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simplysolvedagency · 1 year

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UAE VAT Registration in 2021 – A Step-by-Step Guide

Since the UAE introduced the VAT on Value Added Tax (VAT) on January 1st, 2018, business owners are required to follow the rules, including UAE VAT Registration and tax filings.

Companies operating in the UAE must ensure that VAT is correctly collected and properly accounted for so that it can be paid back to Federal Tax Authority (FTA).

UAE VAT Registration means that your business is recognized by government authorities to take VAT from your customers and then transfer this to the government.

As a business owner, you must be aware of the critical aspects of VAT in the UAE.

These are step-by-step guides.

What is VAT?

Taxes on VAT are applied to the exchange of services and goods. It that is used at every stage in the chain of supply. It is calculated based on the value added at each step. This indirect tax is imposed on the Government of UAE at 5 percent on most businesses and products. However, food, education, and healthcare items are exempt from VAT.

VAT Registration UAE

If you need to declare VAT depends on your business’s turnover per year.

Exclusive from Registration for VAT Value of supplies that are less than Dh187,500

Voluntary UAE VAT Registration, The value of reserves is between Dh187.500 to Dh375,000.

Mandatory VAT Registration Value of supplies above Dh375,000

Your registered business will receive a unique tax identification number (TRN) when the UAE VAT registration is accepted. The VAT invoices on all VAT invoices will include the TRN.

UAE mainland businesses, as well as free zone companies, are taxed on VAT. The only ‘designated zones’ designated by Cabinet members of the UAE Cabinet are outside the scope of UAE VAT taxation. Moving goods within areas are free of tax.

It typically takes between 3 and 5 days for the tax registration process to complete.

VAT Return Filing

VAT-registered companies (taxable individuals) are required to submit an annual VAT return to the FTA.

A VAT return is a summary of the supplies and purchases that a tax-paying person makes during tax time to calculate the tax liability of VAT.

You can file your VAT return online every month or every quarter by visiting FTA’s official website – https://www.tax.gov.ae/.

Tax returns should be filed on time, usually by the 28-day deadline. The tax period is the time in which taxes are due and due. The tax period:

* Monthly for businesses with annual revenue of Dh150 million or greater. * Quarterly rate for companies with an annual turnover of less than Dh150 million

VAT Liability

In contrast to customer business revenues, VAT is not part of your company’s income. Instead, the VAT you collect is known as VAT liability & has to be paid to the government of the UAE.

Vat liability is the gap between the output tax to be paid (VAT applied to supplies of services and goods) and the tax on input (VAT incurred when purchasing) which is recoverable for a specific tax time.

If output taxes are more significant than input taxes, the excess must be paid to FTA. However, if there is an excess of output tax and input tax, the taxable person can recuperate the quantity and apply it to future payments to FTA.

Documents Required for VAT Registration in UAE

You must provide duplicates of these documents to register for UAE VAT Registration.

Certificate of registration or incorporation.

Trade license

Passport and visa, or Emirates ID of director/manager

A partnership contract, memorandum association, or another document that provides information on the business’s ownership.

The profile of the named company director.

Bank account details;

Contact details;

Physical office;

List of business directories or partners in the UAE over the last five years

The Federal Tax Authority would also need to declare the following:

The actual or estimated value of transactions in the financial sector;

The registered business activities of the applicant;

Information on the anticipated turnover of the company over the next thirty days;

The turnover of the business over the last 12 months (supporting documents are required);

Information about the business’ anticipated exempt supply;

All details about the business exports and imports of the company;

Information on the customs registration process;

The business activities that take place in the GCC

The taxpayer or VAT-registered company is also required by the tax authorities to maintain the following records/documents:

Tax invoices and any other document pertinent to the receipt of the goods or services you need;

Notes on the tax credit, in addition to any other documents that the company receives about the purchasing of products or services

Record of tax-deductible products received or manufactured;

Tax invoices and any other document that is the issue concerning products or services;

Notes on the tax credit and any other type of document issued to purchase items or services

Documents of services or goods that are disposed of or used by the company to deal with matters not connected with the business, as in the tax paid for these;

Record of the imports and supply of goods or other products;

Documents of corrections or adjustments applied to tax invoices or any other account

Record of products or goods which are shipped to another country

Tax records must be kept by any tax-paying individual and include the following details:

Taxes that can be recovered on imports or supplies;

Tax recoverable subsequent adjustment or correction of error;

Tax due following adjustment or error correction

Taxes owing on all tax-deductible products

UAE VAT Registration Process

If you have your soft copies of the previously mentioned documents in hand, you’re in good shape to begin the registration procedure.

First of all,

FTA (Federal Tax Authority) authorized e-service account is required to register VAT. However, it is easy to create an account through their official site.

VAT Rates in UAE

The rates of VAT in the UAE differ from product to product. The standard rate of the government is 5%, and you should charge this amount unless your product or service is in”zero-rated,” or “zero-rated” or VAT exemption.

Zero-rated rates are available on tax-exempt products; however, the buyer is not liable for VAT. Your VAT account must record and report the VAT zero-rated transactions, too.

Certain goods and services, including the construction of residential structures and land and financial services, are exempt from VAT.

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saifchartered123 · 8 months

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Understanding UAE VAT Registration: A Comprehensive Guide

A Tax Audit, or VAT audit, is a government assessment of a company's compliance with tax laws to ensure accurate VAT liability by examining maintained records and adherence to tax regulations.

#UAE VAT Registration #VAT Compliance #Tax Audit Process #Tax Laws in UAE #VAT Liability Assessment

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sabauditing · 1 year

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What is TRN Number in UAE? How to Get It?

The TRN (Tax Registration Number) is a unique identifier assigned to businesses and individuals registered for VAT (Value Added Tax) in the United Arab Emirates (UAE). To obtain a TRN number in the UAE, you need to visit the Federal Tax Authority (FTA) website, create an account, and fill out the online registration form with your business information. You will also need to provide the necessary documents, such as your Emirates ID, passport copy, trade license, and bank account information. The FTA will review your application, and if everything is in order, they will issue you a TRN number. It's important to note that businesses with an annual turnover exceeding AED 375,000 must register for VAT.

The TRN (Tax Registration Number) is a unique identification number issued by the tax authorities to businesses and individuals registered for VAT (Value Added Tax). It is an essential requirement for businesses and individuals to carry out their VAT-related transactions in the UAE. For businesses, the TRN is necessary for various purposes such as invoicing, filing VAT returns, and claiming input tax credits. Without a valid TRN, a business cannot issue tax invoices to its customers, which can result in penalties and legal consequences. Furthermore, businesses must ensure that their TRN is displayed on all their invoices, receipts, and other related documents, as failure to do so can result in fines and penalties.

For individuals registered for VAT, the TRN is important because it allows them to claim input tax credits on eligible expenses incurred during their business. The input tax credit is a mechanism by which businesses can claim back the VAT paid on purchases and expenses related to their business activities, thereby reducing their overall VAT liability.

Steps to obtain TRN Number in UAE:

Obtaining a TRN (Tax Registration Number) in the UAE is a straightforward process. Here are the steps you need to follow to obtain a TRN number:

Determine whether you are eligible for VAT registration: Businesses and individuals must register for VAT if their taxable supplies and imports exceed AED 375,000 per year.

Gather the required documents: The following documents are required for VAT registration:

Trade license

Emirates ID (for individuals)

Passport copy (for non-residents)

Tenancy contract or title deed (proof of physical presence in the UAE)

Bank account details

Submit the registration application: The registration application can be submitted online through the Federal Tax Authority (FTA) website. You will need to provide your personal and business details, including your TRN (if applicable).

Await approval: Once you have submitted your application, the FTA will review your application and may request additional information or documentation. If your application is approved, you will receive a TRN number.

Display the TRN number: Once you have obtained a TRN number, it must be displayed on all invoices and other VAT-related documents.

Why do you need TRN in UAE:

The TRN (Tax Registration Number) is a unique identification number that is assigned to businesses and individuals registered for VAT (Value Added Tax) in the UAE.

Here are some reasons why you need a TRN in the UAE:

Legal requirement: VAT registration and obtaining a TRN is a legal requirement for businesses and individuals whose taxable supplies and imports exceed AED 375,000 per year. Failure to obtain a TRN can result in penalties and legal consequences.

Invoicing: Businesses must include their TRN on all invoices, receipts, and other VAT-related documents. Failure to do so can result in fines and penalties.

Filing VAT returns: Businesses must file VAT returns on a regular basis, and the TRN is used to identify the taxpayer when submitting VAT returns to the tax authorities.

Claiming input tax credit: Businesses that are registered for VAT can claim the input tax credit on eligible expenses incurred during their business activities. The TRN is used to identify the business when claiming the input tax credit.

Compliance: Compliance with the VAT laws and regulations is essential for businesses and individuals to avoid penalties and legal consequences. The TRN is a critical component of the VAT system in the UAE and plays a vital role in ensuring compliance.

The TRN is an essential requirement for businesses and individuals registered for VAT in the UAE. It is used for various purposes, including invoicing, filing VAT returns, claiming an input tax credit, and ensuring compliance with tax laws.

Benefits of TRN in UAE:

The TRN (Tax Registration Number) is a unique identification number that is assigned to businesses and individuals registered for VAT (Value Added Tax) in the UAE. Here are some benefits of having a TRN in the UAE:

Compliance: The TRN is an essential component of the VAT system in the UAE, and having a TRN ensures compliance with tax laws and regulations.

Input tax credit: TRN is used to identify the taxpayer when claiming input tax credit on eligible expenses incurred during business activities. This can help businesses to reduce their overall VAT liability and improve cash flow.

International trade: Having a TRN is often a requirement for businesses engaged in international trade to comply with the VAT laws and regulations of other countries.

Legal protection: The TRN provides legal protection for businesses and individuals registered for VAT by enabling them to prove that they are compliant with the tax laws and regulations.

Invoicing: Businesses must include their TRN on all invoices, receipts, and other VAT-related documents. This helps to ensure that the correct amount of VAT is charged and paid.

Credibility: Having a TRN can enhance the credibility of a business and make it more attractive to potential customers and partners.

Simplified VAT procedures: TRN holders can benefit from simplified VAT procedures, such as faster VAT refunds and reduced paperwork.

The TRN is a critical component of the VAT system in the UAE and offers several benefits to businesses and individuals. These benefits include compliance, input tax credit, legal protection, international trade, invoicing, credibility, and simplified VAT procedures.

Requirements for VAT registration in UAE:

Businesses and individuals must meet certain requirements to register for VAT (Value Added Tax) in the UAE.

Here are the general requirements for VAT registration in the UAE:

Threshold limit: Businesses and individuals must register for VAT if their taxable supplies and imports exceed AED 375,000 per year. Businesses that do not exceed this threshold may choose to register voluntarily.

Physical presence: To register for VAT, businesses must have a physical presence in the UAE. This can be demonstrated through a tenancy contract or title deed.

Eligibility: Not all businesses are eligible for VAT registration. For example, businesses that engage in exempt supplies may not need to register for VAT Services in UAE.

Required documents: The following documents are required for VAT registration:

Trade license

Emirates ID (for individuals)

Passport copy (for non-residents)

Tenancy contract or title deed (proof of physical presence in the UAE)

Bank account details

Compliance: Businesses must ensure that they comply with all VAT-related requirements, such as filing VAT returns and maintaining proper records.

It is important to note that certain businesses may have additional requirements for VAT registration. For example, businesses engaged in certain activities, such as the import and export of goods, may need to obtain additional licenses or permits. Additionally, businesses that are part of a VAT group or a tax group may have different registration requirements.

Why do we Need VAT Registration in UAE:

There are several reasons why businesses and individuals need VAT (Value Added Tax) registration in the UAE:

Legal requirement: VAT registration is a legal requirement for businesses and individuals whose taxable supplies and imports exceed AED 375,000 per year. Failure to register can result in penalties and legal consequences.

Compliance: VAT registration ensures that businesses and individuals comply with the tax laws and regulations in the UAE.

Input tax credit: VAT registration allows businesses to claim the input tax credit on eligible expenses incurred during their business activities. The input tax credit is a mechanism by which businesses can claim back the VAT paid on purchases and expenses related to their business activities, thereby reducing their overall VAT liability.

Increased credibility: VAT registration can enhance the credibility of a business and make it more attractive to potential customers and partners.

International trade: VAT registration is often required for businesses engaged in international trade to comply with the VAT laws and regulations of other countries.

Business growth: VAT registration can help businesses to grow and expand their operations by allowing them to claim input tax credits, which can improve their cash flow and reduce their overall VAT liability.

VAT registration is an essential requirement for businesses and individuals operating in the UAE. It can help to ensure compliance with tax laws and regulations, provide access to the input tax credit, enhance credibility, and support business growth.

Benefits of VAT Registration in UAE:

Value Added Tax (VAT) is a consumption tax that is levied on the sale of goods and services in the UAE. VAT registration is mandatory for businesses and individuals whose taxable supplies and imports exceed AED 375,000 per year. While VAT registration may seem like a daunting task, there are several benefits to registering for VAT in UAE.

One of the primary benefits of VAT registration is legal compliance. By registering for VAT, businesses and individuals can avoid legal penalties and fines for non-compliance with the tax laws and regulations of the UAE. VAT registration also allows businesses and individuals to claim input tax credits on eligible expenses incurred during their business activities. This can help to reduce the overall VAT liability and improve cash flow. VAT registration is often a requirement for businesses engaged in international trade to comply with the VAT laws and regulations of other countries. Registering for VAT can also enhance the credibility of a business and make it more attractive to potential customers and partners.

VAT registration can also help businesses to increase their revenue by providing access to a wider customer base and by allowing them to claim the input tax credit on eligible expenses. It can improve cash flow by allowing businesses to claim the input tax credit on eligible expenses and by providing access to faster VAT refunds in UAE.

Finally, VAT registration can help to simplify VAT procedures and reduce paperwork by allowing businesses to file their VAT returns online. This can save businesses time and resources, allowing them to focus on other important aspects of their business. VAT registration is essential for businesses and individuals operating in the UAE. It can help to ensure legal compliance, provide access to the input tax credit, enhance credibility, increase revenue, improve cash flow, and reduce paperwork.

Why you Choose SAB:

SAB has a team of qualified and experienced professionals who can assist businesses and individuals with the TRN registration process. They are familiar with the latest laws and regulations related to VAT in the UAE and can provide guidance on compliance requirements.

In addition to TRN registration, SAB offers a range of other services, including accounting, auditing, VAT consulting, and business advisory services. They have a reputation for providing high-quality services to their clients and have helped numerous businesses and individuals in the UAE with their VAT and accounting needs.

Overall, if you are looking for professional assistance with TRN registration or other VAT-related services, SAB may be a good choice for you to consider.

Conclusions:

A TRN (Tax Registration Number) is a unique identifier that is assigned to businesses and individuals registered for VAT in the United Arab Emirates (UAE). To obtain a TRN number, one must visit the Federal Tax Authority (FTA) website, create an account, fill out the online registration form with their business information, and provide the necessary documents. It's important to note that businesses with an annual turnover exceeding AED 375,000 must register for VAT, and failure to do so may result in penalties and fines. Therefore, it's crucial for businesses to comply with VAT registration requirements to avoid any legal and financial consequences.

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thevatconsultantblog88 · 1 year

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Are You Looking for VAT Registration UAE ? Registration of VAT, Online VAT Registration, VAT Registration Dubai, VAT Registration form UAE. Contact us.

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uae-vat-registrationblog88 · 1 year

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We are a VAT & Tax Consulting firm in the UAE, which provide services like VAT Registration, VAT Registration UAE, VAT Registration Dubai, UAE VAT Registration.

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#uae vat registration

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vatdubaiud0blog · 1 year

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VAT Registration Process in Dubai | Documents & Information Required

There are many reasons why you should register for UAE vat registration, even if your business turnover is below the mandatory registration threshold. Here are some of the benefits of registering for VAT:

-You can claim back any VAT paid on goods and services used for your business. This can save your business a significant amount of money.

-VAT registration can make your business look more professional and credible to customers and suppliers.

-As a VAT registered business, you can supply VAT invoices to your customers which can help them with their own VAT accounting.

What is VAT Certificate in UAE?

The VAT Certificate is a document that confirms your registration with the Federal Tax Authority (FTA). It contains your Tax Registration Number (TRN) as well as the period for which you are required to file your tax returns. This certificate is necessary in order to ensure that you are complying with your tax obligations. If you have any questions or need assistance in obtaining your vat registration uae, please do not hesitate to contact our team of experts. We would be more than happy to help you out.

Can individual register for VAT in UAE?

Yes, an individual can operate as a sole trader or as a legal person. Other forms of entity, such as an unincorporated body, a partnership, or a trust, can also be used.

However, there are some restrictions on what types of business can be operated as a sole proprietorship. For example, businesses that require a license, such as a business that sells alcohol, cannot be operated as a sole proprietorship. Legal persons, on the other hand, can operate any type of business. However, they must follow the rules and regulations set forth by the government in their country of operation.

#uae vat registration

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vatdubai26 · 2 years

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Documents required for VAT registration in Dubai?

What is VAT Registration?

VAT Registration is the process of registering for value added tax with the UAE government. This is required for businesses that intend to sell taxable goods or services in the UAE. The registration process typically includes submitting an application along with supporting documentation, and paying the applicable fees. Once registered, businesses will be issued a VAT registration number which must be included on invoices and other required documentation.

Businesses must ensure that they comply with all VAT requirements in order to avoid penalties or fines. These requirements include maintaining accurate records, filing regular VAT returns, and making timely payments. Non-compliance can result in significant financial penalties, so it is important to ensure that you are up-to-date on all requirements.

Documents Required for VAT Registration in Dubai, UAE

To get the Tax Registration Number (TRN), businesses must submit all the documents required for VAT Registration. For online VAT registration, the following are the documents required for vat registration uae:

1. Business activity license or certificate of incorporation

2. Passport and Emirates ID of the business owner(s)

3. Memorandum and Articles of Association (MAA)

4. Detailed company profile

5. Bank statement or utility bill for proof of address

6. Trade name registration certificate

7. UAE vat registration application form duly completed and signed

8. Authorized signatory declaration form

9. Power of Attorney, if applicable

10. Certificate of Good Standing, if applicable

11. Residency visas of the business owner(s), if applicable

Once all the required documents are submitted, businesses will be issued a Tax Registration Number (TRN), which must be quoted on all invoices issued by the business. The TRN is valid for one year and must be renewed annually.

#uae vat registration

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masarca · 10 months

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simplysolveduae · 1 year

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Steps And Requirements VAT Registration In UAE

Under the value-added tax (VAT) system implemented on January 1, 2018. UAE VAT registration is mandatory for businesses with annual revenue exceeding AED 375,000 ($102,000).

Registration to the FTA requires a sound basis for the registration, preparation of the necessary evidence, and documentation to proceed without delays or issues. Therefore preparation and planning are key to minimising issues, potential risks, and penalties.

Here are the steps and requirements for VAT registration in the UAE:

1. Determine your business’s eligibility for VAT registration.

To determine your business’s eligibility for VAT registration, you need to consider the following:

Taxable Income: If your business has revenue exceeding AED 375,000, you must register for VAT calculated on a rolling basis, including the preceding 11 months and the next 30 days.

Type of business: All businesses operating in the UAE must register for VAT except for a few exceptions. These exceptions include businesses that are exempt from VAT, such as the sale and supply of some financial and insurance services

Location of business: Businesses operating in the UAE, regardless of location, must register for VAT if they meet the above criteria.

2. Register your business with the Federal Tax Authority (FTA).

To register your business for VAT, you must register it with the Federal Tax Authority (FTA). To do this, below is a summary of the minimum requirements:

Possess a Trade License: To register your business for VAT, you need a Trade License.

Register with the FTA: Once you have a Trade License, you need to register your business with the FTA through their e-Services portal. You will need to provide the following information:

Business name and address

Bank details

Type of business activity

Trade License number

Details of the business owner(s)

3. Obtain a Tax Registration Number (TRN).

Once you have registered your business with the FTA, you will receive a Tax Registration Number (TRN). This number is unique to your business and will be used for all your VAT-related activities.

4. Set up a VAT accounting system.

To comply with VAT requirements, you need to comply with the provisions as a taxpayer as set out in the Executive Regulations. Ideally, you should set up a VAT accounting system that tracks your business’s VAT-related activities to help with the VAT reporting. This includes:

Recording the VAT charged on your sales and the VAT paid on your purchases

Maintaining detailed invoices for all your sales and purchases

Preparing and submitting VAT Returns to the FTA regularly

VAT returns must be filed regularly, typically quarterly, or monthly. To file a VAT Return, you need to:

Prepare a VAT Return form: The VAT return form includes details of your business’s sales and purchases for the period and the VAT charged and paid.

Submit the VAT

Payment on VAT due

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simplysloved · 1 year