The document outlines the implementation of value added tax (VAT) in the UAE, which includes a standard rate of 5% on taxable goods and services, as well as exemptions and zero-rated categories. It highlights the requirements for businesses to register for VAT, detailing necessary documentation and conditions that must be met. Additionally, it emphasizes the importance of consulting regulated tax agents to facilitate the VAT registration process.

1. THE IMPLEMENTATION OF UAE
VALUE ADDED TAX (VAT)
https://vatregistrationuae.com/implementation-uae-value-added-tax-vat/

2. Int.
 The UAE government constantly implements frameworks and mechanisms across
several different government departments as part of their key initiatives in
boosting economic health. Among them isVAT implementation in UAE, which
was declared by the FederalTax Authority. For the public,Value AddedTax
implementation meant higher prices for food, entertainment, and other
consumer goods and services. For businesses in the country, it meant levying the
currentVAT rate of five percent on goods and/or services that are taxable.
 The UAE government also introduced a decreasedVAT rate and exemptions for
specific goods and services. As not all products and services are taxable, it is best
to consult with regulated tax agents in Dubai regardingVAT implementation in
UAE.

3. What isVAT UAE?
 Value AddedTax in UAE is tax that’s applicable to all products and/or services;
hence why it is also known as a consumption tax.The taxation is indirect as it’s
applicable to final consumers who buy or acquire products/services.

4. Reduced Rates ForVAT In Dubai
 The following products and services are considered zero-rated:
 International transportation services;
 Exports;
 Investments in precious minerals and materials;
 Sea and aircraft transportation services;
 Supply or lease of residential properties;
 Education services;
 Medical or health care services

5. Reduced Rates ForVAT In Dubai
 There are also other categories of products and service that are considered
exempt fromVAT in UAE, and they are as follows:
 Land plots sale;
 Residential properties sale by a realtor;
 Local passenger transport;
 A host of financial services
 In order for a business to collectValue AddedTax, it has to register with FTA,
UAE’s tax authority.

6. Are businesses required to undergoVAT
registration?
 VAT is a relatively new kind of tax introduced; however, the government already made crucial progress when it comes to
clarifying those that are required to registered forVAT.VAT registration does not apply to all businesses in the country; however,
it is mandatory for businesses that meet certain conditions. Here are some important points to remember aboutVAT registration
in UAE:
 Companies and natural persons that make taxable supplies within the country can register forVAT voluntarily;
 Legal business entities that import goods which are subject to the indirect tax can also voluntarily register forVAT in UAE;
 Companies that import goods which has a total that exceeds Dh187,500 annually can choose to undergoVAT registration in
UAE;
 Foreign companies that sell taxable goods or services within the country are required in implementingVAT in their businesses;
 Companies that import and/or sell goods and services which has a total that exceeds Dh375,000 annually are required in
implementingVAT within their organizations starting withVAT registration
 Companies in the UAE that are registered forVAT can impose and collectVAT from final consumers.They will then payVAT to
the government. Businesses are to fileVAT returns regularly, which enables them in recovering amount ofVAT paid. It’s useful to
know foreign companies which are registered forVAT may also claimVAT refunds.
 If you are considering of opening a business in the country, then opt to register forVAT from the start. Fortunately for you, our
regulated tax agents in Dubai can assist you.

7. What are the needed documents UAEVAT registration?
 There are several requirements which are to be furnished to the FTA forVAT registration, and they include the following:
 Copy of the business license/permit of the company
 Copies of owners’ passports (for companies, shareholders’ passport copies are needed)
 Articles and Memorandum of Association
 Information regarding the company’s appointed representative and the person’s contact details
 Information regarding the company’s bank account including IBAN
 Proof of registered address of company within the country
 Income statement of the business for the past twelve months if available
 Estimation of business’ expected revenue, expenses and turnover for the following thirty days followingVAT
registration
 Information regarding the export and import activities of the business if applicable

8. What are the needed documents UAEVAT registration?
 Customs code of the business andCustom Code Certificate copy if applicable
 Information regarding GCC countries wherein the company is trading with
 Detailed description of business experience of the company for the past five years if
applicable
 Information regarding intention of business to register as a tax group if applicable
 Identification papers copies with necessary visas for natural persons
Even if registration forVAT UAE may be completed without the help of experts, it is
extremely crucial to seek their help as they can help increase the likelihood of the business
completing the procedure ofVAT registration successfully.
Take note: the process can be lengthy and time-consuming, plus it involves the furnishing of
complete and accurate details. Should you wish to talk to our regulated tax agents in Dubai,
call us today to book a consultation!We would love to hear from you and understand your
specific needs and requirements.

9. Contact Us
 WhatsApp (Messaging Only): +971526922588
 WhatsApp & Phone: +971554828368
 For Consultation: consultant@farahatco.com
 For Sales Enquiries: sales@vatregistrationuae.com