Value Added Tax is an indirect tax which will be levied at every stage of consumption. Basically, it is the cost to the end consumer. Business entities paying taxes are eligible to claim the refund from the government. It is mandatory for the business entity to obtain VAT registration in case its annual turnover exceeds the threshold limit of AED 375,000. Further, the Voluntary registration can be sought when the annual supplies are less than the mandatory registration threshold but more than voluntary registration threshold of AED 187,500/-.In addition to this, the business entity whose annual turnover is less than AED 187500/- is not required to obtain VAT registration in Dubai.
Once the request for VAT registration is being made a certificate for registration is granted. Moreover, a unique Tax registration number is granted to every business enterprise seeking the VAT registration. One crucial thing to be kept in mind is that the registration process cannot be completed till the documents specified by the federal tax authority are submitted.
In order to complete the procedure of obtaining VAT registration, every applicant is required to file the documents as specified by the federal tax authority. The various documents which are required to be filed by the applicant for VAT registration are as follows-
- Trade License
- Certificate of Incorporation/ Registration Certificate (as applicable)
- Articles of Association/ Partnership Agreement or any other document showing ownership information about the business
- Copy of Passport and Emirates ID of all Owners
- Details of manager
- Copy of Passport and Emirates ID of the Manager
- Physical office location of the Business
- Contact details
- Bank Account details
- List other business(es) of the directors/ partners in UAE in last five years along with their Trade License copies
- Declaration about
- Business activities of the applicant
- Actual or estimated financial transaction values
- Turnover in last 12 months with supporting documents
- Details about expected turnover in next 30 days
- Details about expected exempt supplies
- Imports and Exports
- GCC activities of the Business
- Details about Customs registration information
Any person is empowered to submit the above-mentioned documents only if the person or the company has already been registered online. After the completion of the online registration process and the fee payment, the applicant will be allowed to submit his documents. After the completion of the process and the verification of the documents, the VAT certificate will be provided to the applicant.
Although the amount of VAT that should be paid is specified there are some situations in which the VAT can be refunded. There are no special exceptions for any individual or a company. The most common scenario in which the refund will be provided is when the international authorities or obligations require the government for the refund.