UAE VAT

The UAE introduced VAT on 1 January 2018, which applies to most goods and services at a standard rate of 5%, unless the supply is zero-rated or exempt. Our team of VAT experts can help you navigate the complex VAT rules and legislation, ensure timely filing of VAT returns, and minimize the risk of penalties and fines.

We provide a range of VAT services, including VAT registration, VAT return filing, VAT advisory, and VAT health checks (compliance reviews). Our team will work closely with you to understand your business and its unique VAT compliance needs.

With our VAT compliance services, you can focus on running your business, while we take care of your compliance obligations. We stay up-to-date with the latest VAT legislation, and our team will ensure that your business is always compliant with the law.

VAT registration

The mandatory VAT registration threshold for UAE businesses is AED 375,000. This means that if your annual taxable supplies have exceeded the mandatory threshold in the past 12 months, or the threshold is expected to exceed in the next 30 days, you are required to register for VAT and comply with all VAT obligations.

Voluntary registration can be done if your taxable supply is expected to exceed AED 187,500 in the next 30 days.

Two or more legal persons may apply to form a VAT group to the extent that certain criteria are fulfilled by each member of the VAT group.

The effect of a VAT group registration is that the members of the VAT group are treated as a single taxable person for VAT purposes. This means that:

• Supplies made between members of the VAT group will be disregarded for VAT purposes and therefore no VAT is chargeable on intra-group transactions;
• Only one VAT “Tax Registration Number” (“TRN”) is issued for use by the group;
• The VAT group submits only one tax return which summarises all supplies and purchases made by group members over the VAT period concerned; and
• One member of the VAT group is appointed as ‘representative member’ of the group.

All of the VAT obligations of the VAT group, and all supplies made and received by it, are deemed to be carried out in the name of the representative member.

Timeline to complete VAT registration

Generally, the estimated time to complete the application for the VAT registration by the tax authority is 20 business days from the date the completed application is received.

Documents required

The following information is generally required to support an application for VAT registration in the UAE:

• Valid trade licence(s)
• Articles of Association / Partnership Agreement
• Certificate of incorporation
• Documents / details regarding ownership
• Passport / Emirates ID of the authorized signatory(s), directors, managers and owners of the business
• Proof of authorization for the authorized signatory(s)
• Contact information of signatory(s), managers, owners
• Bank account details of the applicant

Depending on whether you are completing a mandatory, or voluntary VAT registration, other relevant documents may include:

• Revenue forecast with evidence (e.g., UAE purchase order or commercial invoice);
• Monthly turnover declaration for the specified periods that is signed and stamped by the authorized signatory on the entity’s printed letterhead;
• Supporting financial documents (e.g., contracts/ title deed / tenancy contracts);

Please note that accepted file types are PDF, JPG, PNG and JPEG. The individual file size limit is 5MB.

Don't wait until it's too late!

Our expert team at HSBM Global can assist you with VAT registration, ensuring you're correctly registered and compliant with VAT laws. We'll guide you through the registration process and help you understand your VAT obligations, so you can focus on running your business.

Don't let VAT registration and compliance stress you out - let us take care of it for you. Contact us today to learn more about our VAT services and how we can help your business remain compliant with the UAE VAT laws.

VAT returns

As a business owner, you know that filing VAT returns can be time-consuming and stressful. Not to mention, any errors in filing statutory returns can lead to hefty fines, penalties, and even damage to your reputation.

At HSBM Global, we offer expert VAT return filing services to ensure your returns are filed accurately and on time. We'll help you prepare VAT returns in respect of all of your taxable transactions for the specific period and make sure your returns are compliant with the UAE VAT legislation.

Our team of VAT experts stays up-to-date with the latest VAT regulations, so you don't have to. We'll guide you through the entire VAT return filing process, so you can focus on running your business.

Don't risk fines and penalties - let us take care of your VAT return filing.

Contact us today to learn more about our VAT services and how we can help your business remain compliant with the UAE VAT legislation.