VAT Certification in Dubai

Value Added Tax (VAT) is a consumption tax which is applicable to the cost of goods or services throughout the manufacturing and distribution process.

Let’s understand VAT better through an example, let’s assume you own a shoe factory. The shoe fabric company adds VAT and sells it to the shoe manufacturer. The shoe manufacturer then adds a VAT and sells shoes to the store. While selling the shoe, the store again adds a VAT.

So, VAT is an extra charge which adds to the cost of items. This helps the government generate funds for public welfare.

Details About Value Added Tax in Dubai

Let’s understand some facts about the VAT in UAE -

1. VAT is applicable at the rate of 5% in UAE.
2. The FTA charges 0% taxes on certain goods and services. 
3. Companies with an expenditure of AED 187,500 (yearly) can register for VAT.
4. Businesses earning more than AED 375,000 (currently) must register to VAT with the Federal Tax Authority (FTA)
5. If the seller is registered with the FTA, they will receive a tax credit or reimbursement on the VAT paid while purchasing. 

VAT Certification in Dubai

Getting a VAT certification in Dubai is not mandatory. However, securing a VAT certificate gives businesses an upper hand as all their transaction details are available.

The certification is offered after completing the VAT training course. This course is offered by various agencies. The training involves operational factors of buying, selling, import, export, input and output VAT.

This certificate is in demand and takes 2-3 weeks to obtain. Once you get the UAE VAT certificate, you will have all the information and skills to handle the challenges associated with VAT compliance.

Benefits of VAT Certification in Dubai

The VAT certificate is in high demand all over the UAE. Read about its advantages below:

1. High Credibility and Client Trust

The VAT certificate shows the business’s promise to follow the VAT rules. The possession of a VAT certificate will enable the clients to make an informed decision when looking to associate with the business.

2. Increased Productivity and Reduced Errors

To obtain the VAT certificate, you have to undergo an intensive training programme. This programme will equip you with a thorough knowledge of the calculations, bookkeeping and return files.

After understanding this process, you will be able to reduce errors and increase productivity.

3. Competitive Advantage

The VAT certificate is beneficial as it gives you an edge over your competitors. The knowledge you gain will help in reducing the chances of receiving penalties set by the FTA.

Individuals with this knowledge help their businesses grow due to better decision-making skills learnt during the programme.

Documents Required to Obtain the UAE VAT Certificate

To secure the certification, you must follow the steps and submit the necessary documents to the authority. The documents are mentioned below -

1. Passport
2. Emirates ID
3. Trade License
4. VAT Registration Number
5. Bank Information of the Applicant
6. Contact Information of the Applicant
7. Memorandum of Association (if applicable)
8. Signed Declaration of Turnover (previous year)
9. Details of your Company (Address, activity, etc.)

How to Obtain a UAE VAT Certificate?

You must follow this procedure for securing your VAT certificate in Dubai:

1. To secure the VAT certification, you will need to log in into Emaratax by filling in details of your Emirates ID or your FTA account.
2. Next, register your company for VAT by providing the necessary documents.
3. Undergo the training process through an esteemed institution. After completion, you will receive a certificate from the institution. 

Note - You can reach out to Commitbiz for any clarifications

Now you have understood the details for getting the VAT certificate in Dubai. It’s time to secure the certificate to fulfil your business dreams. Book a consultation call with us now. We will help you in getting your VAT certificate.