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How to Register for VAT in UAE for New Company
As the United Arab Emirates (UAE) diversifies its economy and revenue sources, adherence to newly implemented financial regulations becomes critical for businesses operating within the nation. One of these regulations, introduced in 2018, is the Value Added Tax (VAT) system. As a nascent company in the UAE, understanding how to navigate VAT registration is paramount to ensure full regulatory compliance and smooth operation of your business. In this blog, Choose UAE will provide you with an in-depth look at how to register for VAT in UAE for a new company.
VAT is an indirect tax levied on the consumption of various goods and services, and it’s generally passed onto the consumer at their purchase point. Within the UAE, the standard VAT rate stands at 5%, although some goods and services may be either exempt from VAT or subject to a zero rate.
For businesses that deal in taxable goods or services, VAT registration becomes mandatory when the total value of their taxable supplies crosses the mandatory registration threshold of AED 375,000 over the past 12 months. However, businesses may opt for voluntary registration if their taxable supplies and imports or taxable expenses exceed the voluntary registration threshold of AED 187,500.
How to Register for VAT in UAE for New Company
To initiate the VAT registration process in the UAE, the first step is to establish an e-Services account on the website of the Federal Tax Authority (FTA). Once you have set up your account, you can proceed by filling in the VAT registration form. This form requires details about your business, such as its legal name, nature of activities, anticipated revenue, banking information, and information about directors or partners. Alongside the form, you will need to compile and submit specific documents, including a copy of your trade license, a detailed activity list, Articles of Association, director/partner information, and copies of relevant identification documents. After reviewing your application and ensuring all necessary documents are included, you can submit your application. The FTA will send you a confirmation email, and your application will be processed within approximately 20 working days. Once approved, you will receive a Tax Registration Number (TRN), granting you the authority to charge VAT on taxable supplies.
How Can Choose UAE Help
Understanding and successfully navigating VAT registration is a critical milestone for new businesses within the UAE. It is of utmost importance to comply with the UAE’s tax laws to circumvent any penalties that may hinder your business’s growth. If you require guidance with VAT registration or managing your VAT obligations, Choose UAE is ready to assist you. Our team of seasoned consultants can steer you through the VAT registration process and ensure your business maintains full compliance with all its tax obligations.
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