Following Are the Steps to Register Your Company's VAT Number in Dubai
Are you preparing to dominate the UAE market with your recently founded company? It’s necessary to first consult a VAT specialist in Dubai before turning on the “Open” sign and extending a warm welcome to crowds of consumers. We are all aware that as of January 2018, all businesses planning to start in the UAE must register for Value Added Tax (VAT), which includes yours!
It’s crucial to contact a VAT consultant in Dubai and avoid becoming sidetracked by tax compliance concerns, whether you are targeting the retail market or the hospitality sector. Here are a few things you should know about the current tax laws in order to give your firm a fresh start and avoid the inconveniences of potential tax infractions.
Read on.
What exactly is VAT?
Value Added Tax, or VAT, is the newest tax in the United Arab Emirates and was implemented there on January 1st, 2018. VAT functions as an indirect tax and is a general consumption tax that is incrementally collected at a rate of 5%. It is imposed in an effort to give the nation a new source of funding that will be used to offer the general population high-quality services.
Is it necessary for your business to register for VAT?
Despite being an essential component of the UAE’s tax laws, not all firms are compelled to register for VAT. Only companies with taxable turnovers above AED 375,000 in a calendar year are now required by law to register for VAT. Businesses that generate taxable revenue of less than AED 375,000 but more than AED 187,500 are nevertheless permitted to register for VAT voluntarily.
Why file a VAT return?
The first justification for registering for VAT is that the law requires it of you (as long as you meet the requirements). On the other hand, registering for VAT will also enable you to account for the VAT you charge your clients on tax returns submitted to the Federal Tax Authority and levy the proper output tax on your taxable goods and services (FTA). If you have a tax invoice or other supporting documentation and have already paid the VAT you intend to reclaim; you are eligible to recoup any input tax you have paid on products or services relevant to your business on your tax returns.
How can your business register its VAT number?
Here are some crucial actions you must remember before submitting your application:
• Open your E-Services account and log in.
– Making an account on the FTA’s web portal is the first step in registering your business’s VAT number. You just need to establish a password and enter your email address to achieve that.
• Select VAT Registration.
– A button that reads “register for VAT” will appear on the screen once you’ve registered your account. To access the VAT getting started guide, click this button.
• Complete the required fields on the VAT Registration Form.
After reading the guide, you will be prompted to confirm that you have read all the materials. Following that, a registration form with eight distinct sections will be given to you. Before you may submit your application, complete the relevant fields to advance to the next page.
• Gather the required paperwork.
A few documents must be scanned and uploaded to the FTA before you can finish the process. These documents include a copy of your company’s trade licence, articles of association, address and phone number, memorandum of association, bank account information, and income statement for the previous year.
The FTA will now review your application after completing the process and submitting it. If all goes according to plan, you will get an email confirmation, your TRN, and your tax registration certificate.
Conclusion
Are you eager to launch your business in Dubai? Prepare to dominate your desired industry without worrying about paying a fine for breaking the law on taxes.
Talk to a VAT consultant in Dubai immediately to learn more about the finer points of the UAE’s tax laws.