VAT Registration

VAT or Value-added Tax is a sort of indirect tax practiced in 160 nations throughout the globe. To be more specific, value-added tax is a system of taxes placed on the consumption of various commodities, goods, and services. It is a consumption tax and has nothing to do with the taxpayer’s income. This taxation scheme is prevalent across the European Union. In the beginning of 2018, the UAE and GCC countries implemented VAT. The VAT rate in the UAE and other GCC nations is 5%. As the term implies, the value of a product or commodity is raised or added during the various steps of the supply chain. And this value addition occurs from the manufacturing stage through distribution and sales. In Dubai, United Arab Emirates, all firms, irrespective of their industry or size, must register for VAT.

If you are an entrepreneur looking to extend your business to the Emirates or a business owner in the UAE, you need have a firm grasp of VAT registration in UAE. The Emirates Professional Business Centre offers comprehensive VAT registration services throughout the Emirates.

VAT registration requirements for companies:

There are special registration requirements for VAT in Dubai, UAE. The requirements are determined by the business’s income.
Companies can depend on the three income generating criteria to choose whether or not to register for VAT.
Companies who sell taxable products or services and generate more than AED 375,000 in annual revenue must register for VAT.
VAT registration is optional for businesses that supply taxable goods or services and generate an annual revenue of less than AED 375,000 but more than AED 187,500. This category is subject to optional registration.
Companies that sell taxable goods or services and generate an annual revenue of less than AED 187,500 are exempt from registering for VAT.

Documents required for VAT Registration:

When registering for VAT Registration in Dubai and the UAE, you must have the following documents available:

MOA of the business establishment
Owner’s and partner’s Emirates ID (copy)
Trade license of the business (copy)
Owner’s and partner’s passport (copy)
Contact information of the company
Category of business and information regarding the activities conducted
Information regarding bank account
The latest annual income statement

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