Worldwide Formations has experienced UAE tax partners on hand to offer professional advice and VAT services to companies and entrepreneurs.
Our VAT registration consultants in the UAE can guide you through the process and help you understand this relatively new tax system, its compliance responsibilities and exemptions.
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One of the biggest overhauls in the UAE’s tax laws in recent times, Value Added Tax (VAT) was implemented across the country from the 1st of January, 2018. Today, VAT is flat at 5% on most goods and services with several exemptions.
You must register for VAT in the UAE if the value of your annual supplies exceeds the mandatory registration threshold of AED 375,000.
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The expert team at Worldwide Formations are on hand to support you with the following services.
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Businesses in the UAE must register for VAT if their taxable supplies and imports exceed AED 375,000 per year. If a business’s taxable supplies and imports are below this threshold, it is not mandatory but optional to register for VAT. Businesses with supplies between AED 187,500 and AED 375,000 can register voluntarily to reclaim VAT on their expenses.
Contact us for VAT registration services in the UAE.
To register for VAT, businesses need to submit several key documents, including:
Details about the business’s financial activities, including estimated turnover and the types of goods/services provided.
The VAT registration process involves the following steps:
Upon approval, businesses will receive a VAT registration number and can start charging VAT on taxable transactions.
Businesses that fail to register for VAT when required may face significant penalties. The Federal Tax Authority (FTA) may impose fines for non-registration or for delaying the registration process, which could result in financial liabilities. Additionally, businesses that do not submit VAT returns or pay VAT on time could incur late payment or filing penalties.
Call us at +971 (4) 3555700 if you need help with VAT registration for a new company in the UAE or any other VAT-related services.
VAT registration allows businesses to charge VAT on their sales and claim VAT on business-related purchases. This helps businesses recover VAT on goods and services purchased for business use, improving cash flow. It also ensures that businesses remain compliant with UAE tax regulations, which is crucial for credibility and smooth operations, especially when working with other VAT-registered entities or in international trade.
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