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How to Register VAT for a New Company in UAE

how to register vat for new company

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.

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 the VAT registration, it’s vital to determine whether your business is required to register for VAT. In the UAE, businesses generating an annual revenue exceeding AED 375,000 are mandated to register for VAT. Meanwhile, businesses with annual revenues falling between AED 187,500 and AED 375,000 have an option for voluntary VAT registration.

Get Started with an e-Services Account: Take the first step towards VAT registration by creating your own e-Services account on the FTA website, granting you access to a comprehensive digital hub for handling all your VAT-related transactions.

Fill Out the VAT Registration Form: With the e-Services account ready, the next step involves completing the VAT registration form available on the portal. This form seeks detailed insights about your business, including its legal status, ownership/partnership specifics, business activities, financial details, and projected revenues.

Review and Submit: After meticulously filling out the form, review every section to ensure all the information is accurate. Any discrepancies or inaccuracies might lead to delays or rejection. Once verified, you can submit the form.

Await FTA Review: Following the submission, the FTA takes over the process to review your application. If all the criteria are met, the FTA approves the application and issues a Tax Registration Number (TRN), the unique identifier for your business in all tax affairs.

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.



How Can Choose UAE Help

At Choose UAE, we specialize in assisting businesses in navigating the intricacies of VAT registration. 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, right from understanding your VAT eligibility to completing the VAT registration form. By joining forces with Choose UAE, you can be assured of a streamlined, stress-free VAT registration journey, thereby allowing you to concentrate on your core business activities.

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