Value-Added Tax which is referred to as VAT was levied on various goods and services in Dubai by the UAE authorities. This tax excludes essential basic items like healthcare, food, and education. Around 5% of the VAT was introduced on goods and services in 2018. A specific set of documents needs to be submitted for the commencement of the VAT registration process in Dubai. VAT registration is mandatory if your company’s annual income exceeds AED 375,000. The Dubai government is very strict based on rules and regulations related to the VAT registration process.

This article will guide you through all the steps related to VAT registration requirements in Dubai, the documentation needed, Tax group registration, and more.

Types of VAT Registration Services in Dubai

Depending on the taxable income, the government of Dubai applies two types of VAT Registration Services:

Voluntary VAT Registration

The company whose annual profits range between AED 187,500 to AED 375,000 are not bound to apply for VAT Registration. The government of Dubai does not impose fines on any of the companies whose annual profits are below AED 375,000. These entities have the option not to opt for registration for VAT. But if a company wants to apply for VAT registration, they can and this service will provide them with a Tax Registration Number (TRN).

Mandatory VAT Registration

There is an obligation for companies that exceed the annual turnover of AED 375,000 to get registered for VAT. To avoid any legal indulgence and make sure the business operations are running smoothly, it ensures obtaining a TRN. For the application for VAT in Dubai, the tax registration number (TRN) is a must to have.

Documents Required to Apply for VAT Registration in Dubai

Documents are an essential part of the VAT registration requirement in Dubai. Without proper documents and identity proofs, one can not apply for the VAT registration process. Following is the list of documents without which the VAT registration process would not be possible :

A passport copy and Emirates ID are a must for identification proof.
Official documents for recognition of individuals' identity so that they can conduct further activities in Dubai.
A clean copy of the company’s trade license.
Expected turnover ratio in the next 30 days
Certificate of incorporation, AOA(Article of Association), and power of attorney

Types of business activities
Supporting documents for 12-month sales.
Value of estimated exports for 1 year to each GCC country.
Value of estimated imports for 1 year from each GCC country.

Steps to Apply for VAT Registration in Dubai

VAT Registration Services in Dubai has some crucial steps to be followed. Each step needs to be followed wisely while registering for VAT. It is very much crucial to make oneself aware and familiar with the application procedure of VAT. Let’s learn more about the steps involved :

Step 1: The government provides an e-services portal on which there is a need to register, to begin with the VAT registration process.

Step 2: Once, logged in, you will find an online VAT registration form where you need to fill in contact details, information about the company, and also banking information.

Step 3: Enter all the significant details regarding VAT registration. Also, declare any kind of business relationships previously pertinent before the application.

Step 4: After, putting all the details of the company, click on the “Submit” button to finalize your VAT registration service application.

Registration of Tax Group in Dubai

Keeping in mind the rules and regulations, only the representative company has the power and right to apply for tax group registration to form a tax group in Dubai. The company initially should have a Tax Registration Number (TRN) or need to submit application of VAT registration.

For each member to join the tax group, the following criteria need to be followed

Should be a resident of UAE and should comply with all the regulations related to residence.
The member should not play any role in any other existing tax group.
The UAE law needs to consider the member as a legal entity.

Deregistration for VAT in Dubai

Companies can consider deregistration of VAT if necessary. Also, it is important to keep in mind that if the company has registered voluntarily for the VAT, it must stay registered for a minimum of 12 months before applying for deregistration.

Deregistering of VAT can be done under the following situations :

If your company stops making taxable supplies
If the annual turnover and supplies drop under the voluntary threshold
Deregistration becomes an important step if you do not predict the supplies of the next 30 days crossing the given voluntary registration criteria.

Good support and guidance from a registration company can make a big difference. Tax innovex also makes it simpler by avoiding any complications and legal indulgence of authorities.

VAT Registration Services in Dubai

Vat Registration Requirements in Dubai