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UAE Guide: Which Documents are Required to Register for VAT Return?

VAT in UAE
Which Documents are Required to Register for VAT Return in UAE

Value Added Tax is a tax on the consumption of goods or services applied on each point of sale. It is an indirect tax paid by the end consumer and collected by the businesses on behalf of the government. Although it’s a common tax in most of the countries but in UAE it was introduced on 1st January 2018.  The amount of tax is 5 percent and it was applied with the intention to generate a new stream of income for the UAE government, which then will be used to provide high-quality public service. It will also help the government to realize its vision of reducing the dependency on oil and other hydrocarbons as a source of revenue.  

All the businesses in UAE generating an income of more than AED 375,000 are required to submit a VAT return. However, companies with taxable supplies worth more than AED 187,500 but less than the mandatory threshold limit may opt for voluntary registration for VAT. If the business falls into the criteria specified by the government, then it should prepare the documents required to register for VAT returns. As a result, they will receive a VAT certificate consisting of a specified VAT identification number which will be used for any future transaction. 

Mandatory Documents to Register for VAT Return in Dubai, Abu Dhabi, Sharjah, UAE: 

In order to get registered for VAT filing in Dubai, UAE, business entities need to compile the following set of documents:

  • Trade license
  • Certificate of incorporation or registration certificate
  • Article of association/ partnership agreement 
  • Copy of passport and emirates ID of the manager
  • Detail of manager
  • Copy of passport and emirates ID of the manager
  • Physical office location of the business
  • Contact details
  • Bank account details
  • List other business(es) of the directories/ partners in UAE in the last five years 
  • Moreover, Business needs to provide a declaration about:
  • business activities of the applicant
  • actual or estimated financial transaction values
  • turnover in the last 12 months with supporting document
  • Details about expected turnover in the next 30 days
  • Details about expected exempt supplies
  • imports and exports
  • GCC activities of the business
  • Details about customs registration

Essential Documents to Attain VAT Tax Certificate in Dubai, Abu Dhabi, Sharjah, UAE: 

Following are the documents required when applying as an individual for a VAT tax certificate:

  • A request letter with the sign of the applicant
  • A permit for the residence of an applicant
  • A photocopy of the resident’s passport

When applying as an authority for a VAT tax certificate in Dubai, UAE:

  • A signed application letter from the authorized signatory
  • A copy of the decree
  • A photocopy of the act of incorporation

Companies need to prepare the following documents to get VAT Tax Certificate:

  • An application letter that is signed by the authorities of the company
  • A photocopy of the trading license that is valid

VAT applies equally to tax-registered businesses managed on the UAE mainland and in the free zones of UAE. However, if the UAE Cabinet defines a certain free zone as a ‘designated zone’, it must be treated as outside the UAE for tax purposes. The transfer of goods between designated zones is tax-free.

For enquiries Phone (UAE): +971 567952590

 

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What is Exports and Imports under VAT in Dubai?
How to Amend VAT Details in Dubai and Abu Dhabi?

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