UAE is known as one of the foremost business hubs in the middle east. Its stellar reputation as an entrepreneur –and- investor-friendly city is the reason why, even during hard times like the pandemic, thousands of startups were being formed even during hard times like pandemic. This is due to great efforts made by the UAE government to contain the crisis, with several extensive packages to support all businesses affected.
If you are a new entrepreneur in Dubai you need to know whether your business is eligible or required to apply for Vat in the UAE. Just read on to learn more about the VAT
What is VAT?
The value-added tax or VAT is a charge that must be paid by customers on the products and services they purchase, with benefits going to support and fund public services in the region.
At a rate of 5 percent, it is a business’s legal responsibility to collect the tax for the government at the customers’ point of sale.
As a result, as a business owner in the UAE, you must ensure that your company is VAT registered.
Where to register?
In order to register for the value-added tax as a business setup in Dubai and the UAE (FTA).
You first need to create an e-services account for your business with the federal tax office. After you’ve created your e-service account, which includes a username and password, and now you can register your new business for VAT in Dubai.
VAT registration procedure in UAE
To register your business for VAT, you should fill out an online form to identify your business and its activities and practices. You need to specify certain points like, who is operating your business and show whether it has incorporated the details of your business’s trade license, including required documents and contact details, among other VAT registration requirements and VAT registration documents.
One of the most crucial requirements to meet when applying for a VAT number in Dubai is to have a tax identification number. This is obtained in accordance with the Certificate of Incorporation from the Dubai Trade Register.
A VAT certificate will be issued to a corporation based on its tax identification number.
Several documents need to be prepared when registering for VAT in Dubai. Among these are:
- Business license (copy after the trade or commercial license)
- Copies for the passport of the owner and other shareholders in the case of companies;
- The Memorandum and Articles of Association of the company;
- Information about the representative of the company and contact information;
- proof of the registered address of the company in the UAE;
- Information about the corporate bank account (IBAN included)
- An income statement for the last 12 months (where available)
- An estimation of the expected revenue, turnover, and expenses for the following 30 days after VAT registration.
- Information about the import-export activities of the company (where applicable)
- The company’s customs code and copy of the Dubai Custom Code Certificate (where available)
- Information about the Gulf Cooperation Council countries in which the company trades;
- A detailed description of the company’s business experience for the last 5 years (where available)
- Information on whether the company will be part of a tax group
- Copies after the identification papers with the necessary visas in the case of natural persons.
Despite the possibility to register online, there are too many details that might make the process complicated, so when you need to register for Vat in Dubai, you need to appoint a local representative and ITQAN consultants can act on your behalf when dealing with the authorities.
We can also handle various accounting matters of your companies in the UAE and all over the G.C.C region.