VAT Registration & Filing

Services in Dubai, UAE

ADAM Global provides best VAT Return Filing in Dubai

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VAT Registration Services in Dubai, UAE

All businesses in the UAE must register for VAT. Registering under UAE VAT law ensures government recognition. VAT registration eligibility depends on your company’s revenue. ADAM Global offers top-notch VAT registration, deregistration, VAT accounting, and filing services in Dubai.

UAE VAT Registration Online

As of January 1, 2018, business owners in the United Arab Emirates are required to register their establishments under the VAT law. A corporation must file VAT returns on a regular basis or as instructed by the authority once it has registered for VAT in Dubai.

VAT Registration is mandatory for companies and individuals doing businesses in the UAE if the annual turnover is more than AED 375,000/-.

The VAT registration processes in Dubai involve:

Documents Required for VAT Registration in Dubai

Passport copy or Emirates ID to prove the identity of the authorized party
Trade license copy of the company
Certificate of Incorporation of the company
Certificate of Articles of Association of the company
Certificate of Power of Attorney of the company
Description of business activities
Turnover for the last 12 months in AED

Supporting document for 12-month sales
Expected turnover in the next 30 days
Estimated value of imports for one year from all GCC countries
Estimated value of exports for one year to all GCC countries
Your consent whether you deal with GCC suppliers or customers
Supporting documents for customs registration in the Emirates if applicable.
Details of Bank Account

VAT Registration Processes

A business can opt for any of the two types of VAT registration in UAE:

If the total value of its taxable supplies and imports exceeds the required registration threshold over the previous 12 months
If the business expects that the total value of its taxable supplies and imports will exceed the obligatory registration threshold in the next 30 days.
The threshold for mandatory registration of a business is AED 375,000. But this threshold is not applicable to foreign organizations.

If it does not meet the mandatory registration criteria,
If the total value of its taxable supplies and imports or taxable expenses in the preceding 12 months surpasses the voluntary registration threshold,
If the business foresees that the total value of its taxable supplies and imports or taxable expenses will exceed the voluntary registration threshold in the next 30 days. The threshold for voluntary registration of a company is AED 187,500.

Tax Registration Threshold Calculation

Federal Decree-Law No. (8) of 2017 on Value Added Tax.
Considers value of Taxable Goods and Services.
Value of Concerned Goods and Services received by the person.
Value of Taxable Supplies owned by the person if they acquired a business from another person.
Value of Taxable Supplies made by related parties as per Executive Regulation. VAT Registration as a Group in UAE
Two or more persons can apply for VAT registration as a Tax group.
Each person must have a Place of Establishment or Fixed Establishment in the state.
The relevant persons must be Related Parties.
One or more persons in a partnership control the others.
If Related Parties don't apply, the Authority can assess their relationship and register them as a Tax Group.

VAT-exempt sectors

The following categories of supplies will be exempt from VAT:

The supply of some financial services that explained in VAT legislation

Residential properties

Bare land

Local passenger transport

How to Register for VAT in UAE

The registration for VAT in UAE is an online process that can be done through the VAT registration portal available on the website of www.tax.gov.ae.

Once the application is submitted, the FTA will review the information and documents submitted and approve the application if everything has met the requirements, and it will allow a Tax Registration Number (TRN).

Once the VAT registration process is over, the Ministry of Finance will issue a VAT certificate which is an official confirmation from the authority that the business is registered under the VAT Law in the UAE.

A VAT Certificate includes the following rudiments:

VAT Registration Number
Date of the VAT registration
Issue date
Address of the Registered entity
First VAT return period
VAT return due date
Start and end dates of tax periods

Penalty for Non-Registration under VAT

Any company that fails to finish the VAT registration process under the deadline set by the Federal Tax Authority or if the company fails to submit registration after crossing the manual threshold limit is liable to pay a fine of AED 20,000.

The Importance of VAT Registration

According to experts, the UAE’s economy and business owners would reap long-term benefits from the implementation of VAT. The following are some of the main justifications for why VAT registration is crucial in Dubai:

VAT Return filing in UAE

In order to submit the VAT received and paid by the organization to the tax authorities within the designated time period, VAT return filing is a crucial part of the VAT system. With knowledgeable personnel to handle all of your VAT-related matters and transactions, VAT Return Filing Services in the United Arab Emirates provide complete VAT services.

With ADAM Global, you can be sure that your clients are receiving top-notch VAT return filing services in Dubai, giving you peace of mind. We handle all VAT-related matters, lightening the load on your company.

What is VAT return filing in the UAE?

Filing a VAT return merely indicates the amount of VAT that must be paid or reimbursed to the tax authorities. VAT returns are often filed on a quarterly basis and help firms stay on the correct financial track. It is preferable to operate your business in a VAT-compliant manner in order to prevent any needless penalties that could become an obstacle.

How do companies process VAT return filing in the UAE?

Companies use the Federal Tax Authority (FTA) portal to file their VAT returns, entering the information on the VAT 201 form. The VAT 201-VAT return form can be accessed by the taxpayer by logging onto the FTA e-services portal.

Enter the following details in the form,

Information of the taxable person
VAT return period
Sales and output VAT
Expense and input VAT
Net VAT due
Report requirements
Authorized signatory and declaration

Following application submission with all necessary information, FTA sends an email confirming receipt of the VAT return form. The taxpayer must pay the required tax by one of the available payment methods, such as exchange houses, E-dirham, online transfers, over-the-counter payments, etc., after filing the VAT return.

Importance of VAT Return Filing in the UAE

Establishing a VAT filing procedure or maintaining compliance with VAT provides legal certainty for your company. When it comes to paying taxes, VAT has the upper hand and doesn’t suffer any losses.

Benefits of VAT return filing in UAE

VAT Return Filing Services in UAE:

Encourages investment and personal savings.
Provides quick revenue through transparent indirect tax.
Facilitates smooth business dealing with SMEs and VAT-registered companies.
Highlights business image under VAT law.
Easier to manage than other indirect taxes.

Penalties and fine associated with VAT Return filing in the UAE

VAT fines and penalties are charged in UAE for non-compliance of VAT laws. Some of the VAT fines and penalties applicable to a VAT registered person in case of any non-compliance,

If taxable person fails to register within the specific timeline then penalty of AED 20,000/- is applicable to such business.
If the taxable person fails to apply for VAT deregistration within the specified time, then penalty of AED 10,000 shall be applicable to such business.
When goods are sold, it’s mandatory to display price that must be inclusive of tax. If not, administrative penalty of AED 15,000 shall be applicable to the taxable person.
A VAT registered person has the responsibility to submit their VAT returns within 28th of the following month, if there is any delay in submitting the VAT return, then AED 2,000/- would be levied.
Every VAT registered person should maintain their book of records and documents that support all transactions. VAT return filing in Dubai support such services providing right documents at the right time.
A taxable person should submit voluntary disclosure form to rectify any omission or error in VAT returns. AED 3000 is the fixed penalty charged for submitting the Voluntary disclosure form and for the second time, its AED 5000.

Some of the common errors businesses make while VAT Return Filing in the UAE

Poor maintenance of records
Mistake in calculating and paying VAT amount
Improper planning
Hiring wrong resources
Failure in issuing valid tax invoice
Poor understanding of VAT laws
Improper accounting setup

There have been numerous errors about input tax deduction as a result of misinterpreting the VAT laws. The law on VAT permits input VAT to be recovered from suppliers of goods and services.

ADAM Global's VAT Return Filing Services in UAE

Compiles all necessary documents for VAT return filing.
Prepares returns at the end of each tax period.
Identifies and pays minimum tax liability.
Serves as your representative.
Ensures timely returns.
Transparent handling of VAT matters from the start.
Provides specialized VAT return filing services in UAE.
Provides guidance on UAE's VAT laws and guidelines.