Looking for Simple and Swift VAT Registration in UAE?
Are you conducting taxable supplies without VAT registration? Or maybe you are at risk of crossing VAT thresholds? If yes, it’s time to understand the penalties and reduce the impacts with Now Consultant team.
Worried About Compliance and Penalties?
Let’s Leave it to Us!
Want to make the most of your VAT registration? We’ve got your back when it comes to VAT registration. We have a super-friendly team of experts who make the whole process a breeze for your unique business.
We’ll guide you through every step, keep you compliant with the latest rules, and have your back with ongoing support. No need to stress about fines and penalties – we’ve got you covered! Reach out today, and let’s secure a bright financial future for your business.
How to Register for VAT Registration in the UAE?
At Now Consultant, our team guides you through the actual process of registering for VAT in the UAE. Don't worry; it's not as complicated as it may seem!
Creating Your e-Services Account
We offer step-by-step assistance in setting up your e-Services account – which is your gateway to all things VAT in the UAE.
Filling in the Registration Form
After that, we help you break down the registration form, field by field, to ensure you provide accurate and complete information.
What Happens
Next?
Once you submit hit, what do you expect? We'll further walk you through the post-registration phase and offer ongoing support and assistance.
Types of VAT Registration
There are two types of VAT registration in the UAE
1. Mandatory VAT Registration:
Mandatory registration is required for businesses whose taxable supplies and imports exceed AED 375,000 per year. This threshold applies to both resident and non-resident businesses in the UAE. If a business fails to register for VAT, it may face penalties and fines.
2. Voluntary VAT Registration:
Voluntary registration is an option for businesses whose taxable supplies and imports are below the mandatory registration threshold, but still wish to register for VAT voluntarily. Voluntary registration may be beneficial for businesses that deal with zero-rated supplies or that wish to reclaim VAT on their expenses.
It is important for businesses to ensure that all the required documents are accurate and up-to-date before submitting them for VAT registration. Failure to provide accurate information or documents may lead to delays in the registration process or even fines and penalties.
Importance and Implementation of VAT in the UAE:
The United Arab Emirates (UAE) implemented VAT in January 2018, making it mandatory for businesses operating in the country to register for VAT.
This was a significant move for the UAE, as it marked a shift from its traditional tax-free economy to a tax-based system.
VAT registration services in Dubai assist businesses in complying with the VAT laws and regulations.
These services are designed to help businesses complete the VAT registration process, understand the registration requirements and procedures, comply with VAT regulations, maintain accurate records, calculate and pay VAT, file VAT returns, and more.
With the help of VAT registration, businesses can avoid penalties and fines and ensure compliance with the latest VAT regulations.
Perks of VAT Registration in the UAE
Congratulations, you're now a VAT-registered business! Have a look at the few advantages that come with VAT registration.
Enhanced Business Credibility
Being VAT-registered enhances your business's credibility and authority in the eyes of customers and partners.
Reclaiming Input Tax
You can now unlock the potential to reclaim VAT on your business expenses – a game-changer for your bottom line.
Stay Compliant and Avoid Penalties
VAT registration keeps you on the right side of the law, ensuring compliance and avoiding hefty penalties.
Documents Required for VAT Registration:
1. Trade License
A copy of the trade license issued by the Department of Economic Development (DED) or any other regulatory authority in the UAE.
2. Emirates ID
A copy of the Emirates ID of the authorized signatory and the manager or owner of the business.
3. Passport Copy
A copy of the passport of the authorized signatory and the manager or owner of the business.
4. Bank Account Details
The bank account details of the business, including the account number and IBAN.
5. Financial Statements
The financial statements of the business for the previous 12 months, including the profit and loss statement, balance sheet, and cash flow statement.
6. Business Premises Details
Details of the business premises, including the lease agreement or title deed, and the location of the premises.
7. Customs Registration Details:
If the business is engaged in importing or exporting goods, then the customs registration details are also required.
Businesses need to ensure that all the required documents are accurate and up-to-date before submitting them for VAT registration. Failure to provide accurate information or documents may lead to delays in the registration process or even fines and penalties.
VAT Penalties in the UAE
Do you know what happens when you don’t register for VAT in the UAE? Or if your company is late to register, you might have to pay a fine of AED 10,000. If you don’t pay taxes on time, there are more penalties:
● The day after the due date, there's a 2% penalty on the unpaid tax.
● Starting from the next month, there's a 4% penalty on any remaining unpaid tax each month.
● If payment is still delayed, there could be a maximum penalty of 300% each month after the deadline.
Factors You Need to Consider While Supplying Data for VAT Registration Purposes
Have a look at a few significant factors that might prove helpful before registering for VAT in the UAE:
● When your company registers for VAT as a stand-alone entity, you can submit data about one of its bank accounts in the United Arab Emirates.
● The entity should always submit necessary information such as the bank’s name, branch’s name, account title, and so on.
● If two or more entities seek to register for VAT as a group, then the data of the two entities’ single bank accounts would be served.
What Makes Us the Best Choice?
Experience
Our team of consultants has years of experience in VAT registration and compliance. We have helped numerous businesses in the UAE to register for VAT, ensuring that they comply with the regulations and avoid any penalties or fines
Tailored Approach
we provide a tailored approach to each client's VAT registration needs. We take the time to understand your business and its operations, and we provide customized solutions to ensure compliance with VAT regulations.
Competitive Pricing
We offer transparent and competitive pricing for the registration of VAT numbers, We believe that quality service should not come at an exorbitant cost, and we strive to keep our prices reasonable without compromising on the quality of our service.
Customer Care
We pride ourselves on providing exceptional customer service. Our team is always available to answer any questions or concerns you may have, and we provide regular updates throughout the VAT registration process.
Businesses on Which VAT Applies
Amazon Sellers
Amazon sellers who operate in the UAE and exceed the mandatory registration threshold are also required to register for VAT. We provide VAT registration services for Amazon sellers and help them navigate the complex VAT regulations.
LLC's
Limited Liability Companies (LLCs) are required to register for VAT in UAE if their taxable supplies exceed the mandatory registration threshold of AED 375,000 per annum. At Now Consultant, we offer white-glove services for registration of VAT numbers for LLCs.
Local Businesses
All local businesses in UAE that exceed the mandatory registration threshold are required to register for VAT. Our VAT registration services are available to all local businesses, and we ensure that they comply with the VAT regulations and avoid any penalties or fines.
Foreign Businesses
Foreign businesses that have a taxable presence in the UAE are also required to register for VAT. Our VAT registration services are available to foreign businesses, and we ensure that they comply with the VAT regulations and avoid any penalties or fines.
See What Makes Our Clients Happy?
Frequently Asked Questions
What are the VAT rates in the UAE?
In UAE, there are two VAT rates: the standard rate and the reduced rate.
- Standard VAT Rate:
The standard VAT rate in the UAE is 5%. This rate applies to most goods and services that are subject to VAT. The standard rate applies to all taxable supplies unless they are specifically listed as exempt or zero-rated.
- Reduced VAT Rate:
The reduced VAT rate in UAE is 0%. This rate applies to specific goods and services that are listed as zero-rated supplies. Zero-rated supplies are those that are taxable at a rate of 0%, which means that no VAT is charged on these supplies
Who needs to register for VAT in the UAE?
Businesses with taxable supplies and imports exceeding AED 375,000 or those expecting to exceed this threshold within the next 30 days must register for VAT.
Is VAT registration mandatory for all businesses in the UAE?
No, certain businesses might be exempt from mandatory registration, but it’s essential to assess eligibility based on specific criteria.
How long does it take to complete the VAT registration process?
The process typically takes around 20 business days, but the timeframe may vary based on the completeness of documentation and other factors.
Can I apply for VAT registration online, and what is the process like?
Yes, the online application process involves creating an e-Services account, filling out the registration form, and submitting the required documents electronically.
What is the new VAT rule in Dubai?
The new VAT rule in Dubai, effective from 1st January 2022, mandates the use of digital tax invoices and electronic self-billing for VAT-registered businesses. Failure to comply with this rule can result in penalties and fines. Therefore, businesses need to register for VAT and stay updated on the latest regulations to avoid such consequences.
Who Is Eligible to Register for VAT In UAE?
A business must register for VAT if its taxable imports and supplies total AED 375k (USD 1k) or more. Businesses with taxable imports and supplies between AED 187.5k and AED 375k may voluntarily register for VAT. Businesses with taxable supplies and imports less than AED 187k are not required to register for VAT.
How often do I need to renew my VAT registration, and are there any renewal fees?
VAT registration is generally valid for 12 months and can be renewed online. There are no specific renewal fees, but businesses must ensure continuous compliance.
