Importance of VAT Registration
Experts observe that the introduction of VAT in UAE will bring long-term benefits to the country's economy and business owners. The significant reasons why VAT registration in Dubai is considered important include:
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
Basically, a business can opt for any of the two types of VAT registration in UAE:
1. Mandatory Registration
It is mandatory that a business must register for VAT:
- 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.
2. Voluntary Registration
A company may opt for Voluntary Registration:
- 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.
Government Departments
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