The United Arab Emirates implemented Value Added Tax (VAT) at a rate of 5% in 2018, which affects most goods and services, exempting necessities like food, healthcare, and education. Businesses exceeding AED 375,000 in supplies must register, ensuring their financial records comply with updated regulations. The VAT registration process is online via the Federal Tax Authority's website, requiring specific documentation based on the nature of the business.

1. VAT REGISTRATION UAE

2. Int.
• United Arab Emirates has always offered great deals of monetary and investment
opportunities to the world. UAE is an admired key investment axis for the avid
entrepreneurs from all over the world. It is growing and progressing in multiple
fronts and headed to implausible accomplishments. In this scenario,Value Added
Tax (VAT) has been implemented in the UAE in 2018 as in the long run it will
benefit everyone who lives here.

3. What isVAT?
• VAT (Value AddedTax) is an indirect tax initially with a very nominal rate i.e. 5%, applicable for
most of the goods and businesses.Though UAE government has exempted food items,
education and healthcare services fromVAT but people can notice a little rise in their cost of
living. However, it needs to be considered thatVAT will not strain the wallets much but allows
the high living standards not only to remain high but improving.
• To comply withVAT and related legal requirements businesses need to make changes in their
existing processes. Companies have to ensure that their accounts or records are well managed
according to the newVAT regulations implemented by the government effective from 1st Jan
2018.
• If a business in UAE exceeding AED 375,000 with the supplies and imports of goods/services
subject to tax then it must register forVAT as per the FederalTaxAuthority. As per FTA, all
businesses must ensure the recording of their financial transactions, apart from thatVAT
registration requirements have done and ledgers are updated in time to avoid penalties.

4. VAT Registration Process
• To complete theVAT registration in UAE, the service is available 24/7 through the FTA’s
website. Businesses should visit the website www.tax.gov.ae, select the e-Services portal,
sign up, and create an account.After the email verification, one can log in and register the
business.
• The FTA has advised businesses to provide precise information and fill up the application
form accurately. Scanned documents including the trade/business license,
passport/Emirates ID of the Manager/Owner of the business must be attached to complete
the registration process.
• The passport/Emirates ID of the authorized signatory must be submitted if the signatory is
not the manager him/herself along with the proof of authorization including articles of
association, power of attorney attested by notary etc.

5. VAT Registration Requirements
• There are a couple of documents required that come with registering with theVAT in UAE.The nature of the organization matters
in registration.
For a businessman applying for aVAT certificate as an individual, the following are needed:
• Applicant’s request letter with signature
• Applicant’s resident permit
• Applicant’s passport copy
For businessmen registering as an authority, the requirements are as follows:
• Decree copy
• Application letter with authorized signatory
• Act of incorporation copy
The requirements for a Dubai-based business registering forVAT are as follows:
• Applicant’s application letter signed by the company’s authorities
• Trading license copy

6. Contact Us
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