VAT REGISTRATION PROCESS IN UAE
In UAE, the businesses whose turnover exceeds AED 375,000 have to mandatorily apply for VAT registration. To facilitate the businesses to register, the Federal Tax Authority (FTA) has opened its portal for online VAT registration. The deadlines based on the turnover of businesses are already announced by FTA and the registration will be carried out in a phased manner. While it is crucial for businesses to determine their obligation towards VAT registration, it is also important for businesses to know how to apply for VAT Registration and understand the level of details required to complete the online registration process.
This is because, before applying or starting the online VAT registration process, having a good understanding about the type of details required and steps to complete the online VAT registration will help you to prepare well in advance. As a result, the registration process can be completed easily and can avoid unnecessary delays due to furnishing incorrect details which could even lead to rejection of registration application.
The creation of an e-Service account in Dubai involves registering for an online account that provides access to various government services and transactions. This account can be created by visiting the Dubai government’s official website and following the registration process, which typically involves providing personal information, creating login credentials, and verifying one’s identity. Once the e-Service account is created, individuals can use it to access a range of online services, such as renewing visas, paying fines, and applying for permits.
Logging in to your e-Service account involves accessing the account you previously created on the Dubai government’s official website. To log in, you typically need to provide your username or email address, as well as your password. Once you have entered your login credentials, you will be directed to your e-Service account dashboard, which provides access to various government services and transactions that are available online. From there, you can navigate to the specific service or transaction you need, and complete the necessary steps to carry out the task you require.
- About the applicant
- Details of the applicant
- Contact details
- Banking details
- Business relationships
- About the VAT registration
- Declaration
- Review & submit
WHAT IS VAT?
VAT or value-added tax, is a common form of indirect tax levied on services and goods. It is paid to the government by the producers at every stage in the supply chain. VAT tax is applicable only on goods sold within a particular state, which means that the buyer and the seller need to be in the same state.
VAT IS APPLICABLE TO ?
VAT applies equally on tax-registered businesses managed on the UAE mainland and in the free zones. However, if the UAE Cabinet defines a certain ‘Free zone as a designated zone’, it must be treated as outside the UAE for tax purposes. The transfer of goods between designated zones are tax-free.
WHY VAT IN UAE?
UAE imposes VAT on tax registered businesses on a taxable supply of goods or services at each step of the supply chain. VAT registered businesses collect the amount on behalf of the government; consumers bear the VAT in the form of a 5% increase in the cost of taxable goods and services they purchase in the UAE.