Adsauditorsuae|ADS Management Tax Consultancy | Corporate Tax Registration | VAT Registration Dubai

 Value Added Tax (VAT) is mandatory for businesses operating in the UAE that exceed the annual taxable turnover threshold of AED 375,000. Here are the key formalities for VAT registration : 1. Determine Eligibility Businesses must assess their taxable turnover. Registration is mandatory for businesses exceeding AED 375,000 annually and voluntary for those above AED 187,500. 2. Prepare Required Documents Businesses must provide the following: Trade license copy Emirates ID of business owner(s) Passport copies of business owner(s) Business contact details (address, phone, email) Financial statements or turnover details Description of business activities 3. Register on the FTA Portal Businesses must create an account on the Federal Tax Authority (FTA) portal and submit the application online. The process includes filling in business details, turnover information, and uploading supporting documents. 4. Obtain VAT Registration Certificate Upon approval, the FTA issues a Tax Registration...

  What is VAT? Value Added Tax (VAT) is a consumption tax levied on the value added at each stage of the supply chain. It applies to goods and services and is a key source of revenue for governments. VAT is collected incrementally by businesses at each point of production, distribution, and sale. How VAT Works VAT is charged at each step of the supply chain, starting from the production of raw materials to the sale of the final product to the consumer. Each seller in the chain adds VAT to the sale price and remits this tax to the government, minus the VAT paid on their own purchases (input tax credit). This mechanism helps prevent double taxation. Features of VAT in Dubai Standard Rate : The standard VAT rate in Dubai is 5%. Input Tax Credit : Businesses can claim credit for VAT paid on purchases against VAT collected on sales. Registration Threshold : Businesses must register for VAT if their taxable supplies and imports exceed AED 375,000 annually. Exemptions : Certain sectors li...