Value added tax
What is VAT?
VAT Registration
Value Added Tax (VAT) Registration in Dubai, like in many other countries, is a mandatory requirement for businesses that meet certain criteria.
Determine Your Eligibility
Not all businesses are required to register for VAT in Dubai. Your business must meet certain criteria, including:
- Your taxable supplies and imports exceed or are expected to exceed AED 375,000 over the next 12 months
- Your taxable supplies and imports exceed or are expected to exceed AED 187,500 over the next 30 days.
Prepare Required Documents:
To register for VAT in Dubai, you typically need to provide the following documents:
Trade license and any other business-related licenses.
Emirates ID and passport copies of the business owner(s).
Proof of business address (e.g., lease agreement).
Company Bank Account details.
Online Registration:
VAT registration in Dubai is done through the Federal Tax Authority (FTA) online portal. You need to create an account on the FTA portal and complete the registration process. This includes providing the necessary information about your business and uploading the required documents.
VAT Registration Certificate:
After submitting your application, the FTA will review it. If everything is in order, they will issue a VAT registration certificate on your registered email address or you can download it from the FTA portal. This certificate will indicate your VAT registration number.
Compliance Requirements:
Once registered, you have certain compliance requirements, including:
Charging the appropriate VAT rate on your taxable supplies.
Filing regular VAT returns, typically on a quarterly basis.
Maintaining proper records of your business transactions for at least five years.
VAT Returns:
Companies will need to file VAT returns with the FTA according to the prescribed schedule. This involves reporting your company’s taxable sales and purchases and paying any VAT liability that may arise.
VAT Rates:
The Standard VAT rate in the UAE, including Dubai, is 5%. However, certain goods and services may be subject to a 0% rate or may be exempt from VAT.
Please note that tax regulations can change, and it’s important to stay updated with the latest information from the Federal Tax Authority or consult with a Professional in Dubai to ensure compliance with current VAT requirements.