The UAE attracts investors from all over the world for many reasons, one of which is its attractive tax environment. While the UAE government does not levy personal and corporate income taxes, businesses and individuals are subject to other taxes, such as VAT.<\/p>\n
VAT is relatively new to the UAE business landscape, having been introduced only recently in 2018. Implemented at a flat rate of 5%, the purpose of this tax is to provide the government with additional revenue, which will be used to fund high-quality public services.<\/p>\n
\u201cIs VAT mandatory for my business?\u201d This is a common question business owners in the UAE ask, especially if they are new to the market. VAT IS NOT MANDATORY FOR ALL BUSINESSES. While some products and services are VAT exempt, the tax is levied upon the consumption of goods across various business sectors.<\/p>\n
In the UAE, VAT registration<\/a> is mandatory if your supplies and imports exceed AED 375,000. Under the tax law, businesses whose taxable imports and supplies exceed AED187,500 can voluntarily pay VAT.<\/p>\n So, what are these \u201ctaxable imports and supplies?\u201d<\/p>\n According to UAE\u2019s Federal Tax Authority (FTA), \u201ctaxable supplies\u201d are categorised as \u201c goods or services made by UAE-based businesses that may be taxed at five or zero per cent. For this purpose, imports are also considered if the supply of these goods or services would be taxable if made within the UAE.<\/p>\n In other words, a VAT-registered business in the UAE collects tax from its customers and pays it to the government. Furthermore, the government can reclaim the VAT<\/a> when a VAT-registered company pays it to its suppliers.<\/p>\n Now that we\u2019ve explained the basics of VAT in the UAE let\u2019s get to the core topic.<\/p>\n As with many other tax registration processes in the UAE, registering your business for VAT is fairly quick and straightforward. Take a look:<\/p>\n Step 1<\/p>\n Create an account on the Federal Tax Authority<\/a> website.<\/p>\n Step 2<\/p>\n Visit eservices.tx.gov.ae<\/a> and select \u201cSign Up.\u201d<\/p>\n Step 3<\/p>\n Provide your email address and password, and answer the security questions.<\/p>\n Step 4<\/p>\n You will receive a confirmation email explaining the further steps.<\/p>\n Step 5<\/p>\n Once your email is verified, you can complete your VAT registration by logging in to your e-service account.<\/p>\n The VAT application may need to be amended after the firm has been registered. You can make these amendments online, but you must keep in mind that you must inform the FTA within 20 days of making any amendments.<\/p>\n Failing to inform the administration of amendments in your tax record will attract the following penalties:<\/p>\n Other VAT-related offences also attract penalties such as:<\/p>\n Kindly note that some VAT-related amendments require prior approval from the FTA. For amendments that do not require approval, you can follow this procedure:<\/p>\n 4. Cross-check all the information before clicking on the \u201cSubmit & Review\u201d button.<\/p>\n Some sections of the VAT application are prohibited from direct amendments. The restricted sections are:<\/strong><\/p>\n The VAT registration and amendments process are relatively easy. However, if you require guidance, you can always reach out to our VAT consultants at Fortius.<\/p>\n You can also call the Federal Tax Authority at 600 599 994 or make a direct request on their official webpage<\/a>.<\/p>\n Be VAT Compliant With Fortius Guidance<\/strong><\/p>\n If your business falls within the VAT criteria, you must register for VAT<\/a> and ensure compliance to avoid penalties. To make your VAT registration easier, invest in Fortius Consulting Services<\/a>'<\/strong> VAT services<\/strong> in the UAE<\/strong>.VAT Registration & Amendment Processes: What to Do & How to Do It<\/h2>\n
Amending VAT Registration<\/strong>s<\/h3>\n
\n
\n
Procedure to Make Amendments to the VAT Registration<\/strong><\/h3>\n
\n
\n
Procedure for Changes Which Require FTA Approval<\/strong><\/h4>\n
\n
\n
\n
\n