Paci

Paci logo
  • Home
  • About
  • Pricing
  • Book a demo
Step-by-Step Guide to VAT Registration Process for UAE Companies

Value-added tax, or VAT, is a consumption tax applied to most products and services. Value-added tax, or VAT, was first implemented in the United Arab Emirates in January 2018 at a standard rate of 5%. 

In this blog, we can get into the VAT registration process for UAE. 

Who Needs to Register for VAT?

VAT Registration UAE Eligibility

Determining if your business has to register for VAT is fundamental to understanding the UAE’s VAT landscape. The following are the essential requirements:

Understanding VAT Registration UAE Eligibility
  • Mandatory Registration

If your company’s yearly taxable supplies and imports exceed AED 375,000, you must register for VAT. 

  • Voluntary Registration

For businesses with taxable supply and imports between AED 187,500 and AED 375,000, VAT registration is not necessary, yet it can be beneficial for credibility and tax recovery.

Implications of Not Registering for VAT

When necessary, failing to register for VAT might have significant consequences.

  • Penalties

Businesses that register late are exposed to large fines and penalties that may have a detrimental financial impact. An administrative penalty of AED 10,000 will apply.

  • Legal Problems

Failure to comply may result in legal troubles and damaged reputations, which may impede collaborations and business expansion.

  • Loss of Input Tax Recovery

Without registering for VAT, businesses cannot recover the VAT they have already paid on the goods they manufacture, which results in increased costs. 

VAT Registration Requirements

Ensure you have the following documentation and details available before starting the registration process:

  • Trade License
  • Emirates ID
  • Copy of Passport
  • Details of Contact
  • Bank Account Information
  • Financial Data
  • Details of Business Activity
  • MOA of business
  • Other documents such as sample expense bill with TRN, Sample invoice, and sealed and signed copies of taxable supplies & expenses.

How to Register for VAT in UAE for a New Company?

Let’s have a look at the step-by-step guide to VAT registration for UAE! 

Step-by-step guide to VAT registration for UAE

Step 1: Determine Your VAT Registration UAE Eligibility

First things first! Identify if VAT registration is required for your company. 

  • Identify if VAT registration is required for your company. 
  • If your yearly income exceeds the 375,000 mark, you have to register for VAT. 
  • If the amount is between AED 375,000 and AED 187,500, you have the option to voluntarily register. 

If you want to recover any VAT you paid on business costs, this can be helpful.

Step 2: Register on the Federal Tax Authority (FTA) Portal 

Go to the FTA portal and register. Enter the necessary data and confirm your email address to get your account activated.

Step 3: Log in to the FTA Portal and Begin the VAT Registration Process

Log in to the FTA portal and click the “VAT” tab after your account has been activated. To begin the registration procedure, select “VAT Registration”.

  • Complete the Registration Form

Provide accurate firm data on the VAT registration form, including phone numbers, company activities, estimated turnover, and banking data.

  • Provide the required documents.

Upload the necessary files, including copies of your trade license, passport, and Emirates ID.

Step 4: Examine and Submit Your Application

Examine the data you have submitted and make any required adjustments. Once you are happy that your application is accurate, submit it to be processed.

Step 5: Get Your VAT Registration Certificate 

Your VAT registration certificate and an email will be sent to you shortly as your application is approved. A Tax Registration Number (TRN) will also be issued to you if things is in good condition. You must provide this official VAT identification number on all tax bills and associated paperwork.

To guarantee a seamless registration process, you can choose to hire accounting services or tax experts. 

You can also refer to our pricing package to get to know the VAT Registration UAE Fees. We offer the most affordable package for the VAT registration process. 

Also read: What are the tax and VAT rules for influencers in Dubai? Here.

How Paci.ai Can Help in the VAT Registration Process in UAE

Paci.ai simplifies VAT registration for the UAE through the following features it offers. 

  • Guided Registration Process 

Paci.ai provides a comprehensive process guide to help you register for VAT. Our software ensures that you don’t overlook any important paperwork or processes, facilitating a stress-free and easy approach.

  • Document Management 

It can be not easy to keep track of all the required paperwork. With Paci.ai’s unified document management solution, all of your crucial files are in one location and prepared for submission.

  • Real-time Updates

Get up-to-date information on your VAT registration status in real-time. You may always stay informed about your progress in the registration procedure with Paci.ai.

  • Professional Assistance

Do you require help or have questions? You can reach our professional team with only a click. Get professional guidance and assistance anytime you need it.

How Paci.ai Can Help in the VAT Registration Process in UAE

Beyond VAT Registration: The Financial Management Services Offered by Paci.ai

  • Accounting and Bookkeeping 

Let’s say goodbye to manual accounting. Your bookkeeping processes are automated by Paci.ai, guaranteeing precision and saving you significant time.

  • Tax Management

Pay attention to your tax responsibilities. Paci.ai ensures adherence and ensures that you prevent penalties by managing your taxes effectively.

  • Financial Insights

Use Paci.ai’s customized financial insights to make well-informed decisions. Get a clear picture of your financial status and identify areas that need improvement.

  • Peace of Mind

Paci.ai handles your financial administration and compliance so you can concentrate on expanding your company. 

Prompting users to try out paci.ai platform

Final Thoughts 

Any firm must comprehend and abide by the regulations around VAT registration for UAE. Whether it’s an established business looking to streamline its financial operations or a startup trying to understand the VAT landscape.

Financial management and VAT registration shouldn’t confuse you. Accept the peace that comes with using integrated finance management services

Paci.ai frees you up to concentrate on what you’re good at—expanding your business. 

Are you prepared for hassle-free finance management

Contact us to get more insights on better finance management and VAT registration in the UAE. 

Leave a Reply

Your email address will not be published. Required fields are marked *