Dubai: «The Gulf»
The UAE began implementing Value Added Tax (VAT) on January 1, 2018, which is an indirect tax of 5% imposed on most goods and services supplied at every stage of the supply chain.
The cost of this tax is borne by the end consumer, and the companies calculate and collect the taxes for the government.
Companies and institutions pay the tax they collected from customers to the government, and in some cases these companies may recover the tax they paid to their suppliers.
Thus, the net result of tax revenue received by the government is that “value added” through the stages of the supply chain.
Each institution can register for VAT through the electronic services section on the Federal Tax Authority website.
There are five documents required for VAT registration, which you should know:
1. Commercial/Valid Business License.
2. The passport / Emirates ID of the authorized signatory.
3. Proof of authorizing the authorized signatory.
4. Disclosure of the monthly revenues for the periods mentioned on the letterhead of the entity stamped and signed by the authorized signatory, and attach supporting financial documents such as invoices, purchase orders, property title deeds and lease contracts.
5. A copy of the legislation establishing the entity in case the registration request is related to a federal/local government entity.