VAT Registration For New Company In UAE

If a new company’s taxable supplies and imports exceed AED 375,000, it must register for VAT, which is needed in the UAE.

Furthermore, a new firm in the UAE may choose to register for VAT voluntarily if its supply and imports exceed the AED 187,500 voluntary registration threshold but are less than the mandatory registration threshold.

Similarly, if a company’s costs reach the optional registration level, they may voluntarily register. The latter voluntary registration option is intended to allow new businesses with no revenue to file for VAT.

VAT Registration For New Business In UAE With No Turnover

The majority of new business owners are concerned about “VAT registration for first-time entrepreneurs.” Before beginning operations, various types of businesses must get a VAT Registration Number. They are nevertheless able to register for VAT in certain cases provided they meet the standards specified below.

if their expenses exceed the AED 187,500 voluntary registration threshold.
If they expect their revenue to exceed the voluntary registration criteria of AED 187,500 in the next 30 days.

VAT For New Business In UAE

What Is The Process of VAT Registration For a New Company in UAE?

The majority of new business owners are concerned about “first-time entrepreneur VAT registration.” Various sorts of enterprises must obtain a VAT Registration Number before they may begin operations. They can still register for VAT in certain circumstances if they meet the requirements outlined below.

if their expenses exceed the voluntary registration threshold of AED 187,500.
If they expect their revenue to meet the AED 187,500 voluntary registration threshold in the following 30 days.

Please contact us if you need to register your new business for VAT.

VAT-Related Responsibilities Of Businesses

All businesses, even new ones in the UAE, must keep track of their financial activity and ensure that their financial records are correct and up to date. If a company’s financial records prove that it has a minimum yearly turnover, it must register for VAT. Companies that did not satisfy the bare minimum and believe they should not have been registered for VAT should keep their financial records just in case. If they are required to register for VAT in the UAE, they must provide a complete history of financial reports.

Why Do I Need VAT Registration for a Startup Business in the UAE?

Because your company is new, you may be asking if you need to register for VAT in the UAE.

There are certainly various reasons for a new business in the UAE to register for VAT.

For VAT registration, the Federal Tax Administration has specified turnover thresholds. If your earnings surpass that threshold, you must register for VAT. If you do not comply on time, you may incur penalties.
If the IRS Registration number is not provided, the company’s reputation would suffer. If you do not provide a VAT Registration Number, certain suppliers and customers will be hesitant to do business with you, especially if you operate a B2B organisation.

VAT-Registered Businesses Generally:

They must charge VAT on any taxable goods or services they provide;
they are allowed to claim any VAT they paid on goods or services used in the course of their business;
they are required to maintain a variety of books and records that the government can use to verify that they are doing things correctly.
Once you have registered for VAT in the UAE, you must maintain track of all your financial transactions and submit the amount of VAT you have collected and charged to the government on a regular basis.
If you charged more VAT than you paid, you must pay the difference to the government. If you paid more VAT than you collected, you can claim the difference.