- VAT Accounting
- 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
- 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.
VAT Rate On Oil And Gas Industry
VAT Rate On Healthcare Industry
VAT Rate on the Real Estate Industry
VAT Rate on the Gold, Silver, and Platinum Jewelry Investment.
VAT Rate on the Insurance and Reinsurance.
VAT Rate on the Transportation
VAT Rate on the Financial Services
VAT Rate in Telecommunication and Electronics Services.
VAT Rate on the Govt. Activities.
VAT Rate on NGOs
VAT Rate on Free Zones
VAT Rate on Others