VAT Accounting
2020-12-29
Mr. Wasim Firoz

How To Apply For VAT Registration Online In UAE?

VAT (Value Added Tax)

On 1st Jan. 2018 VAT was Introduced in UAE. VAT is a new source of income for the UAE government. Generally, The VAT rate is 5% and applies one of most goods and services and for a few goods and services VAT rate is 0%. VAT Income is used to provide high-quality service in public.

It also helps the UAE government to accomplish the vision and minimize the dependence on oil, other hydrocarbons, and etc. VAT is a common indirect tax that is imposed in many countries. VAT is imposed in each stage of the supply chain. VAT is not borne by the businesses because they claim the Tax. It is bear by the end-user of the goods and services. Businesses collect the VAT from the customers and remit the same to the UAE government.

Importance on VAT

VAT is collected at every stage of selling goods and services. VAt is a must to charge on every transaction but In some goods and services vat rate is charged 0%. VAT reduces the operation of the black market in the UAE. After the implementation of the VAT, the UAE Government earns an extensive amount through the VAT. After this tax, Every business has become accountable, which positively affects the economy. Business should follow the rules and regulation of regarding the vat otherwise have to meet with the plenty. VAT is very important for a better economy in the UAE and the development of the emirates.

Registration For VAT In Dubai

Businesses that have a turnover exceeding Dh375,000 must register for VAT. Which businesses have a turnover below Dh375,000 but have a turnover exceeding Dh187,500 can register for VAT as a voluntarily. VAT is applied equally on the UAE mainland and in the free zone on the tax registered businesses. Tax registered businesses can recover the VAT from the government that they have paid to their suppliers.

How to register for VAT In Dubai?

Businesses can easily register for VAT online by FTA online portal. FTA (Federal Tax Authority) invites the business to register VAT online. Before applying and starting registration, Businesses should know how to apply for VAT registration and understand the about details required to complete the process online. Online Vat registration helps businesses to prepare themselves in advance.

First, step for VAT Registration

You have to log in to your e-Service Account. If you have no you can create your e-Service Account. Click Here to sign up.

After logging in to your e-Service Account. You are able to see VAT Registration, As we mentioned below.

Then click on the Register for VAT, After that You will go through the Registration guide.

The Guide helps you in the understanding of important aspects in a proper way for online VAT registration online in the UAE. It guides how to register and what is important and how to register. So you should read all sections of the starting guide carefully. So, You can understand all the steps. After reading the guide, you will click on Proceed. After clicking, You will navigate to the VAT registration form.

The online VAT registration form has 8 sections, that are mentioned below.

About the Applicant
Details of the applicant
Applicant Contact Details
Applicant Bank Details
Business Relationship
About the VAT registration
Declaration
Review and Submi

After completing all the 8 Section. Hit the submit button for Approval. After getting approval, congratulations you have successfully registered.

List of the VAT Rate in different industries.

In the UAE, VAT has three different Categories.

5% VAT
Exempt VAT
0% VAT

VAT Rate On Education Industry.

Private and Government School (Excluding Higher Education) and related good and services	0% VAT Rate
Higher education Provided by the Private institute and related good and services	5% VAT Rate
Higher Education Provided by the Govt. and related good and services	0% VAT Rate
Pre School Education	5% VAT Rate
School Uniforms	5% VAT Rate
Stationery Products and School Uniforms	5% VAT Rate
Electronics Equipment	5% VAT Rate
School trips for recreation	5% VAT Rate

VAT Rate On Oil And Gas Industry

Crude Oil & Natural gas	0%
Other Oil and gas products including petrol at the pump	5% VAT Rate

VAT Rate On Healthcare Industry

Preventive and human treatment services including vaccination	0% VAT Rate
Other healthcare not for preventive and human treatment.	5% VAT Rate
Medical equipment and medicines	0% VAT Rate
Not listed Medical equipment and medicines in the cabinet decision	5% VAT Rate
Other Medical Supplies	5% VAT Rate

VAT Rate on the Real Estate Industry

Commercial building sale and rent	5% VAT Rate
completion after the construction first sale and rent of the residential property	0% VAT Rate
The first sale of the charitable building	0% VAT Rate
Bare land	Exempt
Hotels, motels, and serviced accommodation	5% VAT Rate
Sale of Non-Bare Land	5% VAT Rate
UAE Citizen building own home	5% VAT Rate (recoverable)

VAT Rate on the Gold, Silver, and Platinum Jewelry Investment.

99% tradable and pure in global markets	0% VAT Rate
<99% Pure	5% VAT Rate
Jewelry	5% VAT Rate

VAT Rate on the Insurance and Reinsurance.

Life insurance and reinsurance	Exempt
On all Insurance and reinsurance excluding life insurance and reinsurance	5% VAT Rate

VAT Rate on the Transportation

Domestic Passenger transportation in the UAE including flight.	Exempt
International transportation of passengers and good (including intra - GCC)	0% VAT Rate

VAT Rate on the Financial Services

Margin BAsed products	Exempt
Interest on forms of lending ( loans, credit card, finance leasing)	Exempt
Issue, Allotment or transfer of equity or debt security	Exempt
Products with explicit fees, commission, rebate, discount, or similar	5% VAT Rate

VAT Rate in Telecommunication and Electronics Services.

Wire and wireless telecommunications and electronics services

5% VAT Rate

VAT Rate on the Govt. Activities.

Sovereign activities	Considered outside VAT system
Not Sovereign activities	VAT Rate dependent on the good and services ignoring provider

VAT Rate on NGOs

Activities of foreign Govt. and international activities	Considered outside VAT system
Charitable Activities by the societies and associations of public welfare which are listed by the cabinet decision	Considered outside VAT system
Other Activities not for which are not business activities	Considered outside VAT system
Business activities are undertaken by the above organization	VAT Rate dependent on the good and services ignoring provider

VAT Rate on Free Zones

Supplies of good between business in designated zones	Considered outside VAT system
Supplies of services between business in designated zones	VAT Rate dependent on the good and services ignoring provider
Supplies of good and services in non-designated zones	VAT Rate dependent on the good and services ignoring provider
Supplies of good and services from the mainland to designated zones or designated zones to mainland	VAT Rate dependent on the good and services ignoring provider

VAT Rate on Others

Export of goods and services to outside the GCC implementing States	0% VAT Rate
Activities Undertaken by employees in course of their employment, including salaries	Considered outside VAT system
Supplies between members of a single tax group.	Considered outside VAT system
Not mentioned above supplies	5% VAT Rate
Second-hand goods like used cars, antiques and etc	5% VAT Rate on the profit margin