UAE VAT Registration Assistance & Tax Consultancy

Ensure Your Business Complies with UAE Tax Regulations

At Easy Start Dubai, we ensure your business stays compliant with the UAE’s tax regulations , Let us handle the complexities of tax compliance while you focus on growing your business. Contact us today to get started!

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Simplify VAT Compliance with Expert Guidance

Our team of experienced and qualified accountants will help you easily understand and comply with the UAE’s Value Added Tax (VAT) policy. We’ll review your invoices, quotations, contracts, and purchase orders to determine if your business meets the criteria for VAT registration under one of the following categories:

1. Mandatory Registration

You must register for VAT if:

  • The value of your company’s taxable goods and services exceeds AED 375,000 over the previous 12 months.
  • The anticipated total value of taxable goods and services will exceed AED 375,000 in the next 30 days.

2. Voluntary Registration

You can opt for VAT registration if:

  • The value of your company’s taxable goods and services exceeds AED 187,500 over the previous 12 months.
  • The anticipated total value of taxable goods and services will exceed AED 187,500 in the next 30 days.

Let Easy Start Dubai help you navigate VAT requirements with clarity and efficiency. Contact us today to ensure your business remains compliant and positioned for success.

Our VAT & Tax Consultancy

Tax Residency Certificates

Our tax advisors assist in securing individual or corporate tax residency certificates from the Federal Tax Authority (FTA), ensuring you benefit from UAE’s tax treaties.

FTA Portal and Documentation Support

From creating an online account on the FTA portal to preparing and submitting required documents in the mandated formats, our experienced accountants guide you through every step of the process seamlessly.

VAT Registration (TRN)

Our in-house accountants provide end-to-end assistance with VAT registration, including eligibility checks for VAT exemptions. Once the registration process is complete, we help you obtain your Tax Registration Number (TRN) certificate from the FTA.

Tax Consultations

Speak one-on-one with our qualified tax experts for customized tax planning. We ensure your business achieves efficient tax outcomes while staying compliant with all legal obligations.

VAT Returns

Our team prepares detailed quarterly VAT reports, helping you determine if you have VAT payable or refundable, so you remain compliant and up-to-date.

A Comprehensive Guide to VAT Compliance in Dubai and the UAE

The introduction of Value-Added Tax (VAT) in the UAE on January 1, 2018, marked a significant shift in the region’s tax landscape. VAT compliance is crucial for businesses operating in Dubai to avoid penalties and maintain legal standing. Here’s an in-depth guide to VAT compliance in Dubai and the UAE.

Why Start a Business in Dubai?

Dubai’s vibrant economy and government initiatives make it a prime destination for entrepreneurs. Key advantages include:

  • Tax Benefits: Zero personal and corporate income tax, with only a 5% VAT rate.
  • Free Zones: Enjoy 0% corporate tax, no customs duties, and 100% profit repatriation.
  • Strategic Location: A hub for international trade and commerce.

Understanding VAT in Dubai

What is VAT?
VAT is a consumption-based tax applied to the sale of goods and services. It’s collected at every stage of the supply chain and ultimately paid by the end consumer.

Key Features:

  • Flat 5% rate on most goods and services.
  • Managed and regulated by the Federal Tax Authority (FTA).
  • Exemptions and zero-rated goods exist for specific industries.

History and Purpose of VAT in Dubai

VAT was introduced in Dubai to diversify government income and reduce reliance on oil revenue. It funds public services like healthcare, infrastructure, and waste management.

VAT Categories

  1. Standard Rate (5%): Applies to most goods and services, including retail, dining, and entertainment.

  2. Zero-Rated VAT: Businesses charge 0% VAT but must still register and file returns.

    • Exports outside the GCC.
    • International transportation.
    • Crude oil, natural gas, and precious metals (e.g., gold with 99% purity).
    • New residential properties sold within three years of construction.
    • Specific healthcare and educational services.

  3. VAT Exemptions: No VAT is charged or collected.

    • Financial services (e.g., loans, insurance).
    • Supply of residential properties (except new constructions).
    • Local public transportation (land, water, air).

VAT Registration Requirements

  1. Mandatory Registration:

    • Businesses with taxable supplies exceeding AED 375,000 annually.

  2. Voluntary Registration:

    • Businesses with taxable supplies or imports above AED 187,500 annually.

  3. Exempt Businesses:

    • Those offering exclusively exempt supplies are not required to register.

Steps to VAT Compliance in Dubai

  1. Register for VAT

    • Create an account on the FTA e-service portal.
    • Provide necessary documents like trade license, contact details, and bank account information.
    • Obtain your Tax Registration Number (TRN) upon approval.

  2. Track Taxable Supplies

    • Maintain accurate records of taxable and exempt supplies.
    • Monitor thresholds to ensure timely registration.

  3. Issue Tax Invoices

    • Include TRN, VAT amount, and total payable on every invoice.

  4. File VAT Returns

    • Submit returns quarterly or monthly (depending on turnover) through the FTA portal.
    • Provide details of sales, purchases, input VAT, and output VAT.

  5. Pay VAT

    • Settle VAT liability online via credit card, eDebit, or bank transfer.
    • Late payments incur penalties of up to 300% of the unpaid amount.

Penalties for Non-Compliance

Failure to comply with VAT regulations can result in:

  • AED 1,000 for the first late filing, increasing to AED 2,000 for subsequent offenses.
  • 2% penalty on unpaid VAT for the first 7 days, followed by 4% monthly until it reaches 300%.

Benefits of VAT Compliance

  • Avoid hefty penalties and maintain your business license.
  • Build credibility with clients and partners by operating transparently.
  • Access input tax recovery, reducing overall tax liability.

How Easy Start Dubai Can Help

Navigating VAT compliance can be complex, but our team of experts simplifies the process.

Our Services Include:

  1. VAT Registration: Assistance in registering your business with the FTA and obtaining a TRN.
  2. Tax Consultancy: Customized advice for efficient tax planning.
  3. VAT Filing: Preparation and submission of accurate quarterly or monthly VAT returns.
  4. Input VAT Recovery: Guidance on reclaiming VAT paid on business expenses.
  5. Compliance Support: Ensure your business meets all legal requirements and avoids penalties.

Conclusion

VAT compliance is essential for businesses operating in Dubai. Understanding your obligations and adhering to the regulations can save you from penalties and enhance your business reputation.

Ready to simplify VAT compliance for your business? Contact Easy Start Dubai today to schedule a consultation with our tax experts. Let us handle the complexities while you focus on growing your business!

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