Full Guide On Online VAT Registration UAE

VAT (Value Added Tax) is a common indirect tax. Mostly, countries are using VAT tax law in their country with different rates of interest. On 1st January 2018, the UAE government introduced the VAT tax law with a 5% rate. The VAT 5% VAT rate applies to almost all the products and services but some products and service VAT rate is zero. It’s applied equally to the UAE mainland and free zone areas companies.

After introducing VAT in UAE, it brings business opportunities for the people like VAT services. VAT is a new source of income that helps to accomplish the Vision of the UAE government and reduce the dependence on oil and other hydrocarbons. As per the news, the UAE government uses the VAT income for the public sector.

VAT registration has become compulsory for almost all businesses in the UAE. According to the FTA (Federal Tax Authority) Guideline, Businesses can register for VAT free of cost. They can apply for VAT registration 24/7 on the FTA official website.

VAT tax is charged at every stage of the supply chain but it’s paid by the end-user. Because Businesses can claim the VAT tax. Companies work as mediocre between the govt. and customer, Business collect the tax from the customer and submit it to the government. Only VAT registered businesses have permission to do the following things.

1. Charge VAT on the transaction.

2. Pay VAT to the government.

3. Filing of VAT.

4. Calin for VAT

Download PDF - Federal Decree-Law No. (8) of 2017 on Value Added Tax

VAT Registration Thresholds

Do every business need to register? NO. First, you have to check that you are eligible for registration. Based on the below mentioned thresholds, companies can easily determine that they need mandatory registration, Voluntary Registration, and Exemption from Registration.

• Mandatory VAT Registration - If your business’s annual turnover exceeds AED 375,000, you need mandatory VAT registration.

• Voluntary VAT Registration - If your business’s annual turnover is between AED 187,500 & AED 375,000 then you need a voluntary VAT registration.

• Exemption - If business turnover is below AED187,500.

If you are a startup and your expenses or revenue are above AED187,500 then you should Register Voluntary.

Required Documents For The VAT Registration UAE.

1. Trade License Copy

2. Owner and partner Emirate ID

3. Owner and partner Passport Copy

4. Memorandum of Association (MOA)

5. Company Bank Account Details

6. Customs Authority Registration code

7. Company past year revenue record, financial sheet, audit report, and bank statement.

8. Proper Address of the Company.

9. Import and export business activity details.

10. Tax No. along with tax group details.

11. revenues and expenses of Projected for the next 30 days.

As per FTA, all the required documents should be proper and appropriate. If they found any inability in the document then it leads it towards plenty. All the documents will be submitted online on the FTA website.

VAT Registration Process.

The UAE government has given the online portal for VAT registration on FTA websites. So that companies can register online easily. To register online is essential for the business to understand the online registration process before starting registration. Businesses have to understand the level to complete registration.

Before applying online, You have to log in to their E-saving account. Log in link. If you don’t have then don’t worry, create an E-saving account. Registration link. Once you have created your E-saving accounting then login into your account.

Step 1- Ready your documents in PDF, JPG, PNG, and JPEG format. The individual file size limit is 2 MB.

Step 2 - After logging in you canis see the option for VAT registration as we mention below.

Click on the Registration for VAT.

Step 3 - After clicking on Registration for VAT. The guide will start. Read out the guide carefully. So that you can understand the future process and important aspects. Once you have read then click on proceed.

Step 4 - Here you will get the VAT Registration Form. It has 8 sections that are required to fill.

• About the Applicant

• Details of the applicant

• Applicant Contact Details

• Applicant Bank Details

• Business Relationship

• About the VAT registration

• Declaration

• Review and Submit

After completing, submit the form to review. After getting approval.

Congratulations You have successfully registered.

Note:- If you don’t do any activity till 10 minutes then you will be logged out automatically due to data security purposes. Be careful while filling a form, if you provide incorrect information then you will get plenty. The VAT registration process takes approx 10 - 15 minutes if you have all the documents on hand.

List of the VAT Rate For different industries.

In the UAE, VAT has three different Categories.

1. 5% VAT

2. Exempt VAT

3. 0% VAT

VAT Rate On Education Industry.

Private and Government School (Excluding Higher Education) and related goods and services

0% VAT Rate

Higher education Provided by the Private institute and related goods and services

5% VAT Rate

Higher Education Provided by the Govt. and related goods and services

0% VAT Rate

Pre School Education

5% VAT Rate

School Uniforms

5% VAT Rate

Stationery Products and School Uniforms

5% VAT Rate

Electronics Equipment

5% VAT Rate

School trips for recreation

5% VAT Rate

VAT Rate On Oil And Gas Industry

Crude Oil & Natural gas

0%

Other Oil and gas products including petrol at the pump

5% VAT Rate

VAT Rate On Healthcare Industry

Preventive and human treatment services including vaccination

0% VAT Rate

Other healthcare not for preventive and human treatment.

5% VAT Rate

Medical equipment and medicines

0% VAT Rate

Not listed Medical equipment and medicines in the cabinet decision

5% VAT Rate

Other Medical Supplies

5% VAT Rate

VAT Rate on the Real Estate Industry

Commercial building sale and rent

5% VAT Rate

completion after the construction first sale and rent of the residential property

0% VAT Rate

The first sale of the charitable building

0% VAT Rate

Bare land

Exempt

Hotels, motels, and serviced accommodation

5% VAT Rate

Sale of Non-Bare Land

5% VAT Rate

UAE Citizen building own home

5% VAT Rate (recoverable)

VAT Rate on the Gold, Silver, and Platinum Jewelry Investment.

99% tradable and pure in global markets

0% VAT Rate

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