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VAT Service
In UAE

Overview

VAT in UAE

Whenever a business operates, claiming for VAT returns turns out to be a mandate. Realizing this, recently the GCC countries have entered into the agreement of implementing VAT and agreed to initiate the implementation by 1st Jan 2018 with a tax-rate levied at 5%. Being registered under the VAT law defines that your business is recognized by the government. Now, in order to ease the process, certain categorization has been made similar to that of an income-tax slab, there exists a VAT slab VAT payment.

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Slabs for VAT Registration
in UAE

Businesses having taxable supplies and imports above AED 375,000
Mandated to apply for VAT registration
Businesses having taxable supplies and imports between AED 187,500 and 375,000
Can voluntarily apply for VAT registration
Businesses having taxable supplies and imports less than AED 187,500
Not required to apply for VAT registration

TRN
(Tax Registration Number)

Tax Registration Number, or TRN, is a 15-digit number allotted to business entities that complete the application process and register under the VAT law. It can be regarded as the identification number for the registration of VAT with Federal Tax Authority (FTA).

A business entity in Dubai or the rest of UAE has to go through VAT registration process in the e-portal launched by FTA (www.tax.gov.ae). In order to obtain the TRN, the company has to submit the application along with the copy of essential documents like trade license, share certificates, MOA and AOA, Power of Attorney (if any), passport and Emirates ID of the shareholders and managers, customs registration documents, financial information such as revenue/turnover break-up for last 12 months, etc.

Why Cosmo?

Cosmo is a platform that has been dealing in providing accounting and taxation services to start-ups and established businesses at a global level. We have a large number of satisfied clients at a global reach ranging from small and medium to multi-national businesses. We have been providing one of the best VAT consultancy services in UAE. If you are looking for a VAT consultant, you can count on us. To initiate your steps towards VAT filing, do contact us – we’d be glad to assist you.

FAQ

Should I Register?

Mandatory registration should be done by companies whose expected turnover is over AED 375, 000

How to Register?

You can register through the Federal Tax Authority portal or simply contact us for a hassle-free registration

How will VAT impact my business?

VAT will demand you to structure your business, organize your finance and revise your selling prices, have a professional and effective accounting team

What is the deadline for VAT return filing and payment? Are the dates for payment and return different?

The deadlines for VAT return filing and payment are specified in the TRN Certificate, and these are either monthly or quarterly based. The due date for submission of VAT return and payment of due tax is the 28th day after the tax period closing (monthly or quarterly).

Is there any separate treatment of VAT for free zone companies?

The FTA has issued a list of Designated Zones in the UAE, and only the free zones that are announced as Designated Zones shall follow special provisions, as published by the FTA. A Designated Zone has special treatment for supply of goods, for instance, supply of goods within a Designated Zone shall be treated as out of scope - with no VAT applicable. But services supplied by Designated Zone companies are in the same line as for Mainland Companies, and shall follow the same rules as applicable for a Mainland Company, i.e., normally taxed at 5% unless exempt or zero-rated.

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