 with 5% as the VAT rate.
A business owner or a company in Dubai, UAE planning to establish their business networks in the United Arab Emirates, or especially in Dubai eve if it is a small, medium or a large business, they must need to get the business registered under UAE VAT law.
Who Can Register for VAT in Dubai/ UAE? or Who must take a VAT registration?
Depends on the income generated by a business.
The defined slab for entities who will become responsible for VAT Registration are as follows:
Businesses having taxable supplies and imports above AED 375,000
Mandated to apply for VAT registration
Businesses having taxable supplies and imports between AED 187,500 and 375,000
Can voluntarily apply for VAT registration
Who Cant Register for VAT in Dubai/ UAE
Businesses having taxable supplies and imports less than AED 187,500
Not required to apply for VAT registration
What is the importance of VAT Registration in Dubai,UAE
VAT is a must and mandatory procedure for every eligible business entities as per the above slab, and it have its own added advantages:
VAT boosts the business profile
VAT averts financial penalties
One may can claim for VAT refunds
It helps to grab a mass market with more authenticity
VAT Registration Process in Dubai, UAE [www.tax.gov.ae]
To initiate VAT registration in UAE, one must fill the VAT Registration form online and submit the essential documents required along with the form in order to attain VAT Number. The entire registration process takes place on an online platform. Let’s have a look at the documents.
Documents for VAT Registration in UAE
The documents required for VAT Registration in UAE include:
Copy of trade licensePassport
copy of business owner and partnersCopy of Emirates ID held by owner and partners
Memorandum of Association (MOA) of the company
Company contact details
Bank account details
Income statement for the last 12 months
Nature of business and activities performed
UAE, VAT Registration Online
The online registration for VAT in UAE can be done through the VAT registration portal available on the official website of www.tax.gov.ae.
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