What Is The Procedure of Vat Registration In Dubai?

In the professional world, VAT is a crucial source of income for a country’s government, charged upon goods and services levied at each point of sale. In the UAE, consumers have to pay 5% extra for the purchase of particular goods and services. It is mandatory to apply for VAT registration for business owners who are earning an annual turnover of more than 5 Lakhs on the supply of goods and services. However, if the turnover is of a particular business is less than the desired limit, the business owner can avoid paying VAT to the government authorities.

Before moving further, let’s first understand what VAT is all about.

VAT Registration in Dubai

What is VAT?

VAT or Value Added Tax is an indirect tax levied on local and imported goods at each stage of production. Most of the people confuse VAT with sales tax, however, sales tax is collected once at the time of final purchase by a consumer, while VAT is collected at several points throughout an item’s production at the time of each sale is made. In short, it is a principle where a seller charges VAT from the buyers and then pays to the government.

After learning about its meaning, let’s know more about its purpose. The main purpose of VAT is to increase the government’s revenue collection through consumer spending, and its collection is considered a good way to maintain a balance between income tax and consumption tax.

How to register for VAT in Dubai?

More than 160 countries are having a value-added taxation system based on tax payer’s consumption, and not his/her income. VAT registration is classified into three categories- mandatory VAT registration, Voluntary VAT registration, and Exemption from VAT registration. One must know the eligibility criteria while applying for VAT registration. For instance, if your business turnover exceeds the mandatory registration threshold of AED 375,000 and the voluntary registration threshold of AED 187,500, then you can apply for VAT registration in Dubai.

One can fill the registration form online and submit the concerned documents along with the application form in order to receive a VAT number. After that, the Federal Tax Authority (FTA) will evaluate the information and documents, thus deciding on its approval. 

Documents Required during VAT Registration in Dubai

  • A copy of passport and Emirates ID
  • A copy of the trade license of a company
  • An elaborated description of what business activities one is dealing with
  • A record of business turnover of the last 12 months in AED
  • Details of bank accounts

These are the mandatory documents required. However, you may require following documents:

  • A record of the estimated value of imports and exports for one year to each GCC countries
  • A record of expected turnover in the next 30 days
  • Other documents such as a certificate of incorporation, articles of association, and power of attorneys are needed for authorizing a person’s identity and his/her commercial activities running in the UAE

Now that you are aware of everything that is needed for VAT registration in Dubai, you can hire professional consultants to eliminate the complexities of the registration process.

Establish your Dream Company by Hiring a PRO Service in Dubai!!

Do you have a dream to start a business in Dubai? Are you finding it difficult to complete the process of company establishment in Dubai? If yes, then you are reading the right content.

Not only you, but there is a huge population from the corners of the world who always dream to start a company in Dubai because the economy here is very developed. There is a space for every category of the industry so the investors never feel restricted at any point. But the problem comes when you have to complete the formalities for the business setup. It is not at all easy.

You have to visit different officials and many authorized centers to complete the business setup formalities. There are some steps that you have to complete that you are even not aware of. If you want that nothing goes wrong in the formation of your dream company, we recommend hiring pro service in Dubai.

 What is Pro service?

PRO or Public Relations Officers are the experts who help you in handling all your documents and paperwork related to your business establishment. They will help you connect through different departments for labor cards, visa applications, commercial approvals, trade licensing, and more. The entire process will be glitch-free for you.

Few important areas where they offer their helping hands are:

  • Helps to apply for resident and employment visa
  • Helps in getting labor and immigration cards
  • Helps in passport clearance
  • Helps in the notarization of legal documents
  • Helps in updating and renewal of trade and annual license

Reasons to hire PRO Service in Dubai:

  • Save Time

The approval process for the documents clearance and related procedures are time-consuming. A PRO takes care of all these steps saving your time and energy.

  • Save Expenses

A PRO does several tasks like getting approvals from Immigration &Labor Ministry, acquiring a license, opening a bank account, and so many more. Whether you have an in-house PRO or taking help from out, a PRO with his/her network helps reduce the expenses made in document clearance.

  • Stay Stress-Free

 The experts you hire will smoothly function for the approval of the documents and other purposes. They will care for the safe submission, pick-up, and delivery of the documents from various departments.

With the above discussion, you might be confirmed that PRO service in Dubai will take responsibility for the document processing for your business establishment. But, there is something additional that they will offer you. They will act as your business advisor who will keep you aware of all the legal obligations and give you the right advice at every step. Hence, whether you hire an in-house PRO or opt for an experienced PRO Service in Dubai, getting the service at the right time will save you from all the hassle.

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