VAT Registration Of Foreign And Local Company Branches In UAE

1. VAT Registration Of Foreign And Local Company Branches InUAE December 28,2022 The UAE Federal Tax Authority (FTA) announced the soon-to-commence registration of foreign and local company branches in the UAE for value-added tax (VAT). All businesses operating in the UAE, including foreign and local company branches ought to register for VAT if their annual taxable supplies meet the set threshold. VAT registration in the UAE is mandatoryforallbusinessestobeabletobuyandsellproductsorservices.Ifyourbusiness has branches located both in the UAE and abroad, you need to ensure that each of your branchesisregisteredforVATbeforethecommencementoftrading. WhatisVATandHowisItImposedintheUAE? Value Added Tax (VAT) is an indirect tax applied to the value of goods and services consumedinDubai.ItwasintroducedbytheGovernmentofDubaiin2018withtheaimof diversifying revenue sources, reducing dependence on oil revenues, and creating a more transparent business environment. In Dubai, VAT is charged at a standard rate of 5% for most goods and services within the Emirate. Certain products like essential food items, education,andhealthcareareexemptfromtaxationwhileothersmayattractreducedrates or be subject tozero-rating. VAT Registration in UAE for LocalCompanies

2. Businesses registered in Dubai must register for VAT under certain conditions: if they have taxable supplies that exceed AED 375,000 annually; or voluntarily if their taxable supplies are less than AED 375,000. Businesses must also register for VAT within 30 days of crossing theAED375,000thresholdorfaceafine.CompaniesregisteredinDubaimustappointatax agent who is responsible for managing all tax compliance activities, filing returns, and payingtaxestotheFederalTaxAuthority(FTA). ReadMore:VATRefundForVisitingUnregisteredForeigner BusinessesInUAE VAT Registration Process inUAE Foreigncompanies’branchesoperatingintheUAEarerequiredtoregisterforVATthrough the Federal Tax Authority (FTA). The VAT registration process is simple and can be completed in a fewsteps. First, you will need to obtain the Federal Tax Authority ID number by providing your businessdetailssuch as thename,address,tradelicensenumber,andotherrelevant information. OnceyouhavetheFTAIDnumber,youmustthenapplyforvatregistrationandprovidethe necessarydocumentstotheFTA.ThisincludesyourVATregistrationapplicationform,VAT returnforms,VATinformationsheet,andothernecessarydocuments.Itisimportantto notethatallthedocumentsmustbeinEnglishorArabiclanguage. Onceyouhavecompletedyourvatregistration,youwillreceiveavatregistrationcertificate. ThisVATregistrationcertificateshouldbekeptinasafeplace as itwillberequiredwhen filingvatreturnsandmakingvatpaymentstotheFTA. VAT AccountingRequirements: All businesses registered for VAT in the UAE have to maintain proper records of incomes, expenses, and vat payments. This includes maintaining separate accounts for vat payments andvatrefundssothattheycanbetrackedeasily.TheFTAhassetoutspecificguidelineson whatdocumentsneedtobekeptinordertocomplywithvataccountingrequirements. Furthermore,VAT-registeredbusinessesmustalsosubmitVATreturnstotheFederal Tax Authority on a regularbasis. Other VATRequirements: In addition to VAT registration and VAT accounting, there are other VAT requirements that businesses need to be aware of. For example, VAT registered businesses must display vat invoices when selling goods or services, and they must also keep records of all VAT payments made to the FTA. Additionally, companies should ensure they comply with the latestVATregulationsinordertoavoidfinesandpenaltiesfornon-compliance.Overall,VAT registration in UAE can be a complex process for both local and foreign companies, however careful planning and accurate record-keeping should ensure that compliance is achieved with minimal disruption. Working with an experienced VAT advisor or tax agent can ensure that VAT obligations are met efficiently and effectively. We offer VAT consulting servicestogetherwithusefulassistanceforyourcompany. AvailofTopVATConsultationintheUAE

3. Essentially,corporationsoughttoengagewithtrustedVATconsultantsinUAEtoenforce taxcomplianceandtoaverttheriskofincurringpenaltiesandfinesfornoncomplianceto theFederalTaxAuthorityregulationsandstandards.Thus,getintouchwithustodayand weshallbehappytoassistyou!