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How to Register VAT for a New Company in UAE
Venturing into a new business can be an exciting yet complex journey, layered with numerous financial and regulatory obligations that need careful consideration. Among these responsibilities, one question often stands out for new entrepreneurs – ‘how to register VAT for a new company.’ With the introduction of Value Added Tax (VAT) reshaping the UAE’s fiscal landscape, comprehending the VAT registration process has become an imperative cornerstone for businesses striving to align with the nation’s tax regulations.
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How to Register VAT for a New Company in UAE
Decoding VAT in the UAE
Value Added Tax (VAT), as the name suggests, is a consumption tax that gets added to the cost of goods and services. The UAE instituted a standard VAT rate of 5% on January 1, 2018. This tax policy marked a significant shift in the UAE government’s strategy aimed at diversifying the economy and diluting the reliance on oil-based revenues. While VAT applies ubiquitously across most goods and services, there are certain exceptions wherein some goods and services are zero-rated or completely exempt from VAT.
The A-Z of VAT Registration
Registering a new company for VAT in the UAE involves a detailed and step-by-step process:
Ascertain Your VAT Eligibility:
Before proceeding with VAT registration, it’s essential to determine whether your business meets the criteria. In the UAE, businesses generating an annual revenue exceeding AED 375,000 are required to register for VAT. Businesses earning between AED 187,500 and AED 375,000 may opt for voluntary registration. Choose UAE can help assess your eligibility and guide you on whether registration is mandatory or optional for your business type.
Get Started with an e-Services Account:
Begin the process by setting up your own e-Services account on the FTA website. This platform allows you to manage all VAT-related transactions in a centralized digital space. Our team can walk you through the technical setup as part of our accounting and compliance support.
Fill Out the VAT Registration Form:
Once your e-Services account is active, complete the VAT registration form with accurate business details, including legal structure, ownership, business activities, financial data, and revenue projections. If you’re unsure about the requirements, our experts can ensure every field is properly completed to avoid delays.
Review and Submit:
Carefully review the form for any errors or missing information before submitting it. Any inaccuracies could delay the approval. Choose UAE provides thorough documentation review and legal advisory to help you submit a compliant and accurate application.
Await FTA Review:
After submission, the Federal Tax Authority (FTA) reviews your application. If it meets all criteria, you’ll receive a Tax Registration Number (TRN), your official identifier in all VAT-related matters. Our VAT specialists remain available to assist you post-registration, from filing returns to maintaining compliance.
Significance of VAT Registration
VAT registration signifies more than mere compliance with regulatory norms. It represents a business’s commitment to the principles of fiscal responsibility and its alignment with the UAE’s economic diversification plans. From a practical perspective, VAT registration ensures financial transparency and enforces a structured approach to tax administration, making businesses more accountable. From a reputational viewpoint, VAT registration also helps enhance a business’s credibility as it demonstrates adherence to government regulations.
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How Can Choose UAE Help
At Choose UAE, we specialize in assisting businesses in navigating the intricacies of VAT registration in the UAE. We understand that the nuances of VAT and its potential implications can be daunting, especially for newcomers in the business world. Our team of experts is equipped to provide you with end-to-end guidance—from determining your VAT eligibility to accurately completing and submitting the VAT registration form. In addition to VAT, we offer comprehensive accounting and compliance services to help you manage your obligations effectively. By joining forces with Choose UAE, you can be assured of a streamlined, stress-free VAT registration journey, allowing you to concentrate on your core business activities. Contact us today to get started.
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