VAT (Value Added Tax) registration is mandatory for businesses meeting certain criteria in Dubai and the wider UAE. As of my last update, here are the general requirements for VAT registration in Dubai:
1. Mandatory Registration Threshold:
– A business must register for VAT if its taxable supplies and imports exceed AED 375,000 per year.
– If the business expects its taxable supplies and imports to exceed this threshold within the next 30 days, it must also register for VAT.
2. Voluntary Registration:
– Businesses with taxable supplies and imports between AED 187,500 and AED 375,000 per year have the option to voluntarily register for VAT.
3. Taxable Supplies:
– Taxable supplies include the sale of goods and services that are subject to VAT at the standard rate of 5% unless they are zero-rated or exempt.
4. Documentation Required for Registration:
– Trade License: A copy of the trade license issued by the relevant authority.
– Emirates ID: Copies of Emirates IDs of the business owner(s) and authorized signatories.
– Passport Copies: Copies of passports of the business owner(s) and authorized signatories.
– Contact Information: Contact details of the business, including address, phone number, and email.
– Bank Account Details: Details of the business’s bank account in the UAE, including IBAN and bank statement.
– Financial Records: Financial records demonstrating the business’s taxable supplies and imports.
5. Registration Process:
– VAT registration in Dubai is typically done online through the Federal Tax Authority (FTA) portal.
– The business needs to create an account on the FTA portal and fill out the online registration form.
– Once the application is submitted, the FTA will review the information and may request additional documentation if necessary.
– Upon approval, the business will receive a VAT registration certificate.
6. Deadlines:
– Businesses must register for VAT within 30 days of reaching the mandatory registration threshold or becoming aware that they will exceed it within the next 30 days.
7. Compliance:
– After VAT registration, businesses are required to comply with VAT regulations, including issuing tax invoices, filing VAT returns, and maintaining accurate records.
It’s important to note that the requirements and processes for VAT registration may be subject to change, and businesses should always refer to the latest guidance from the Federal Tax Authority (FTA) or seek professional advice to ensure compliance with VAT regulations in Dubai and the UAE.