Overview and Requisites for VAT Registration in Detail

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VAT and its Benefit to UAE Government and the Citizens

VAT RegistrationVAT is the acronym for Value Added Tax and it is the biggest type of tax reform for UAE until now. VAT implementation has to the development of a major steady income source for UAE government, as it uses the collected funds from VAT to develop public facilities and infrastructure. In simple words, amount collected from VAT plays a major role to boost the living standard of the country’s citizen.

Furthermore, VAT accounting in Dubai helps UAE government to reduce the overdependence on oil as a revenue source.

Aspects to Consider for VAT Registration

Before you should go forward to undergo VAT registration, as an applicant, you have to consider different aspects, which include

  • Registration as a mandatory option or voluntary option
  • Registration as a Standalone or as a Tax Group

Information and Documents Required to Undergo VAT Registration in UAE

Jitendra Chartered AccountantsBefore you should apply for VAT registration, you have to keep the documents mentioned here ready with you. This is because; you have to upload soft copies of each of the mandatory documents along with your VAT application. These include

  1. Documents capable to identify your authorized signatory, that include your ID you use in United Arab Emirates and your passport copy.
  2. Next, you have to produce the copy of your company’s trade license.
  3. Along with this, you have to produce other official documents, which authorize you as an individual or as an entity to perform business activities within the United Arab Emirates. These include your power of attorney, articles of association and certificate of incorporation.
  4. Detailed description of your various business activities
  5. You have to mention your sales and turnover details for the previous 12months or 1year period in AED currency.
  6. Other than this, you have to show and upload supporting document highlighting your 12-month period sales and the turnover you may expect in the upcoming 30days.
  7. Next, you have to highlight estimated value of your exports and imports for one-year period to and from each GCC countries respectively.
  8. You have to mention about your expected deal with any GCC customer or supplier
  9. If applicable, you should show supporting documents related to custom registration in each of the United Arab Emirates countries.
  10. Finally, you have to provide details about your bank account in Dubai or in any other area of UAE.
  11. You can also check how to claim corporation tax return from accounting website.