Who Is Required to Register for UAE VAT?
VAT in the UAE is an indirect tax imposed on the consumption of goods and services within the country. Essentially, it’s a 5% tax added to the price of taxable supplies, collected by registered businesses and remitted to the Federal Tax Authority (FTA).
UAE VAT registration is required for:
UAE VAT Registration is required for the Businesses who have a physical presence in the UAE and their value of supply in the member countries exceeded AED 375,000 in the previous year. In addition, in the event that a business anticipates that its total supply value will exceed the AED 375,000 statutory registration limit in the next thirty days, it must do UAE VAT registration.
UAE VAT Registration is done on a voluntary basis.
All businesses operating in the United Arab Emirates will have the option to voluntarily register for the tax if they so desire, regardless of whether they are required to do so. For voluntary registration to be allowed in this specific case, the taxable expenses or annual supplies must exceed the voluntary registration cost. Currently, fifty percent of the required sum for statutory registration is equal to the AED 187,500 required for voluntary registration.
Businesses are allowed to decide whether or not to register, and voluntary participation is not required in this nation. The United Arab Emirates Value Added Tax is now available for voluntary registration by all newly founded businesses as a result of the inclusion of taxable costs as a criterion for determining eligibility. This is because there is a good chance that a sizeable amount of taxable expenses were incurred in the process of starting the business or in the early stages of operation, even though the turnover or value of supplies may be lower when the company is first created.
The reasoning behind this is that even though the firm’s initial supply value or turnover may be lower, there’s a strong likelihood that these expenses were incurred. Therefore, all new enterprises may register, even if they generated no money at all, if taxable charges were added as one of the requirements for voluntary registration.
Exemption from the requirement to register for VAT
Companies are not allowed for UAE VAT Registration in the first place if their total value of supplies in member countries is less than the AED 187,500 voluntary registration threshold. Moreover, businesses that only produce zero-rated goods are eligible to petition for exemptions from the UAE VAT registration obligation.
How IBR Group can help you in UAE VAT Registration?
Do you find UAE VAT registration to be too much to handle? IBR Group can streamline the procedure for your company in Dubai. To make sure your application satisfies Federal Tax Authority (FTA) regulations, our professionals handle all the documentation. Whether you’re a brand-new business or have more than AED 375,000, we can effectively advise you. Let IBR Group handle the complexities of your VAT registration so you can concentrate on what really matters—managing your business. We provide a full range of VAT services, including continuous VAT Registration, Deregistration, VAT Return filing , refund , audit and record-keeping, to ensure your compliance all year long. Entrust your UAE VAT registration process to IBR Group, and let them be your reliable partner.