VAT, or value-added tax, is a consumption-based tax. Unlike income taxes, VAT applies to purchases of goods and services. It is applied at every stage of the manufacturing and distribution processes where the company contributed value to the product. For most purchases, it is paid by the client. VAT must be collected and remitted to the government by the company. Failure to do so may result in fines or even criminal prosecution.
As of January 1, 2018, the UAE required businesses to register for VAT. They were required to collect and remit the amounts to the government. It’s the first time that there has been a VAT in the Middle East.
The Federal Tax Authority (FTA) was established to manage and collect federal taxes. VAT was implemented to provide a new source of income to help the government provide different services, including hospitals, parks and waste control. The vision behind implementing VAT was to reduce its dependence on income derived from oil.
Our VAT & TAX consulting services include:
Account creation support
Our team will assist and advise you on creating an online account through the Federal Tax Authority portal.
Tax Registration Number (TRN) certificate
Upon completing the registration process, our team will issue you with a Tax Registration Number (TRN) certificate.
Documentation
We will assist you in preparing and submitting the required documents in accordance with the format mandated by FTA.
Tax residency
Our team can assist you in securing an individual or corporate tax residency certificate from the Federal Tax Authority.
VAT Registration Process:
Our staff of highly skilled and experienced accountants will assist you in understanding and complying with the UAE’s Value Added Tax regulation. We will examine your invoices, bids, contracts, and purchase orders to decide whether your company fits into one of two categories: required or voluntary registration.
Voluntary Registration
Your company’s taxable goods and services value surpassed the voluntary registration threshold (AED 187,500.00) in the previous 12-month period, or your company’s total taxable goods and services value is expected to reach the voluntary registration threshold (AED 187,500.00) in the next 30 days.
If your company has generated revenues below AED 187,500.00, then you are not yet eligible for VAT registration. If your company crosses the mandatory threshold limit, you have 20 working days to submit the application.
You need to have a corporate bank account to facilitate the registration process.
Mandatory Registration
Your company’s taxable goods and services value surpassed the required registration threshold (AED 375,000.00) in the previous 12-month period, or your company’s total taxable goods and services value is expected to reach the necessary registration threshold (AED 375,000.00) in the next 30 days.
Invest First assists clients with seamless and hassle-free VAT registration and ensures your business is VAT compliant. We charge a very nominal fee of for tax related services:
- $ 250 (AED 900) for VAT registration.
- $ 375 (AED 1350) Individual Tax Residency
- $ 625 (AED 2250) for Corporate Tax Residency
For more information regarding VAT registration and related services contact our team and get started.