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  • Corporate Tax in UAE Free Zone

    Corporate Tax in UAE Free Zone

    Recently, the eagerly awaited Corporate Tax-Free Zone rulings have been unveiled. Specifically, on 30 May 2023, Cabinet Decision No. 55 of 2023 was enacted, aiming to determine the Qualifying Income for the Qualifying Free Zone Person in accordance with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (referred to as the “CT Law”). 

    In addition, on 1 June 2023, the Ministry of Finance released Ministerial Decision No. 139 of 2023, which outlines the Qualifying Activities and Excluded Activities for the purposes of the CT Law. One should read this decision in conjunction with Cabinet Decision No. 55 of 2023 and CT Law to fully grasp the proposed regulations. 

    However, This blog post will delve into the details for those interested in learning more about UAE corporate tax-free zones. So, let’s continue reading to understand the subject comprehensively. 

    What is Corporate Tax UAE Free Zone?

    The UAE corporate tax-free zone Law specifies the taxation rates for a Qualifying Free Zone Person (“QFZP”) as follows: 

    1. So, Qualifying Income is taxed at 0% (zero per cent). 

    2. Taxable Income that is not considered Qualifying Income is taxed at 9% (nine per cent). 

    Definition of Qualifying Income in UAE Corporate Tax-Free Zone

    The much-anticipated clarification on Qualifying Income within the corporate tax UAE free zone has been provided, encompassing the following aspects: 

    • Therefore, Income generated from transactions with other Free Zone Persons, except for income arising from Excluded Activities. 
    • So, Income derived from transactions with a Non-Free Zone Person; Applicable solely to Qualifying Activities that do not fall under the category of Excluded Activities. 
    • However, Any other income will be considered Qualifying Income, provided the QFZP meets the de minimis requirements. 

    Activities Excluded from UAE Corporate Tax-Free Zone

    The following activities are considered Excluded Activities; Are not eligible for the benefits of the Corporate Tax UAE Free Zone: 

    • Transactions with natural persons (with exceptions in Qualifying Activities such as shipping and aircraft operations, fund, wealth, and investment management). 
    • Moreover, Regulated banking, finance, leasing, and insurance activities. 
    • So, Ownership or exploitation of intellectual property assets. 
    • Therefore, Ownership or exploitation of immovable property; Except for transactions with Free Zone Persons related to commercial property within a Free Zone. 

    Qualifying Activities within UAE Corporate Tax-Free Zone

    The Qualifying Activities eligible for the Corporate Tax UAE Free Zone include: 

    • Manufacturing and processing of goods or materials. 
    • Holding of shares and other securities. 
    • Ownership, management and operation of ships. 
    • Regulated reinsurance and fund/wealth management, investment management. 
    • Headquarters, treasury and  financing services to related parties. 
    • Financing and leasing of aircraft  
    • Logistics. 
    • Distribution of goods in or from a designated zone 
    • Ancillary activities related to above 

    Note: To qualify as a Qualifying Activity within Dubai Airport Freezone, the distribution of goods within or from a designated zone must adhere to specific conditions.

    Qualifying Free Zone Person Eligibility and Tax Benefits

    So, Being a Qualifying Free Zone Person enables a Free Zone entity to enjoy a 0% Corporate Tax rate exclusively on their Qualifying Income. To qualify as a Qualifying Free Zone Person, the following criteria must be met by the taxable free zone person: 

    1.”Maintain Adequate UAE Presence: The Free Zone Person must have a substantial operational presence in the UAE.” It can be proven with adequate number of employees, assets and office space in UAE free zone. 

    2. Derive Qualifying Income: The Free Zone Person’s income must be Qualifying Income, either in full or in part.

    3. No Election for Standard Corporate Tax: Therefore, The Free Zone Person cannot choose the standard Corporate Tax rates. 

    4. Comply with Transfer Pricing Requirements: The Free Zone Person must comply with Corporate Tax Law’s transfer pricing regulations.

    The Minister may prescribe additional conditions for Qualifying Free Zone Person status. 

    If a Qualifying Free Zone Person doesn’t meet conditions or opts for regular Corporate Tax; they’ll face standard Corporate Tax rates from the Tax Period they fail to comply.

    De Minimis Requirements for Qualifying Free Zone Person Status

    To be recognized as a Qualifying Free Zone Person, certain de minimis requirements must be met. So, These requirements encompass the following points: 

    1. Threshold for Non-Qualifying Revenue: The de minimis requirements are satisfied if non-qualifying revenue constitutes at most 5% of the total revenue or AED 5,000,000, whichever amount is lower. 

    2. Definition of Non-Qualifying Revenue: Non-qualifying revenue includes income generated from Excluded Activities or activities that do not fall under Qualifying Activities. Non-qualifying income of Qualifying Free Zone Person is taxable @9% 

    3. Exclusions from Revenue Calculation: Specific revenue components are excluded from both the non-qualifying and total revenue calculations. So, This includes revenue attributable to certain immovable property located within a Free Zone (excluding commercial property transactions with Non-Free Zone Persons). So, Revenue related of Foreign Permanent Establishment or Domestic Permanent Establishment is also exempt subject to certain conditions 

    Consequences of Failing to Meet Qualifying Conditions

    The implications of failing to meet the qualifying conditions set forth in the UAE Corporate Tax Law and these Decisions are as follows:

    1. Taxable Person Status: If a Free Zone Person does not satisfy any of the qualifying conditions, they will be considered a Taxable Person at standard rate

    2. Corporate Tax Rate: As a Taxable Person, the non-qualifying Free Zone entity will be subject to standard rate of 9% on taxable revenue more than AED 375,000.

    3. Minimum Duration: The Taxable Person will lose their qualifying free zone status and won’t be eligible for a minimum of 5 years, starting from the tax year of disqualification.

    Free Zone Persons must adhere to the qualifying conditions to maintain their status and benefits as Qualifying Free Zone Persons under the UAE Corporate Tax Law. 

    Domestic Permanent Establishment

    The Decisions introduce the concept of a Domestic Permanent Establishment (“PE”), which comes into play when a Qualifying Free Zone Person establishes a place of business or any other form of presence outside the Free Zone within the State. 

    The income attributable to the Domestic PE will be calculated as if it were a distinct and independent entity, subjecting it to Corporate Tax at standard rate of 9% on taxable income more than AED 375,000. Additionally, this Domestic PE status will not disqualify the Qualifying Free Zone Person from enjoying the 0% Corporate Tax rate on Qualifying Income. As mentioned previously, it will not be considered in the de minimis test. 

    In most cases, a mainland branch, workshop, or management office of a Qualifying Free Zone Person will be considered a Domestic PE, resulting in the PE income being taxed at a rate of 9%.

    Ensuring Adequate Substance in the Free Zone

    To ensure adequate substance as a Qualifying Free Zone Person, the following guidelines must be followed: 

    1. Generating Activities in the Free Zone: The Qualifying Free Zone Person should conduct its primary income-generating activities within or from the Free Zone. 

    2. Maintaining Adequate Assets & Qualified Employees: It is essential to possess sufficient assets and have an adequate number of qualified employees in proportion to the level of activities carried out within the Free Zone. 

    3. Meeting Adequate Operating Expenditures: The Qualifying Free Zone Person should incur adequate operating expenditures that align with the extent of its operations and revenue within the Free Zone. 

    Therefore, A Qualifying Free Zone Person can outsource activities to a Related Party or a third party if these activities remain supervised. This provision allows businesses to streamline operations efficiently while maintaining the necessary substance to comply with the Free Zone regulations. 

    Key Takeaway and Next Steps!

    The recently released Decisions significantly shift the UAE CT framework for Free Zones. So, Implementing a de minimis threshold could potentially result in Free Zone entities facing full taxation under the new regulations. 

    So, With the Corporate Tax regulations for Free Zones clarified, companies should promptly evaluate their readiness for registration. However, Shuraa Tax Consultants, with a team of skilled chartered accountants, is ready to address any UAE corporate tax-free zone inquiries.

    For further tax assistance, CT impact analysis, CT registration and CT return filing; feel free to contact us via email at Call +971 508912062 or send an email to info@shuraatax.com get in touch with us. We are here to support you throughout the process.

  • How to Register Corporate Tax in UAE in 2026

    How to Register Corporate Tax in UAE in 2026

    The United Arab Emirates (UAE) introduced a corporate tax system to strengthen its economy and bring its tax policies in line with global standards. As of June 1, 2023, businesses in the UAE are required to pay a 9% corporate tax on profits above AED 375,000. While this change may seem new to many, it plays a key role in supporting the country’s growth and creating a more transparent business environment.

    In 2026, it’s more important than ever for companies and individuals doing business in the UAE to complete their corporate tax registration on time. Failing to register within the deadline set by the Federal Tax Authority (FTA) can result in penalties and legal issues.

    Additionally, starting January 1, 2025, the UAE will impose a 15% minimum top-up tax on large multinational companies with consolidated global revenues of €750 million or more, in line with the OECD’s global minimum tax agreement.

    Therefore, we will guide you through everything you need to know about how to register for corporate tax in UAE in 2026. We’ll explain who needs to register, what documents are required, and the simple steps to complete your registration.

    What is Corporate Tax in UAE?

    Corporate Tax (CT) is a direct tax imposed on the net profits of businesses. Introduced by the UAE government, this tax aims to diversify national revenue sources and align the country’s tax system with international standards.

    The implementation of corporate tax also enhances transparency and supports the UAE’s economic growth by ensuring that businesses contribute fairly to the nation’s development.

    UAE Corporate Tax Rates

    The corporate tax rates in the UAE are structured to support small businesses while ensuring larger entities contribute appropriately:

    • 0% on taxable income up to AED 375,000
    • 9% on taxable income exceeding AED 375,000

    This tiered approach encourages entrepreneurship and supports the growth of small to medium-sized enterprises.

    Exemptions and Exceptions

    Certain entities and income types are exempt from corporate tax in the UAE:

    • Government Entities: Federal and Emirate-level government bodies.
    • Government-Controlled Entities: Businesses wholly owned by the government.
    • Extractive and Non-Extractive Natural Resource Businesses: Companies involved in the extraction and exploitation of natural resources.
    • Qualifying Public Benefit Entities: Organizations serving the public interest.
    • Qualifying Investment Funds: Funds meeting specific regulatory criteria.
    • Pension or Social Security Funds: Both public and private funds under regulatory oversight.
    • Wholly Owned UAE Subsidiaries: Subsidiaries of exempt entities.

    Additionally, businesses operating in free zones may benefit from a 0% tax rate on qualifying income, provided they meet certain conditions, such as maintaining adequate substance and complying with transfer pricing rules.

    Who Needs to Register for Corporate Tax in UAE?

    UAE corporate tax registration is mandatory for various entities and individuals engaged in business activities.

    1. Mainland Companies

    All businesses operating in the UAE mainland, including Limited Liability Companies (LLCs), Public Joint Stock Companies (PJSCs), and other legal entities.

    2. Free Zone Entities

    Companies established in UAE Free Zones must register for corporate tax, even if they qualify for a 0% tax rate on certain income.

    3. Natural Persons (Individuals)

    Individuals conducting business activities in the UAE, such as freelancers or sole proprietors, must register for corporate tax if their annual turnover exceeds AED 1 million.

    4. Branches of Foreign Companies

    Foreign companies with a permanent establishment or a fixed place of business in the UAE are obligated to register for corporate tax.

    5. Non-Resident Juridical Persons

    Foreign legal entities that have a permanent establishment or derive income from the UAE are subject to corporate tax and must register accordingly.

    6. New Businesses

    Companies incorporated, established, or recognized in the UAE after 1 March 2024 must complete their corporate tax registration within three months from the date of incorporation.

    Failing to register for corporate tax by the specified deadlines can result in an administrative penalty of AED 10,000.

    When to Register for Corporate Tax in 2026?

    The deadlines for corporate tax registration in the UAE depend on your business type, incorporation date, and residency status.

    Resident Juridical Persons (Companies)

    For entities incorporated before 1 March 2024:

    The registration deadline is based on the month your business license was issued:

    License Issuance Month Registration Deadline
    January – February 31 May 2024
    March – April 30 June 2024
    May 31 July 2024
    June 31 August 2024
    July 30 September 2024
    August – September 31 October 2024
    October – November 30 November 2024
    December 31 December 2024

     

    Note: The corporate tax registration deadlines were issued by the UAE Federal Tax Authority in 2024 and apply to entities established before 1 March 2024. Businesses incorporated after that date must register within 3 months of incorporation.

    If your company holds multiple licenses, use the one with the earliest issuance date to determine your deadline.

    For entities incorporated on or after 1 March 2024: 

    • UAE-incorporated entities (including Free Zone companies): Register within 3 months of incorporation.
    • Foreign entities effectively managed and controlled in the UAE: Register within 3 months from the end of their financial year.

    Non-Resident Persons

    Permanent Establishment: Non-resident entities with a permanent establishment in the UAE before March 1, 2024, must register within nine months from the date the permanent establishment was established.

    Documents Required for UAE Corporate Tax Registration

    To register for corporate tax in the UAE, businesses are required to submit specific documents as part of the registration process. These documents help the Federal Tax Authority (FTA) to verify the business and tax details. The general documents include:

    • Trade license
    • Emirates ID / Passport
    • Proof of address
    • Shareholder and director information
    • Corporate bank account details
    • Financial statements (Balance sheets, income statements, etc.)
    • VAT Registration Details (if applicable)
    • Declaration of taxable period
    • Other relevant documents

    Ensure all documents are clear and legible. The FTA accepts digital submissions in PDF or Word formats, with a maximum file size of 5 MB per document. All registrations must be completed through the EmaraTax platform.

    How to Register for Corporate Tax in UAE?

    Here’s a simple step-by-step process for registering corporate tax in the UAE through the Federal Tax Authority’s (FTA) EmaraTax portal.

    1. Access the EmaraTax Portal

    Visit the EmaraTax portal (https://eservices.tax.gov.ae). If you already have an account (e.g., for VAT purposes), log in using your credentials. If you’re a new user, create an account by registering with your email and contact details.

    2. Select or Add a Taxable Person

    Upon logging in, navigate to the “Taxable Person” section. If your business entity isn’t listed, click on “Add Taxable Person” and provide the necessary details.

    3. Initiate UAE Corporate Tax Registration

    Within the Taxable Person dashboard, locate the “Corporate Tax” tile. Click on “Register” to begin the registration process.

    4. Complete Business Information

    Fill in the required details about your business, including:

    • Trade license number and issue date
    • Legal entity type (LLC, Sole Proprietorship, Free Zone Company, etc.)
    • Company address and contact details
    • Financial year start and end dates

    5. Upload Required Documents

    Upload all the necessary documents. Make sure the documents are:

    • Clear and valid
    • In PDF or JPEG format (as per FTA guidelines)
    • Within the file size limits specified on the portal

    6. Add Authorised Signatory

    Input the details of the individual authorised to sign on behalf of the business. Upload necessary identification documents, such as Emirates ID or passport.

    7. Review and Submit Application

    Carefully review all entered information for accuracy. Acknowledge the declaration confirming the correctness of the provided information. Click “Submit” to finalise your Corporate Tax registration application.

    8. Application Review by FTA

    The FTA will review your application and may request additional information if needed. You can track the status of your application through your EmaraTax dashboard.

    9. Receive Corporate Tax Registration Number (TRN)

    Upon approval, you will receive your Corporate Tax Registration Number (TRN) via email and through your EmaraTax account. Save this number for future tax filings and correspondence with the FTA.

    If you’re unsure about any step or need professional assistance, consider reaching out to tax consultants like Shuraa Tax for smooth and hassle-free corporate tax registration in UAE.

    Benefits of Timely UAE Corporate Tax Registration

    Registering for corporate tax on time in the UAE isn’t just about compliance, it also brings several important benefits for your business. Here’s why:

    1. Avoid Penalties

    One of the biggest advantages of registering on time is avoiding fines. The Federal Tax Authority (FTA) imposes an AED 10,000 penalty for late registration.

    2. Build a Strong Business Reputation

    Timely compliance shows that your company is reliable and professional. It helps build trust with clients, investors, and government authorities.

    3. Smooth Tax Filing Later

    Early registration gives you more time to understand the process and get your records in order. It helps you prepare for corporate tax filing and payments without last-minute stress.

    4. Access to FTA Services

    Once registered, you gain access to FTA resources and support for tax-related matters. This includes help with tax returns, exemptions, and any clarifications.

    5. Compliance with UAE Tax Law

    Most importantly, timely registration keeps your business compliant with the UAE Corporate Tax Law, which is mandatory for all applicable entities.

    How Shuraa Tax Can Assist

    Registering for corporate tax in the UAE in 2026 is very important for every business. It helps you follow the law, avoid big fines, and stay ready for future tax filings. The sooner you register, the smoother the process will be, and you won’t have to worry about missing any deadlines. If you’re unsure about where to start or need help with the process, Shuraa Tax is here for you.

    Our team makes corporate tax registration easy and stress-free. We also offer help with VAT registration, accounting & bookkeeping services, and all other tax-related services in the UAE. Get in touch with us today and let us handle all your tax needs

    Contact us today for personalised assistance:

    📞 Call: +(971) 44081900
    💬 WhatsApp: +(971) 508912062
    📧 Email: info@shuraatax.com

  • VAT Group Registration in the UAE

    VAT Group Registration in the UAE

    Value Added Tax (VAT) is a tax applied to most goods and services in the UAE. Introduced in 2018 at a standard rate of 5%, VAT requires businesses to register, collect, and pay taxes to the Federal Tax Authority (FTA). While businesses usually register for VAT individually, companies that have multiple related businesses can choose VAT Group Registration to simplify their tax process.

    VAT Group Registration allows two or more businesses under the same ownership or control to register as a single entity for VAT purposes. This means transactions between these companies are not taxed, making VAT reporting and payments easier. It helps businesses reduce paperwork, save time, and improve cash flow.

    If your business has multiple related entities, VAT Group Registration can be a smart choice. So, let us explain what VAT group registration is, who can apply, how to register, and why it can be beneficial for your company.

    What is VAT Group Registration in UAE?

    VAT Group Registration is a system that allows two or more businesses with shared ownership or control to register as a single taxable entity under UAE VAT law. Instead of each company handling VAT separately, they operate as one unit for tax purposes. This helps businesses simplify VAT compliance, reduce paperwork, and avoid unnecessary tax on transactions between group members.

    Articles 9 & 10 of Cabinet Decision No. (52) of 2017 on the executive regulations of the Federal Decree-Law No. (8) of 2017 on VAT detail the rules for VAT Group Registration, including the requirement for common control and financial links between group members.

    Key features and benefits of VAT Group Registration:

    • One VAT Return for All – Businesses in the group file a single VAT return, reducing paperwork and chances of mistakes.
    • Transactions between registered group members are not subject to VAT, reducing unnecessary tax payments.
    • Saves Time and Effort – Managing VAT for multiple businesses becomes easier and less stressful.
    • Avoiding VAT on intra-group transactions can improve cash flow and reduce financial strain.
    • Businesses can optimize their VAT position and reduce compliance risks.

    How It Differs from Individual VAT Registration

    In individual VAT registration, each business must register separately, file its own VAT returns, and pay VAT on transactions with other businesses, even if they are related. This can lead to complex tax management and higher administrative costs.

    With VAT Group Registration:

    • Businesses within the group do not need to charge VAT on transactions between them.
    • Only one VAT return is filed for the entire group.
    • The group is treated as a single taxable entity, making tax reporting more efficient.

    UAE VAT Group Registration Conditions & Eligibility

    VAT Group Registration is not available to all businesses. To qualify, companies must meet certain criteria set by the Federal Tax Authority (FTA). Businesses that meet the following conditions can apply for VAT Group Registration:

    • The businesses must be related through shared ownership, meaning they have the same controlling entity or person. This could be a parent company and its subsidiaries or businesses owned by the same shareholders.
    • Each entity in the group must be registered for VAT or be eligible for VAT registration under UAE tax laws. If one entity is not eligible for VAT, it cannot be included in the VAT group.
    •  All businesses applying for VAT Group Registration must be operating and conducting taxable activities within the UAE. Companies that only have foreign operations without UAE-based transactions cannot be part of a VAT group.
    • Businesses with a history of VAT fraud, tax evasion, or serious non-compliance issues may not be eligible for VAT Group Registration.

    Relationship Requirements Between Group Entities

    To form a VAT group, the businesses must have a legal and financial relationship. The FTA considers the following factors:

    1. Common Control

    One entity or person must have direct or indirect control over all the businesses within the group. Control is typically determined by ownership structure, voting rights, or decision-making authority.

    2. Shared Ownership Structure

    At least 50% of the ownership should be common among the entities applying for VAT Group Registration. This ensures that the businesses operate as a single economic unit.

    3. Active Business Operations

    Entities included in the VAT group must be engaged in ongoing taxable business activities. Inactive or dormant companies may not be eligible.

    4. Same VAT Accounting Period

    All businesses in the group must follow the same VAT return filing schedule. Different reporting periods can create complications in tax compliance.

    Documents Required for VAT Group Registration in UAE

    To successfully apply for VAT Group Registration, businesses must provide the following documents:

    • Trade license copies for all businesses included in the VAT group
    • VAT Registration Certificates (If the businesses are already VAT registered)
    • Passport copies of business owners
    • Emirates ID copies
    • Proof of common control/ownership Memorandum of Association (MOA) & Articles of Association (AOA)
    • Group organizational structure chart
    • Latest financial statements
    • Authorization letter

    How to Register for VAT Group Registration in the UAE?

    UAE VAT Group Registration is a straightforward process managed by the Federal Tax Authority (FTA). Businesses that meet the eligibility criteria can apply online through the FTA’s e-Services portal.

    Here is a step-by-step process on how to register a VAT group, along with the required documents:

    1. Ensure Eligibility

    Before starting the application, businesses must verify that they meet the eligibility criteria for VAT Group Registration:

    • The entities must be legally related (e.g., parent-subsidiary relationship or common shareholders).
    • Each business must have a valid trade license issued by UAE authorities.
    • The group members must be VAT-registered or eligible for VAT registration.
    • The businesses must have active operations in the UAE with taxable supplies.
    • There should be no history of major VAT non-compliance or violations.

    2. Register for an FTA e-Services Account

    If the businesses are not yet registered for VAT, they need to first complete their individual VAT registrations before applying for VAT Group Registration.

    1. Visit the FTA e-Services portal: https://eservices.tax.gov.ae
    2. Create an account using a valid email ID and password.
    3. Log in and complete the standard VAT registration for each business entity.
    4. Once VAT registration is done, you will receive a Tax Registration Number (TRN) for each entity.

    Only after obtaining a TRN can businesses apply for VAT Group Registration.

    3. Initiate the VAT Group Registration Application

    1. Log in to the FTA e-Services Portal using the credentials of the business that will be the Representative Member of the VAT Group.
    2. Navigate to the VAT Group Registration section and click on “New VAT Group Registration.”
    3. Read the guidelines carefully before proceeding with the application.

    4. Provide Business and Ownership Details

    At this stage, businesses need to provide detailed information about the entities applying for VAT Group Registration.

    • Representative Member: Select the business that will be responsible for submitting VAT returns and payments on behalf of the group.
    • TRNs of Group Members: Enter the Tax Registration Number (TRN) of each business in the group.
    • Legal Relationship: Describe how the businesses are related (e.g., common ownership, parent-subsidiary, or shared financial control).
    • Business Activities: Provide details on the nature of the businesses’ operations and taxable supplies.

    Important Note: The representative member will be legally responsible for VAT compliance, including filing returns and making VAT payments. Businesses should carefully choose the entity that will take on this role.

    5. Upload the Required Documents

    Submit the necessary documents (listed below) to support the application. All documents should be in PDF or JPG format and must be clear and valid.

    6. Review and Submit the Application

    Before submitting the application, carefully review all details to ensure accuracy. Verify that the TRNs of all group members are correctly entered. Ensure that the representative member details are accurate.

    7. FTA Review and Approval Process

    Once submitted, the FTA will review the application, which may take several weeks. The FTA will:

    • Verify the legal and financial relationships between group members.
    • Assess whether the businesses meet the eligibility criteria.
    • Check the tax compliance history of all group members.
    • Request additional information or documents if needed.

    If the application is approved, the VAT Group will be assigned a single VAT Group Tax Registration Number (TRN). If the application is rejected, businesses will receive an email explaining the reasons for rejection and any corrective actions required.

    8. Receive VAT Group Registration Certificate

    Upon approval, the FTA will issue a VAT Group Registration Certificate, confirming the VAT group’s status. This certificate will include:

    • The VAT Group TRN (which replaces individual VAT numbers for VAT filing purposes).
    • Details of all group members.
    • The effective date of VAT Group Registration.

    From this date onward, the VAT Group must submit a single VAT return for all members, with the representative member responsible for compliance.

    Benefits of VAT Group Registration in UAE

    VAT Group Registration allows multiple businesses under common ownership or control to register as a single taxable entity for VAT purposes. Here are the key advantages of VAT Group Registration in the UAE:

    1. Simplified VAT Compliance

    Instead of multiple businesses filing separate VAT returns, the VAT Group submits a single consolidated VAT return. This reduces paperwork, saves time, and ensures easier tax management.

    2. No VAT on Intra-Group Transactions

    When businesses within a VAT Group transact with each other, VAT is not charged on these transactions. This helps improve cash flow and simplifies internal invoicing.

    3. Cost Savings on VAT-Related Expenses

    With fewer VAT filings and reduced transaction costs between group members, businesses can save money on VAT compliance. Additionally, hiring VAT consultants or accountants becomes more cost-effective when managing a single VAT account instead of multiple ones.

    4. Improved Cash Flow Management

    Since VAT is not charged on transactions within the group, businesses can manage their cash flow better and avoid unnecessary tax payments. This is especially helpful for businesses dealing with high volumes of transactions.

    5. Centralized VAT Management

    With VAT Group Registration, the representative member of the group manages VAT-related responsibilities. This ensures better control and oversight over tax compliance.

    6. Stronger Tax Position and Compliance

    By consolidating VAT compliance under one group, businesses reduce the risk of individual VAT errors and ensure that they meet regulatory requirements in a streamlined manner. The Federal Tax Authority (FTA) views VAT Groups as structured entities, reducing the chances of audits or compliance issues.

    How Shuraa Tax Can Assist with VAT Group Registration

    VAT Group Registration in the UAE is a smart choice for businesses with multiple entities under common ownership. It simplifies tax filing, reduces administrative work, and helps businesses save money by avoiding VAT on transactions between group members. Instead of managing separate VAT accounts for each entity, companies can file one VAT return for the entire group, making tax compliance easier and more efficient. Additionally, VAT grouping improves cash flow management by eliminating unnecessary VAT payments within the group.

    However, businesses must meet specific eligibility criteria and follow the correct process to register successfully. This can sometimes be complex, requiring accurate documentation and compliance with Federal Tax Authority (FTA) regulations.

    At Shuraa Tax, we provide end-to-end assistance with VAT Group Registration, from checking your eligibility and preparing documents to submitting the application and ensuring compliance with UAE tax laws. Our team of VAT experts will guide you through the process, help you avoid penalties, and provide ongoing VAT support to keep your business tax compliant.

    Get in touch with Shuraa Tax today for expert guidance on VAT Group Registration in the UAE.

    FAQs

    1. What is VAT Group Registration?

    VAT Group Registration in UAE allows multiple businesses under the same ownership to register as a single entity for VAT purposes. This simplifies VAT compliance, reduces administrative tasks, and eliminates VAT on transactions between group members.

    2. Who is eligible to apply for VAT Group Registration?

    UAE businesses with shared ownership or control, such as parent-subsidiary relationships, and those that are VAT-registered or eligible for VAT registration, can apply. All members must be conducting taxable activities in the UAE.

    3. How does VAT Group Registration benefit my business?

    It reduces paperwork by consolidating VAT returns, improves cash flow by eliminating VAT on internal transactions, and centralizes VAT management under one representative member, saving time and costs on tax compliance.

    4. How can I apply for VAT Group Registration?

    To apply, businesses must be VAT-registered, meet the eligibility criteria, and submit an application through the Federal Tax Authority (FTA) e-Services portal with required documentation, including ownership proof and financial statements.

    5. What happens after applying for VAT Group Registration?

    After submission, the FTA will review the application. If approved, the VAT group will be issued a VAT Group Registration Number and must begin filing a single VAT return for the entire group.

  • Corporate Tax Consultants in Dubai

    Corporate Tax Consultants in Dubai

    With the UAE rolling out its Corporate Tax Law, businesses must now pay close attention to compliance and tax planning. This is where experienced corporate tax consultants in Dubai play a vital role.

    Whether you’re a mainland company or operating in a Free Zone, the best corporate tax consultants in Dubai, like Shuraa Tax, can help you assess your tax obligations, prepare the necessary documentation, and navigate complex regulations with ease.

    From understanding exemptions to calculating liabilities, corporate tax consultants in Dubai provide expert guidance to ensure you’re fully compliant while optimising your tax strategy. By working with the best corporate tax consultants in Dubai, businesses can avoid penalties, stay ahead of deadlines, and build more substantial investor confidence.

    Now is the time to stay informed, stay prepared, and partner with the right experts to thrive in the UAE’s evolving tax landscape.

    Corporate Tax Consultancy Services in UAE

    As the UAE advances with its federal corporate tax regime, businesses must ensure they remain compliant, efficient, and informed. Corporate tax consultancy services in the UAE are designed to help companies navigate this evolving landscape, right from tax registration to complex audits and transfer pricing regulations.

    Whether you’re operating on the mainland or within a Free Zone, working with an experienced corporate tax consultant in Dubai ensures that your business remains compliant and tax-efficient.

    Key Corporate Tax Services

    1. Corporate Tax Registration

    The first step in compliance is registering your business for UAE Corporate Tax. A qualified corporate tax consultant in Dubai can handle the complete registration process and ensure your business meets all requirements set by the Federal Tax Authority (FTA).

    2. Corporate Tax Assessment

    Understanding your taxable income, applicable rates, and exemptions is essential. Expert corporate tax consultants in Dubai provide precise tax assessments, enabling you to plan more effectively and avoid potential legal issues.

    3. Corporate Tax Return Filing

    Filing tax returns accurately and on time is mandatory. A consultancy like Shuraa Tax ensures proper documentation and timely submissions, reducing the risk of penalties and errors.

    4. Corporate Tax Audit

    A corporate tax audit can be daunting without professional help. Reliable consultants assist in preparing audit-ready reports and liaising with tax authorities if needed.

    5. Transfer Pricing Compliance

    For companies involved in cross-border or related-party transactions, complying with the UAE’s transfer pricing regulations is crucial. The best corporate tax consultants in Dubai offer in-depth support in transfer pricing documentation and reporting.

    Objective of Corporate Tax Consulting in Dubai, UAE

    The main objective of corporate tax consulting is to ensure that businesses operate within the legal framework while optimising their tax liabilities. It involves strategic planning, risk assessment, and ensuring compliance with local and international tax laws.

    By working with trusted firms like Shuraa Tax, businesses gain access to experienced advisors, the latest regulatory updates, and a personalised approach to corporate tax management.

    Suppose you’re looking for the best corporate tax consultants in Dubai. In that case, Shuraa Tax brings a team of seasoned experts who specialise in corporate tax law, FTA compliance, and financial efficiency, making them a trusted name in the UAE’s tax consulting landscape.

    Exceptions and Tax Benefits in the UAE Corporate Tax Regime

    The UAE Corporate Tax regime offers various exceptions and tax benefits that can significantly impact businesses and individuals.

    • Some individuals are exempt from corporate tax in the UAE
    • Companies earning income outside the UAE can claim tax credits for taxes paid in other jurisdictions, effectively exempting them from UAE tax on those profits.

    Who is Included in the UAE Corporate Tax Bracket?

    1. Natural Persons: The UAE corporate tax regime includes sole establishments, proprietorships, and individual partners in unincorporated businesses. However, personal income remains tax-free.
    2. Legal Persons: Legal Persons include UAE companies and entities incorporated in the UAE, as well as foreign entities with a permanent establishment or earning income in the UAE. This category encompasses Limited Liability Companies (LLCs), Private Shareholding Companies (PSCs), Public Joint Stock Companies (PJSCs), and other legally established entities. Businesses can consult corporate tax consultants in Dubai to understand corporate tax implications on their profits.

    Navigating UAE Corporate Tax Filing Deadlines

    Adhering to corporate tax filing deadlines is a vital part of corporate tax compliance. Missing deadlines can lead to penalties that affect your business’s finances and reputation. Timely and accurate filing is essential to avoid these risks.

    Corporate tax consultants in Dubai specialise in keeping businesses on track with tax filings. They manage everything from preparing tax returns to submitting them on time. Their understanding of local and international tax laws ensures that your business stays compliant and avoids unnecessary fines. Working with a corporate tax advisory in the UAE provides peace of mind, knowing that all filing deadlines are met efficiently.

    Financial Year-End   Deadline to Submit the Return  
    30 June   31st Dec 2026
    31 December   30th Sep 2026
    31 March   31st Dec 2026

    Benefits of Hiring Corporate Tax Consultants in Dubai

    Hiring corporate tax consultants in UAE brings several benefits to businesses, especially with the new corporate tax regulations. These professionals provide personalised tax solutions, ensuring that your business optimises its tax liabilities while complying with the law.

    Here are some key advantages:

    1. Regulatory Expertise: Stay compliant with evolving UAE tax laws, including the latest corporate tax requirements. This ensures your business avoids penalties.
    2. Custom Tax Strategies: Develop tailored strategies to optimise tax liabilities and maximise deductions.
    3. Increased Efficiency: Outsource tax tasks to focus on core business operations.
    4. Risk Mitigation: Identify and reduce potential tax risks and avoid costly mistakes.
    5. Support for International Operations: Helps with international tax treaties and compliance for cross-border business.
    6. Stay Updated: Keep informed about changes in tax legislation and new opportunities.
    7. Financial Planning: Improve cash flow management through effective tax planning.
    8. Dispute Representation: Get support in tax disputes with authorities.
    9. Networking Opportunities: Gain access to valuable industry connections.
    10. Cost-Effectiveness: Save on taxes and penalties, making it a wise investment.

    Corporate tax consultants enhance compliance, reduce liabilities, and support business growth in Dubai’s competitive market.

    Corporate Tax Consulting Service in UAE

    Shuraa Tax Auditing offers a comprehensive suite of corporate tax services in the UAE to meet the diverse needs of businesses. Our specialised services cover all aspects of corporate tax management, ensuring accurate handling of tax liabilities.

    Our expert tax consultants assist with the following:

    • Corporate tax provisions and rates
    • Exempt persons and businesses
    • Taxable income calculations
    • Corporate tax relief and deductions
    • Related party transactions
    • Tax loss and group provisions
    • Corporate tax registration and deregistration
    • Filing tax returns and addressing clarifications
    • Compliance with anti-abuse rules and transitional provisions

    Trust Shuraa Tax Auditing for a thorough and compliant approach to corporate tax services in the UAE.

    Corporate Tax Compliance in Dubai

    Corporate tax, introduced in the UAE in 2023, is a direct tax on the income of corporations. It applies to most businesses across the Emirates.

    Corporate Tax Rates:

    • 9%: Applies to taxable profits over AED 375,000 (approx. $102,000).
    • 0%: Applies to taxable income up to AED 375,000, providing relief for small businesses.

    Exceptions

    • Foreign banks: A flat rate of 20% applies under specific emirate decrees.
    • Oil & Gas companies: Subject to individual tax agreements.
    • Multinational Enterprises: Different rates apply to those under the OECD’s BEPS 2.0 framework with global revenue exceeding AED 3.15 billion (approximately $860 million).

    Taxable Persons include

    • Resident Persons: UAE companies, foreign firms managed in the UAE, and individual businesses with over AED 1 million turnover annually.
    • Non-Resident Persons: Companies with a UAE presence or UAE-sourced income.

    For expert guidance, consider hiring a corporate tax consultant in Dubai to navigate these regulations.

    How to Choose the Right Corporate Tax Consultant?

    Choosing the right corporate tax consultant is essential for compliance and optimising tax strategy. Start by evaluating their qualifications and experience in your industry, ensuring they are well-versed in UAE tax laws and recent changes.

    Consider the range of services they offer, such as tax planning and audit support, to ensure they meet all your needs. Request client references, read reviews to gauge their reputation, and look for strong communication skills to clearly explain complex issues.

    Inquire about their fee structure to ensure transparency and verify that they utilise modern tax software for efficiency. Lastly, choose a consultant who provides ongoing support throughout the year. Considering these factors, you can select a corporate tax consultant who will effectively enhance your business’s tax compliance and strategy.

    Top 10 Corporate Tax Consultants in Dubai, UAE

    The top 10 corporate tax consultants in Dubai, UAE, are as follows:

    1. Shuraa Tax

    Shuraa Tax is a leading corporate tax consultancy firm in Dubai, recognised for its expertise in navigating the complexities of the UAE’s tax landscape. Established to provide comprehensive tax services, Shuraa aims to help businesses ensure compliance while optimising their tax liabilities.

    Services: Corporate Tax Advisory, Tax Compliance, VAT Consulting, Tax Planning, Tax Audit Support, Transfer Pricing Services, Risk Management, Training and Workshops

    2. Farahat & Co.

    Known for its expert knowledge and professional assistance, Farahat & Co. offers a range of tax services, including corporate tax and VAT advisory services.

    Services: Auditing, Accounting, VAT Consulting, Liquidation, Trademark Registration, Payroll & HR Services.

    3. A&A Associate LLC

    Renowned for tax advisory and dispute resolution, they create effective tax strategies for clients.

    Services: Accounting, Audit, Advisory, Legal Services, Assurance.

    4. Taxman Tax Consultancy

    This consultancy features a team of tax experts providing VAT implementation and compliance services.

    Services: VAT, Financial Management, Legal Advisory, Accounting Software Consultancy, Corporate Tax.

    5. BMS Auditing

    Guides UAE’s tax system, focusing on compliance and planning.

    Services: Audit, Accounting, Corporate Tax, VAT Services, Mergers & Acquisitions.

    6. Accruon Consultant LLC

    It offers extensive tax-related services, including VAT and corporate tax assistance, and has a strong reputation in the UAE.

    Services: Corporate Tax, VAT Audit, Economic Substance Regulations, Management Consultancy.

    7. Mazars

    A prominent firm that assists clients in navigating the UAE’s complex taxation, including transfer pricing and corporate tax planning.

    Services: Audit, Business Advisory, Financial Advisory, Tax Compliance.

    8. Charles and Darwish Associates (CDA)

    Offers various accounting and auditing services to achieve favourable tax outcomes.

    Services: Accounting, Audit, VAT, Payroll Services.

    9. Sajjad Haider & Co.

    Established in 1998, this firm is well-regarded for its advisory services and has strong international connections.

    Services: Audit, Tax, Advisory.

    10. Deloitte

    A global leader in tax consultancy, offering comprehensive services, including audits and VAT compliance.

    Services: Audit, Consulting, Financial Advisory, Tax.

    These firms provide a range of services tailored to meet diverse corporate tax needs, ensuring compliance and supporting strategic planning.

    Corporate Tax Advisory Services in Dubai

    As UAE’s business income taxes undergo continuous reforms, staying well-informed and compliant is crucial. Seeking guidance from a tax professional firm is the best way to navigate this evolving landscape.

    Ready to ensure your business is compliant with the UAE’s corporate tax laws? Trust Shuraa Tax for comprehensive and reliable corporate tax consulting services in Dubai. Reach out today at +971 508912062 or info@shuraatax.com for a consultation.

    FAQs

    Q1. What Services do corporate Tax Consultants in Dubai provide?

    Corporate tax consultants assist businesses in Dubai in staying compliant with UAE tax regulations. Services include tax planning, advisory, compliance, transfer pricing, and audit support.

    Q2. How Much Do Corporate Tax Consultants Charge in Dubai?

    Fees range from AED 1,500* to AED 10,000 per month, depending on the scope of services and the size of the business.

    Q3. Are Corporate Tax Consultants Necessary for Free Zone Companies?

    While not mandatory, corporate tax consultants are beneficial for free zone companies to navigate regulations, maximise tax incentives, and avoid penalties.

    Q4. How to Choose the Best Corporate Tax Consultant in Dubai?

    When selecting the best corporate tax consultants in Dubai, look for firms with proven experience in UAE tax laws, a strong client portfolio, transparent pricing, and end-to-end tax services. Client testimonials and industry reputation also play a key role.

    Q5. Can a Corporate Tax Consultant Help with Tax Return Filing?

    Yes, a corporate tax consultant in Dubai can handle the entire tax return filing process — from data collection and documentation to submission and compliance with Federal Tax Authority (FTA) requirements.

    Q6. Do Corporate Tax Consultants in Dubai Offer Transfer Pricing Services?

    Absolutely. Many corporate tax consultants in Dubai provide expert assistance with transfer pricing documentation, policy creation, and audit defense, helping businesses comply with OECD guidelines and UAE-specific regulations.

    Q7. Are Corporate Tax Consultants in Dubai Also Useful for Startups and SMEs?

    Yes. Whether you’re a startup or an SME, working with a corporate tax consultant in Dubai ensures that your business is structured tax-efficiently from the beginning, helping avoid costly mistakes and take advantage of available exemptions.

    Q8. Do the Best Corporate Tax Consultants in Dubai Offer Ongoing Support?

    Most of the best corporate tax consultants in Dubai offer ongoing support, including monthly reviews, real-time updates on law changes, audit representation, and strategic tax planning customised to your business’s growth.

    Q9. Can a Corporate Tax Consultant in Dubai Help with Penalty Reduction?

    Yes. A corporate tax consultant in Dubai can identify non-compliance issues, guide you through voluntary disclosures, and liaise with the FTA to help reduce or avoid penalties.

    Q10. Do Corporate Tax Consultants Assist in VAT & Excise Tax Too?

    Many corporate tax consultants in Dubai also offer comprehensive tax services, including VAT registration, VAT return filing, and excise tax advisory, providing a one-stop solution for all tax obligations.

  • VAT on Free Zones in UAE – Dubai

    VAT on Free Zones in UAE – Dubai

    Value Added Tax (VAT) has become an important part of running a business in the UAE since it was introduced in January 2018. With a standard rate of 5%, VAT applies to many goods and services, meaning businesses need to be aware of the rules and how to comply with them. One of the unique features of the UAE is its free zones.

    Free Zone is a term for free trade zones that encourage foreign ownership of businesses. Businesses in Free Zones must follow the rules set by the Free Zone Authority to do business in this area. Under UAE law, certain Free zones are known as “designated zones.” According to Article 51 of the Executive Regulations, the following meet the description of marked zones:

    • A particular geographic region that is enclosed and secured.
    • Security measures and customs rules are in place to keep track of who comes and goes and what moves in and out of the area.
    • It has internal rules about how things should be kept, stored, and worked on in the area.
    • The person in charge of the Designated Zone must follow the rules set by the FZ Authority.

    Therefore, any Free zone that satisfies the requirements and is listed on the cabinet’s list will be considered a Designated zone. Some of the famous free zones include IFZA, JAFZA, DIFC, and RAKEZ.

    While free zones provide great opportunities, they also have specific VAT rules that businesses need to understand, especially regarding VAT for free zone companies in UAE. For example, knowing the difference between designated and non-designated zones, what qualifies for zero-rated supplies, and the steps for VAT compliance can all affect a company’s finances. That’s why it’s essential for businesses operating in Dubai’s free zones to get a clear grasp of VAT implications.

    Is there VAT for Freezone Companies in the UAE?

    Yes, VAT can apply to Free Zone companies in the UAE, but it depends on several factors. Some people think that only limited companies can sign up for VAT in the UAE. Any business that meets the minimum requirement for VAT registration in the UAE must go through the FTA’s VAT registration process. A free zone company in the UAE can register independently if it makes between AED 187,500 and AED 375,000.

    For free zone companies, understanding whether they reach this threshold is crucial, as it determines their VAT registration requirements. If they exceed the threshold, they must comply with all VAT obligations, including charging VAT on their taxable supplies and filing regular VAT returns. This is an important aspect of VAT registration for free zone companies in UAE.

    Distinction Between Designated Zones and Non-Designated Zones

    One of the key concepts in VAT for free zone companies is the distinction between designated zones and non-designated zones.

    Designated Zones

    Designated free zones in the UAE are specific free zones that have been designated by the Federal Tax Authority (FTA) as being outside the territorial scope of the UAE for VAT purposes. This means that goods and services supplied within these zones are generally exempt from VAT.

    However, there are some exceptions:

    • Supply of Services to Mainland Businesses: If a free zone company supplies services to a mainland business, VAT is applicable at a standard rate of 5%.
    • Supply of Goods or Services to Non-Business Consumers: If a free zone company supplies goods or services to non-business consumers within the zone, VAT may be applicable.

    Non-Designated Zones

    On the other hand, non-designated zones do not enjoy the same VAT benefits as designated zones. Businesses operating in these areas are subject to the standard VAT rates. Therefore, it’s important for companies to know which category their free zone falls into to understand their VAT obligations better.

    VAT Treatment in the UAE Free Zones

    The standard VAT rate in the UAE Free Zone is set at 5%. This rate applies to most goods and services that do not qualify for any exemptions or special treatment. However, there are also zero-rates supplies and tax-exempt supplies.

    Tax-Exempt VAT

    Tax-exempt supplies are goods and services that are not subject to VAT. This means that businesses do not charge VAT on these supplies, and they also cannot claim any input tax credits on related purchases. Examples of tax-exempt supplies include certain healthcare and educational services.

    Zero-Rated VAT

    Zero-rated VAT means that the VAT rate charged on a good or service is 0%. Businesses can still recover the VAT incurred on their purchases related to these supplies. This treatment often applies to exports and specific goods and services that meet certain criteria. In designated free zones in the UAE, goods that are moved outside the zone may also qualify for zero-rated VAT.

    Specific VAT Treatments for Goods and Services within Free Zones

    The VAT treatment of goods and services in free zones can vary, with several important considerations:

    Import and Export

    In designated zones, imported goods can be stored without VAT until they are moved outside the zone. This can significantly reduce the cash flow burden for businesses. Exports from these zones are typically zero-rated, allowing companies to sell goods to international customers without adding VAT.

    Services

    When it comes to services, VAT may apply depending on the nature of the service and where it is supplied. For instance, services provided within a designated zone may not incur VAT, while services supplied to customers outside the zone might be subject to VAT.

    VAT Refunds

    Free zone companies may also be eligible for VAT refunds on certain expenses incurred within the zone. This can provide a financial advantage and enhance cash flow management.

    How to Register for VAT in UAE Free Zone?

    While most free zones in the UAE are designated zones, exempting them from VAT, some may require VAT registration depending on their specific activities and the nature of their supplies. Here’s a general process on how to register for VAT in a UAE Free Zone:

    1. Determine VAT Registration Requirement

    Not all free zones are designated. Designated zones are generally exempt from VAT. However, if you supply goods or services to non-business consumers within the zone or to entities outside the zone, you may need to register.

    Companies in non-designated zones are subject to VAT and must register if they meet the standard VAT registration threshold i.e. AED 375,000 per year. However, businesses below this threshold can still register voluntarily if they choose.

    2. Prepare Required Documents

    Gather the necessary documents before beginning the registration process. Commonly required documents include:

    • Trade license of the free zone company
    • Copy of the owner’s passport or identification
    • Proof of business address in the free zone
    • Bank account details
    • Financial statements (if applicable)
    • Information about taxable supplies and imports

    3. Access the Federal Tax Authority (FTA) Website

    Visit the official website of the Federal Tax Authority (FTA) of the UAE. This is the government body responsible for managing tax matters, including VAT registration.

    4. Create an Account on the FTA Portal

    If you do not already have an account, you will need to create one on the FTA portal. Click on the registration section and follow the instructions to set up your account. You’ll need to provide your email address and set a password for your account.

    5. Complete the VAT Registration Application

    Once logged in, navigate to the VAT registration section and fill out the application form. You’ll need to provide details about your business, including:

    • Business activities
    • Estimated annual turnover
    • Details about your free zone

    Ensure all information is accurate and complete, as any discrepancies can delay the registration process.

    6. Submit the Application

    After filling out the application form, review all the information and submit it through the FTA portal.

    7. Review and Approval

    The FTA will review your application. If they require any additional information or documentation, they will contact you. Upon approval, you will receive a Tax Registration Number (TRN).

    What happens if a company does not register for VAT?

    If a company that works in and out of a free zone in the UAE doesn’t register for VAT in time though required as per law, the FTA will register the business from the date it should have been registered for VAT.

    So, Businesses failing to comply with VAT registration rules will receive fines and must retroactively apply the correct VAT rate to all past sales. If your yearly sales hit the threshold, you can hire a licenced tax agent in the UAE to help you. This is very important if you don’t know when your business needs to be registered or if it has already reached the required size.

    VAT Registration in Freezone with Shuraa Tax

    Understanding VAT for free zone companies in UAE is essential for businesses operating in these areas. Whether you’re in a designated or non-designated zone, knowing the VAT rules helps you stay compliant, avoid fines, and make informed financial choices. Since VAT regulations can be tricky, it’s smart to get professional guidance to ensure your business follows all the rules.

    Shuraa Business Setup not only help business owners set up their companies in mainland, free zone, and overseas areas, but we also help you get our in-house finance teams ready for accounts reporting, auditing, UAE tax support like VAT, Corporate tax, Excise Tax, Tax Residency Certification.

    Our qualified tax team of advisors and UAE tax agents assist businesses to be UAE tax compliant and to have effective documentation which is required by UAE authority. Contact us today at +971508912062 or info@shuraatax.com to make the process simple and hassle-free.

    Frequently Asked Questions

    1. What is VAT for freezone companies in UAE?

    VAT for freezone companies in the UAE is the value-added tax that businesses operating in free zones must comply with, depending on whether they are in a designated or non-designated zone. The standard VAT rate in the UAE is 5%, but designated zones enjoy special VAT treatment, such as exemptions or zero-rated supplies for certain transactions.

    2. What are Designated Free Zones in UAE?

    Designated free zones are specific free zones that have been designated by the Federal Tax Authority (FTA) as being outside the territorial scope of the UAE for VAT purposes. This means that goods and services supplied within these zones are generally exempt from VAT.

    3. Do freezone companies need to register for VAT in the UAE?

    Yes, freezone companies must register for VAT if their taxable supplies and imports exceed AED 375,000 per year. Even if they don’t meet this threshold, companies can voluntarily register for VAT to benefit from input tax recovery on their purchases.

    4. How does VAT impact goods moving in and out of free zones?

    In designated free zones in UAE, goods moving in and out of these areas can be VAT-free, particularly when they are exported outside the UAE. However, if goods are transferred into the UAE mainland from a designated zone, VAT will be charged at the standard rate.

  • Documents Required for Corporate Tax Registration in UAE

    Documents Required for Corporate Tax Registration in UAE

    Corporate Tax is one of the biggest changes to business rules in the UAE, introduced on June 1, 2023. The aim is to bring the UAE in line with global tax practices while still keeping the rates attractive for businesses. Now, if you run a company in the mainland, a free zone, or even offshore, corporate tax registration with the Federal Tax Authority (FTA) has become a must.

    Registering on time is not just about following the law, it also helps you avoid penalties and shows your business is reliable and compliant. The whole process, however, depends on one key thing: having the right documents in place. If even one paper is missing or outdated, it can delay your registration and create unnecessary problems.

    Dealing with the legalities can be tricky, but you don’t have to do it alone. Shuraa Tax offers expert help with corporate tax services in UAE. We can guide you through everything, from essential documents required for corporate tax registration to filing your tax returns, to make sure your business is fully compliant.

    Who Needs to Register for Corporate Tax in UAE?

    Almost every business or person engaged in business activities in the UAE must register for Corporate Tax. This is a mandatory requirement to ensure compliance with the new tax laws.

    1. UAE-based businesses:

    This includes all companies, partnerships, and other juridical entities established in the UAE mainland and free zones. Even if a free zone company qualifies for a 0% tax rate, it still needs to register and get a Corporate Tax Registration Number (TRN).

    2. Foreign businesses:

    Non-resident companies must register if they have a “Permanent Establishment” in the UAE. This means having a fixed business presence, such as a branch, office, or long-term project.

    3. Individuals (Natural Persons):

    You might need to register if you’re an individual earning income from a business or freelance activity in the UAE and your annual turnover exceeds AED 1 million. This doesn’t apply to income from salaries, personal investments, or real estate (in your personal capacity).

    4. Exempted Persons:

    Even entities that are exempt from paying Corporate Tax, such as government bodies or qualifying public benefit organizations, may still be required to register with the Federal Tax Authority (FTA) to prove their exemption status.

    Note: Corporate tax is charged at 9% on profits above AED 375,000, while income up to AED 375,000 is taxed at 0% (to support small businesses and startups).

    Documents Required for Corporate Tax Registration in UAE

    When applying for corporate tax registration with the Federal Tax Authority (FTA), you’ll need to prepare and upload a set of documents. Each document plays an important role in proving your business’s identity, structure, and financial standing. Here’s a breakdown:

    1. Trade License Copy

    Your valid trade license is the most important document. It shows that your business is legally registered in the UAE and outlines the activities you are allowed to carry out. Make sure the license is renewed and up to date, as expired licenses can delay the registration process.

    2. Certificate of Incorporation (if applicable)

    This applies to certain types of businesses, such as companies incorporated in free zones or under specific laws. It’s proof that your company has been legally established and recognized by the authorities.

    3. Memorandum of Association (MOA) or Articles of Association (AOA)

    These documents explain the structure of your company, such as the roles of shareholders, shareholding percentages, and rules for company management. The FTA may need this to understand the ownership and control of the business.

    4. Lease Agreement / Ejari Certificate

    This serves as proof of your business address in the UAE. Whether it’s an office, warehouse, or shop, the FTA requires confirmation that your company has a registered physical location.

    5. Passport and Emirates ID Copies of Shareholders/Owners

    All major shareholders, owners, and sometimes directors need to provide valid passport copies and Emirates IDs (if they are UAE residents). This helps the FTA verify the individuals behind the business.

    6. Details of Directors and Managers

    Apart from the owners, you’ll need to submit details of people managing or controlling the business. This could include board members, directors, or managers authorized to make decisions on behalf of the company.

    7. Tax Registration Number (TRN) – If Registered for VAT

    If your business is already registered for VAT in the UAE, you’ll need to provide the VAT TRN certificate. It helps the FTA link your VAT and corporate tax records under one profile.

    8. Latest Audited Financial Statements (if available)

    While not mandatory for all businesses at the registration stage, submitting financial statements can support your application and help the FTA understand your company’s size and profitability. For larger businesses, this may become a requirement.

    9. Bank Account Details

    You’ll need to provide your company’s official bank account details, including the IBAN and account number. This ensures transparency and helps in linking financial transactions for tax purposes.

    10. Power of Attorney (if applicable)

    If someone else (like a tax consultant or PRO) is handling your corporate tax registration on your behalf, you’ll need to provide a notarized Power of Attorney. This document authorizes them to act for your business in front of the FTA.

    11. Approvals from Relevant Authorities (if required)

    Certain businesses in regulated sectors (like healthcare, education, or financial services) may need to submit approvals or licenses from their respective governing authorities. These are only required for specific industries.

    12. Group or Parent Company Details (if registering as a tax group)

    If your company is part of a bigger group or registering under the “tax group” scheme, you’ll need to provide:

    • Parent company details
    • Group ownership structure
    • Supporting documents linking subsidiaries

    This ensures the FTA recognizes the entire group as one tax entity where applicable.

    Note: It is highly recommended to have your financial statements ready. The FTA may request financial statements to determine your tax liability and to confirm your business’s financial status, especially if you are claiming a zero percent tax rate. These documents include the income statement, balance sheet, and cash flow statement.

    How to Register for Corporate Tax in the UAE?

    Here’s a simple step-by-step guide for corporate tax registration in the UAE:

    Step 1: Create an FTA Account

    Visit the official FTA website: tax.gov.ae If you don’t already have an account, create one by providing:

    • Email ID
    • Password
    • Security verification details

    You’ll receive a confirmation email to activate your account.

    Step 2: Log in to the FTA Portal

    Once your account is active, log in with your credentials. Go to the Corporate Tax section inside the portal.

    Step 3: Start a New Corporate Tax Registration Application

    Select “Register for Corporate Tax.” The system will generate an application form for you. Before starting, carefully read the FTA’s instructions on eligibility and compliance.

    Step 4: Fill in Basic Business Details

    You’ll need to enter:

    • Company name (as per license)
    • Trade license number and expiry date
    • Company type (mainland, free zone, offshore)
    • Legal structure (LLC, sole establishment, etc.)
    • Business activity

    Step 5: Provide Owner and Management Information

    Upload passport and Emirates ID copies of all shareholders/partners. Add details of directors, managers, or authorized signatories.

    Step 6: Enter Contact and Address Information

    Provide official company contact details (email, phone number). Enter your registered office address (lease/Ejari certificate details).

    Step 7: Upload Required Documents

    Attach all supporting documents, such as:

    • Trade license
    • MOA/AOA
    • Passport & Emirates ID copies
    • Bank account details
    • Financial statements (if available)

    Step 8: Review and Submit the Application

    Double-check all entered details and uploaded documents. Submit the application online through the portal.

    Step 9: FTA Review and Approval

    The FTA will review your application. If additional information is needed, they will notify you via email. Once approved, your Corporate Tax Registration Number (TRN) will be issued.

    Step 10: Maintain Compliance

    Keep your TRN safe as it will be required for filing returns. File corporate tax returns annually based on your financial year. Maintain accurate records to avoid penalties.

    Why Professional Assistance Can Help

    Getting your corporate tax registration right in the UAE starts with having the correct documents in place. It not only makes the process smoother but also ensures you avoid unnecessary delays or compliance issues later. The sooner you register, the smoother things will be for you in the long run.

    At Shuraa Tax, we’re here to make the process simple. From helping you collect the right papers to completing the registration, our team takes care of it all. Plus, we offer a full range of taxation services in the UAE, so whether it’s VAT, bookkeeping, audits, or compliance, we’ve got you covered.

    Reach out to Shuraa Tax today and let us take the stress out of corporate tax for you.

    📞 Call: +(971) 44081900
    💬 WhatsApp: +(971) 508912062
    📧 Email: info@shuraatax.com

  • TRN Verification in UAE: Process to Verify VAT Number in UAE

    TRN Verification in UAE: Process to Verify VAT Number in UAE

    The introduction of Value Added Tax (VAT) in the UAE in 2018 marked a significant shift, as the country had never previously applied a federal tax on goods and services. This led to understandable confusion among businesses and residents about how VAT works and what compliance involves. Since then, one of the most common queries has been about the Tax Registration Number (TRN), what it is, how to obtain it, and how TRN verification in Dubai or the UAE works for checking a business’s VAT status.

    A TRN is issued once a business successfully completes VAT registration with the Federal Tax Authority (FTA). After approval, the FTA assigns the TRN, which is required for VAT invoicing, return filings, and official documentation. It also enables TRN verification in the UAE through the FTA’s system, allowing businesses and individuals to confirm a company’s VAT registration status.

    What is TRN in the UAE?

    A Tax Registration Number (TRN) in the UAE is a unique identification number issued by the Federal Tax Authority (FTA) to businesses and individuals after successful VAT registration. Introduced alongside VAT in 2018, the TRN became a key component of the UAE’s first nationwide tax system. It confirms that a business or individual is officially registered with the FTA and authorised to charge, collect, and remit VAT.

    Once VAT registration is approved, the TRN is automatically generated through the FTA portal and is mandatory for issuing VAT-compliant invoices, filing returns, and dealing with tax authorities. The TRN also supports transparency, as clients, suppliers, and regulators can conduct TRN verification in Dubai or across the UAE to confirm a business’s VAT registration status and ensure compliance with tax regulations.

    What is the TRN Format in the UAE?

    The Tax Registration Number (TRN) format in the UAE follows a standard structure set by the Federal Tax Authority (FTA) to uniquely identify every VAT-registered business or individual.

    A UAE TRN is a 15-digit numeric code, with no letters, symbols, or spaces.

    UAE TRN Format Example

    TRN: 123456789012345

    Key Points About the TRN Format

    • Always 15 digits long
    • Numeric only (no alphabets or special characters)
    • Issued only after successful VAT registration
    • Unique to each VAT-registered entity
    • Remains the same unless the VAT registration is cancelled or amended by the FTA

    Where Is the TRN Used?

    The TRN must be clearly mentioned on:

    • VAT tax invoices
    • Credit notes and debit notes
    • VAT returns filed with the FTA
    • Official tax-related communications

    Why the Correct TRN Format Matters?

    Using the correct TRN format ensures:

    • Valid VAT invoices
    • Smooth VAT return filing
    • Easy TRN verification in the UAE via the FTA portal
    • Accurate TRN verification in Dubai for customers and suppliers

    Any error in the TRN format can lead to invoice rejection, compliance issues, or penalties under UAE VAT law.

    The UAE TRN format is simple but critical, a 15-digit number that confirms your VAT registration and legal tax status in the UAE

    Penalties & Risks of Using Invalid TRNs in the UAE

    Below are the penalties and risks of using invalid TRNs in the UAE:

    Penalty / Risk    What It Means  Penalty Amount / Impact
    Using an Incorrect or Invalid TRN   Mentioning a wrong, fake, or inactive TRN on tax invoices or documents.    AED 5,000 per incorrect TRN
    VAT Non-Compliance   Charging or reclaiming VAT without a valid TRN.   AED 10,000 for first offence, AED 50,000 for repeat offences  
     Input VAT Claim Rejection Claiming VAT using invoices with invalid TRNs.   Input VAT denied, resulting in direct financial loss  
    Submission of Incorrect VAT Details    Providing inaccurate VAT or TRN-related information to the FTA.  AED 3,000–5,000 per incorrect submission
    Tax Evasion (Intentional Misuse)   Deliberate use of fake or misleading TRNs to evade VAT.    Up to 5 times the VAT amount involved, plus legal action
     Legal & Regulatory Action Serious or repeated VAT violations linked to invalid TRNs.   Business suspension, licence risk, or prosecution  
    Bank & Audit Issues    Banks and auditors are rejecting documents with invalid TRNs.  Account freezes, audit failures, delayed approvals
    Business Reputation Damage   Clients verify TRN through TRN verification in Dubai / UAE.   Loss of contracts, delayed payments, and credibility damage  

    Important Note

    Penalty amounts are based on FTA administrative penalty guidelines and may vary depending on:

    • Nature of the violation
    • Whether it’s a first or a repeat offence
    • Intent (error vs. deliberate misuse)

    What is TRN’s Significance?

    TRN registration is a productive, time-efficient, and cost-saving process for both the public and private sectors. It can assist with:

    • Reclaiming previously paid taxes on the purchase, production, and processing of a product or merchandise.
    • Offering a refund to businesses that have registered for VAT and acquired a valid TRN.
    • Recoupment of business purchases through VAT by the purchaser.
    • Tax registration number strengthens the credibility and profile of the Company.

    According to the UAE’s VAT Law, TRN Verification of all tax documents is required for businesses, including the following:

    • Tax Invoice
    • VAT Return Tax
    • Credit notes
    • Other relevant tax documents

    Who Needs to Register for a TRN in the UAE?

    Businesses in the UAE must assess their turnover to determine whether they are required to register for VAT and obtain a TRN. The Federal Tax Authority (FTA) has set clear thresholds to guide this process and ensure smooth TRN verification with the FTA, especially for businesses operating in Dubai and across the UAE.

    Mandatory VAT Registration

    VAT registration becomes compulsory once a business’s taxable supplies and imports cross AED 375,000.

    If your company’s revenue or taxable imports exceeded AED 375,000 in the past 12 months or are expected to cross this limit within the next 30 days, you must register for VAT and complete TRN verification to stay compliant and avoid fines.

    It’s important to note that this threshold does not apply to foreign businesses, which may be required to register regardless of turnover, depending on their taxable activities in the UAE.

    Voluntary VAT Registration

    Businesses with taxable turnover between AED 187,500 and AED 375,000 have the option to register voluntarily.

    Voluntary registration allows businesses to obtain a TRN and proceed with TRN verification in Dubai, helping them recover input VAT and improve credibility with clients and suppliers, even if registration isn’t legally mandatory yet.

    Exempt from VAT Registration

    If a company’s annual taxable revenue and imports remain below AED 187,500, VAT registration is not required, and TRN verification with the FTA is not applicable.

    Understanding where your business stands help ensure timely TRN verification, avoids compliance issues, and keeps your operations fully aligned with UAE VAT regulations.

    How to Verify a TRN in the UAE?

    TRN verification is a simple online process that helps you confirm whether a business is VAT-registered with the Federal Tax Authority (FTA). Whether you’re validating a supplier or doing a routine compliance check, TRN verification in the UAE can be done by anyone in just a few minutes.

    Here’s how to complete a TRN check smoothly:

    Step 1: Access the FTA Portal

    Visit the official Federal Tax Authority website. On the homepage, locate and select the “TRN” option from the side panel.

    Access the FTA Portal

    Step 2: Enter TRN Details

    Input the Tax Registration Number in the required field, complete the captcha for security verification, and click Search.

    Enter TRN Details

    Step 3: Confirm Business Information

    The system will display the registered business name associated with the TRN. Match these details with your records to ensure accuracy.

    Confirm Business Information

    This process applies nationwide and is commonly used for TRN verification in Dubai and other emirates. Regular TRN verification helps businesses avoid errors, ensure VAT compliance, and maintain transparent transactions.

    What Is the Purpose of a TRN and VAT in the UAE?

    After a business successfully completes VAT registration, the Federal Tax Authority (FTA) issues a Tax Registration Number (TRN) along with an official TRN certificate. This certificate authorises the company to file VAT returns within the timelines set by the FTA and confirms its legal status as a VAT-registered entity.

    Holding a valid TRN allows a business to:

    • Build trust with large corporations and government entities, as many prefer working only with TRN-registered vendors
    • Strengthen its banking profile when opening or maintaining corporate bank accounts
    • Officially represent the company before foreign authorities, partners, and international institutions

    How can Shuraa Tax support you?

    To avoid penalties, you can employ a reputable consulting firm that can provide end-to-end solutions for TRN registration, from assessment to procurement.

    For a better grasp of the TRN requirements, Shuraa Tax can assist your business in navigating the extensive guidelines of the UAE’s new tax law. With our assistance, you can establish a tax structure for your business that will save you time, mitigate risks, and safeguard your assets.

    📞 Call: +(971) 44081900

    💬 WhatsApp: +(971) 508912062

    📧 Email: info@shuraatax.com

  • VAT Returns in UAE: Simplified Guide for Businesses

    VAT Returns in UAE: Simplified Guide for Businesses

    The implementation of the Value Added Tax (VAT) system in the United Arab Emirates (UAE) has made it essential for businesses to accurately file VAT returns in UAE and comply with tax regulations. A VAT return in UAE is a formal declaration of a company’s taxable sales and purchases within a specific period. Ensuring timely VAT return filing in UAE helps businesses maintain compliance and avoid penalties.

    All taxable businesses must submit UAE VAT returns by the deadline, typically the 28th of the month following the relevant tax period. Failure to do so may result in fines or legal consequences. Understanding the UAE VAT return format is crucial, as it ensures accurate VAT reporting on sales, purchases, and other taxable transactions.

    This guide provides a step-by-step approach to VAT return filing in UAE, covering the VAT return form, submission procedure, and key considerations for businesses to meet their tax obligations efficiently.

    What is a VAT return in UAE?

    A VAT return in UAE is an official document that VAT-registered businesses must submit to the Federal Tax Authority (FTA), reporting the VAT collected on taxable supplies and the VAT paid on expenses. This process, known as VAT return filing in UAE, helps businesses calculate their net VAT payable or refundable.

    VAT returns UAE typically follow a quarterly or monthly filing schedule, depending on the business’s tax registration details. Timely submission of UAE VAT return is crucial to avoid penalties and ensure compliance with UAE tax laws. The VAT return form includes total sales, purchases, output VAT, input VAT, and the final VAT amount payable or reclaimable.

    What is a VAT Return Form?

    The Form VAT 201 in the UAE is broadly categorised into seven sections, each serving a specific purpose in reporting taxable sales and purchases. These sections are:

    1. Tax Period: It will be auto captured.
    2. Output VAT: This section reports the VAT collected on taxable sales. Businesses must provide the total value of standard-rated sales, zero-rated sales, and exempt sales, along with the corresponding VAT amounts. It is obligatory to mention local taxable sales emirates-wise and corresponding VAT.
    3. Input VAT: Businesses report the VAT paid on eligible business purchases. This includes input VAT on goods and services acquired for business purposes, which can be offset against the output VAT liability.
    4. Adjustments: If any adjustments need to be made to previously reported amounts, harmful debt adjustments, or adjustments in the capital scheme. This section allows businesses to provide details and explanations for such changes.
    5. Import details: Descriptions 3, 6 and 7 mention imports of goods and services and adjustments. Details of imports linked with TRN will auto-populate.
    6. Total VAT Due and Refunds: Businesses calculate the net VAT liability or the refundable amount by subtracting the input VAT from the output VAT. This section displays the total VAT due or the refundable VAT, if applicable.
    7. Profit margins: The business needs to mention if the profit margin scheme is applied for the reportable tax period.
    8. Declaration and Signature: The final section requires the authorised person to declare the accuracy of the information provided and affix their signature, acknowledging their responsibility for the contents of the VAT return.

    By organising the VAT returns in UAE into these distinct sections, Form VAT 201 streamlines the reporting process, ensuring that businesses can accurately report their taxable sales and purchases in a structured manner.

    Who must file a VAT return in UAE?

    Businesses registered under VAT in the UAE must comply with VAT return filing in UAE regulations. The UAE VAT return must be filed by taxable businesses and individuals whose taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. Additionally, voluntary registration is allowed for businesses with taxable supplies exceeding AED 187,500.

    The VAT return in UAE is typically filed every quarter, though some businesses may be required to file monthly. The Federal Tax Authority (FTA) mandates that companies submit their VAT returns UAE through the FTA portal, ensuring accurate reporting of output VAT (collected from customers) and input VAT (paid on purchases).

    Failure to meet the VAT return deadlines can result in penalties, making it crucial for businesses to comply with UAE tax regulations.

    Key Filing Dates for VAT Returns in the UAE

    The key filing dates for VAT returns in the UAE are as follows:

    1. Monthly and Quarterly Deadlines: For both monthly and quarterly VAT returns in the UAE, the deadline for filing is set as the 28th day of the month following the end of the VAT return period. For example, if you are filing a quarterly VAT return for the period from February to April, the deadline for filing this return would be the 28th of May. In the case of public holidays or weekends on the 28th day, then deadlines will be extended to the following working day.
    2. First Tax Period: The first tax period can vary for each business based on individual instructions received from the Federal Tax Authority (FTA). For instance, if your first tax period is from January 1 to January 31, you must file your VAT return for this period on or before February 28/29. If your first tax period is Jan- Mar 23, then VAT return will be due by 28th April (or the next business day if February 28 falls on a public holiday or weekend).
    3. Extended Tax Period: In some cases, the first tax period for a business may span more than three months. For example, if your first tax period is from January 1, 2018, to April 30, 2018, you must file your VAT return on or before May 28, 2018 (If May 28 falls on a public holiday or a weekend, the deadline for filing the VAT returns in the UAE, whether it is monthly or quarterly, is extended to the next business day).

    Businesses must adhere to these essential filing dates to ensure the timely submission of VAT returns and avoid any penalties or non-compliance issues.

    Details Required to File VAT 201 Return Form

    To file a VAT 201 Return Form in the UAE, you need the following details:

    Taxable Person Details

    Sales and Output Tax

    • Standard Rated Sales (5%): Domestic sales subject to VAT
    • Zero-rated Supplies: Exports, education, healthcare, etc.
    • Exempt Supplies: Certain financial services, residential properties, etc.
    • Reverse Charge Transactions: Imported goods/services where the buyer pays VAT
    • Adjustments (if any): Discounts, bad debts, etc.

    Purchases and Input Tax

    • Standard Rated Purchases (5%)
    • Reverse Charge Mechanism Purchases
    • Imports from GCC & Non-GCC countries
    • Recoverable Input Tax (VAT paid on expenses that can be claimed)

    VAT Payable or Refundable Calculation

    • Total Output VAT (VAT collected from customers)
    • Total Input VAT (VAT paid on purchases)
    • Net VAT Payable or Refundable (Output VAT – Input VAT)

    Additional Information (if applicable)

    • Any voluntary disclosures for corrections from previous returns
    • Tax Credit Notes for returned goods or services
    • Penalties or Adjustments applied by the FTA

    Payment Details

    • Amount to be paid to the FTA (if VAT payable)
    • Bank details for refund (if VAT refundable)

    Overview of Sections in the VAT Return Form: Pre-Populated Data and Taxpayer Details

    • Main Section: Pre-Populated Data The main section of the VAT Return Form contains pre-populated details specific to your business. This includes information such as the form type, Address, Contact number, and submission date. The details are automatically filled in based on your data, ensuring accuracy and efficiency in the filing process.
    • Taxable Person Details Section: The Taxable Person Details section captures essential information about your business. It includes your Tax Registration Number (TRN), the Company’s name in both English and Arabic, the registered address or place of residence of your business, the name of the tax agency, the Tax Account Number (TAN), the name of the tax agent, and the Tax Agent Approval Number (TAAN). These details are also pre-populated based on the information provided during registration.
    • VAT Return Period Section: The VAT Return Period section displays essential details related to the tax year and the specific VAT returns in UAE period, whether monthly or quarterly. It also includes the VAT return period reference number, which allows you to make adjustments and recover tax at the end of the tax year based on any necessary corrections made throughout the year.

    Step-by-Step Guide to Filing VAT Return in UAE Using Form VAT 201

    Below are the steps to file VAT return in UAE using form VAT 201

    Step 1: Accessing the VAT Return Form 201 on the FTA e-Services Portal

    To start the VAT return filing in UAE, follow these steps:

    • Log in to the FTA EmaraTax e-Services portal using your registered username and password.
    • Go to the Form Navigation menu and select your company name.
    • Click on ‘VAT’ from the menu on the left.
    • Select ‘My Filings’ and then ‘View All’.
    • Find the unfiled return (it will not have a VAT reference) and click ‘File’ under the action column.
    • Click ‘VAT 201 – New VAT Return’ to begin.
    • Tick the confirmation box to indicate you have read the instructions.
    • Click ‘Start’ to proceed.

    Step 2: Taxable Person Details

    • This section auto-fills the taxpayer’s TRN (Tax Registration Number), name, and address.
    • If a tax agent is filing on behalf of the taxpayer, their details can be added.

    Step 3: VAT Return Period

    • This section automatically includes details such as:
    • VAT return period (e.g., monthly or quarterly).
    • Tax year-end.
    • Reference number and VAT return due date.

    Step 4: Reporting VAT on Sales and Other Outputs

    This section captures VAT on all sales and supplies made during the VAT filing period in UAE.

    • The information is displayed in a table format:
    • Total Transaction Amount (AED) – Total invoice value, including any adjustments.
    • VAT Amount Collected (AED) – VAT collected from sales.
    • Adjustments (AED) – Any changes in VAT due to credit notes or corrections.
    • You must also provide details of taxable supplies in each Emirate, including:
    • Standard-rated supplies
    • Zero-rated and exempt supplies
    • Reverse charge mechanism supplies

    Step 5: VAT on Expenses and All Other Inputs

    This section captures purchases and expenses where VAT is paid.

    • Details include:
    • Total Purchase Amount (AED) – From purchase invoices, including adjustments.
    • Recoverable VAT Amount (AED) – VAT you can claim as a refund.
    • Adjustments (AED) – Modifications to input tax from earlier periods.

    Step 6: Net VAT Due

    This section calculates how much VAT you owe or can reclaim.

    • Box 12: Total VAT due for the period (from the sales and outputs section).
    • Box 13: Total VAT recoverable (from expenses and inputs section).
    • Box 14: Net VAT payable or refundable.
    • If Box 12 > Box 13, you need to pay VAT.
    • If Box 12 < Box 13, you can request a refund or carry the balance to the next VAT filing period in UAE.

    Step 7: Additional Reporting Requirement

    • If your business used the Profit Margin Scheme, report it here.
    • If not, select ‘No’ and move to the next section.

    Step 8: Declaration and Authorized Signatory

    • Enter the authorised signatory’s details.
    • Tick the declaration box to confirm accuracy.
    • You can save it as a draft or submit the VAT return.
    • Once submitted, the FTA will send a confirmation email.

    By following this step-by-step VAT return filing in UAE guide, businesses can ensure compliance with UAE VAT laws and submit their UAE VAT return efficiently.

    Documents required for VAT Return filing in the UAE

    For VAT return filing in the UAE, businesses must prepare and submit specific documents to ensure compliance with the Federal Tax Authority (FTA). The key documents required include:

    Tax Invoices and Credit Notes

    • Sales invoices issued to customers
    • Purchase invoices received from suppliers
    • Credit notes for returned goods or discounts

    VAT Return Form (Form 201)

    • Completed VAT return form available on the FTA portal

    VAT Ledger and Reports

    • Output VAT report (VAT collected on sales)
    • Input VAT report (VAT paid on purchases)
    • Summary of taxable and exempt supplies

    Bank Statements

    • Proof of VAT payments and receipts

    Import and Export Documents

    • Customs declarations
    • Import VAT statements from the FTA (if applicable)

    Financial Statements (Optional but Recommended)

    • Profit and loss statement
    • Balance sheet

    Penalties Associated with VAT Returns in UAE

    The Federal Tax Authority (FTA) in the UAE imposes penalties for non-compliance with Value Added Tax (VAT) return regulations. These penalties apply to businesses that fail to meet VAT obligations, including late filings, incorrect submissions, and tax evasion. Below are the key penalties associated with VAT returns in the UAE:

    Late VAT Return Filing

    • AED 1,000 for the first offence.
    • AED 2,000 for subsequent offences within 24 months.

    Late VAT Payment

    • 2% of the unpaid tax is charged immediately after the due date.
    • 4% per month is charged on the outstanding amount if unpaid within a month.

    Incorrect VAT Return Submission

    • AED 3,000 for the first offence.
    • AED 5,000 for repeated offences.

    Failure to Maintain Records

    • AED 10,000 for the first offence.
    • AED 20,000 for subsequent offences.

    Failure to Voluntarily Disclose Errors

    • 5% to 50% of the unpaid tax (depending on when the error is disclosed).

    Incorrect Tax Invoice Issuance

    • AED 5,000 per incorrect invoice issued.

    Failure to Register for VAT (if required)

    • AED 10,000 penalty for failing to register.

    Failure to De-Register for VAT (if required)

    • AED 1,000 penalty, increasing by AED 1,000 per month, up to AED 10,000.

    VAT compliance is crucial for businesses in the UAE. Ensuring timely filing, accurate records, and proper tax invoices can help avoid hefty penalties. If you need VAT assistance, Shuraa Tax can help with VAT registration, filing, and compliance.

    VAT Return Filing in Dubai, UAE

    Filing a VAT return in UAE is a detailed and intricate process that requires careful attention. It is crucial for businesses to seek expert advice before submitting their VAT return to avoid potential errors that may result in substantial fines and penalties imposed by the Federal Tax Authority (FTA).

    Shuraa Tax is a reputable audit and accounting company based in Dubai, offering reliable VAT Return Filing Services that comply with FTA regulations. Contact Shuraa Tax Consultants right immediately to file a VAT return in Dubai! All you need to do is contact us at info@shuraatax.com or +971 508912062.

    FAQs

    Q1. What is the due date to submit VAT return in UAE?

    The 28th of the month following the end of the tax period.

    Q2. What will be the consequence of not filing the VAT return?

    Penalties, fines, and possible restrictions on business operations.

    Q3. If I don’t have any sales and purchases during the tax period, what should I do?

    Submit a nil VAT return to avoid penalties.

    Q4. Who is liable for monthly and quarterly returns submission?

    Businesses assigned a monthly or quarterly tax period by the FTA based on turnover.

    Q5. What is an advantage for a company to register for VAT?

    Legitimacy, input VAT recovery, and compliance with UAE tax laws.

    Q6. When are VAT returns due?

    By the 28th of the following month after the tax period ends.

    Q7. How to file a VAT return?

    Log in to the FTA portal, complete the VAT201 form, and submit it online.

    Q8. What information is required to file a VAT return?

    Sales, purchases, VAT collected, VAT paid, and any adjustments.

    Q9. How to calculate VAT liability?

    VAT liability = Output VAT (collected) – Input VAT (paid).

  • VAT Penalty Waiver in the UAE

    VAT Penalty Waiver in the UAE

    The UAE’s Value Added Tax (VAT) system, implemented in 2018, established a structured approach to tax compliance. While this system benefits the UAE’s commercial landscape, compliance errors can sometimes result in administrative penalties for businesses. The Federal Tax Authority (FTA) recognises this and offers a VAT Penalty Waiver in UAE as a remedy for organisations with justifiable reasons for non-compliance. This waiver allows businesses in Dubai and other Emirates to reduce or eliminate their penalty burden, enabling them to focus on growth.  

    This guide provides insights into the VAT Penalty Waiver in UAE, including its benefits, eligibility criteria, application procedures, and how professional tax consultants can assist in navigating this process.

    VAT Reconsideration Services In UAE 

    VAT Reconsideration Services in UAE provide professional assistance to businesses and individuals who wish to challenge VAT penalties imposed by the Federal Tax Authority (FTA). These services are especially beneficial for those who believe the penalty was issued in error or due to factors beyond their control, such as administrative mistakes or unexpected delays. 

    Key Features of VAT Reconsideration Services in UAE: 

    1. Expert Guidance: Tax consultants and agents with knowledge of UAE tax laws help applicants understand the FTA’s requirements and navigate the reconsideration process.
    2. Document Preparation: Professionals assist in gathering and organising supporting documents, such as proof of payment, compliance records, or explanations of the circumstances that led to the penalty.
    3. Detailed Explanation of Cases: VAT reconsideration services in UAE involve drafting clear, concise explanations that outline the reasons for reconsideration, presenting the most robust case for a penalty waiver or reduction.
    4. Timely Submission: Experts ensure that reconsideration requests are submitted within the FTA’s 20-day window to avoid rejections due to missed deadlines.
    5. Compliance with FTA Standards: By adhering to the FTA’s guidelines, these services increase the likelihood of success in reconsideration applications, minimising the risk of repeated penalties.

    Using VAT reconsideration services in UAE can save businesses time and effort while significantly improving their chances of obtaining favourable outcomes in VAT penalty reconsideration in Dubai or other Emirates. 

    Who Can Apply for VAT Penalty Reconsideration? 

    VAT penalty reconsideration in Dubai allows businesses and individual taxpayers to contest fines issued by the Federal Tax Authority (FTA) when they believe the penalties were unfairly applied due to legitimate mistakes or circumstances beyond their control. Through VAT reconsideration services in UAE, taxpayers can seek guidance to ensure their application is accurate, complete, and submitted within the FTA’s 20-day deadline from the penalty issuance date.  

    To apply for VAT penalty reconsideration in Dubai, applicants must submit a reconsideration form and a detailed explanation of their case, supported by evidence, on the FTA’s e-portal. This includes documentation that clarifies the cause of the error, such as delayed filings, administrative mistakes, or technical difficulties. Companies often rely on VAT penalties and reconsiderations in Dubai services to improve their chances of success by structuring a persuasive argument and ensuring compliance with FTA requirements.  

    These services guide applicants in presenting accurate documentation and understanding FTA standards, making the VAT reconsideration process smoother and enhancing the possibility of penalty adjustments or cancellations. 

    What is the VAT Penalty Waiver in UAE? 

    The VAT Penalty Waiver in UAE is an initiative by the Federal Tax Authority (FTA) allowing businesses to request a reduction or exemption from penalties incurred for VAT non-compliance.  

    Designed to alleviate financial pressure and encourage a proactive approach to compliance, this waiver supports companies striving to maintain economic stability. The UAE reinforces its commitment to promote a supportive and business-friendly environment through this initiative. 

    Key Benefits of VAT Penalty Waivers in UAE 

    The benefits of VAT penalty waivers in UAE are as follows: 

    Financial Relief 

    The VAT penalty waiver reduces or eliminates administrative penalties, freeing businesses from substantial financial liabilities and easing compliance-related expenses. 

    Opportunity for Correction

    This waiver allows companies to correct compliance issues without severe penalties, encouraging better adherence to VAT regulations in the future. 

    Strengthened Business Continuity 

    With reduced penalties, companies can focus resources on growth and continuity instead of diverting funds to cover financial liabilities. 

    Who Qualifies for a VAT Penalty Waiver in UAE? 

    The FTA provides specific eligibility criteria to qualify for the VAT penalty waiver in the UAE, including: 

    Legitimate Reason for Non-compliance 

    Applicants must provide a valid and genuine reason for non-compliance. Acceptable reasons include inadvertent errors or circumstances beyond control that affected timely compliance. 

    Prompt Rectification 

     Businesses seeking a VAT penalty waiver in Dubai or any other Emirate must address and correct compliance issues as soon as possible to demonstrate their commitment to meeting VAT requirements. 

    Cooperation with the FTA  

    The FTA values applicants’ cooperation during the review process, considering it part of the eligibility criteria. 

    Steps to Apply for VAT Penalty Waivers in UAE 

    Here’s a step-by-step guide on how to apply for the VAT penalty waiver:  

    Step 1: Submission of Application

    Companies can submit their application to the FTA, which should include a detailed explanation of the reason for non-compliance and necessary supporting documents. 

    Step 2: Meeting Submission Deadlines

    The FTA requires waiver applications to be submitted within 40 business days of the conclusion of the non-compliance event. Timely filing is crucial to avoid additional penalties. 

    Step 3: Supporting Documentation

    All applications should include relevant documentation, such as invoices, signed declarations as per FTA standards, and financial records to validate the non-compliance reason. 

    Step 4: Consistent Communication

    Applicants should maintain open communication with the FTA throughout the waiver review process. 

    Essential Criteria and Waiver Options

    The essential criteria and waiver options are as follows:  

    Authorised Representatives

    Businesses can apply for the waiver via an authorised tax advisor, registered tax agent, or legal representative. Only the designated Representative Member is eligible to apply for companies part of a Tax Group. 

    Penalty Installment Options

    Companies meeting specific conditions, such as having penalties above AED 50,000, can apply for instalment payments, provided there are no ongoing disputes with the FTA. 

    Penalty Reduction or Exemption Eligibility

    According to Cabinet Decision No. 51 of 2021, businesses may request a penalty reduction or exemption if they meet specific criteria, like significant challenges impacting compliance, such as illness, death, or systemic FTA communication errors. 

    VAT Penalty Waiver Timeline  

    The FTA follows a structured timeline for processing VAT penalty waivers: 

    1. Review of Application: Within 40 working days of submission, the FTA reviews the waiver request. 
    2. Decision Notification: The FTA issues a decision within 20 working days of the review completion. 
    3. Taxpayer Notification: Companies are notified of the decision within 10 days of issuance. If no notification is provided, the waiver request is considered denied. 

    Additional Mechanisms for VAT Penalty Waivers in UAE 

    The additional mechanisms for VAT Penalty waivers in the UAE are as follows:  

    1. VAT Reconsideration Submission: Businesses can request VAT reconsideration for penalty relief if they believe the penalty was applied in error or if they can provide justifiable reasons. 
    2. Appeal to Tax Dispute Resolution Committee (TDRC): If the FTA denies the VAT penalty reconsideration, companies can appeal to the Tax Dispute Resolution Committee (TDRC) within 20 days of the decision. 
    3. Application for Reduction or Exemption: As per Cabinet Decision No. 51 of 2021, companies may request penalty reductions or exemptions, provided they meet specific conditions such as unintentional errors or force majeure circumstances. 

    The VAT Penalty Waiver in UAE is a crucial tool for businesses seeking financial relief and compliance correction opportunities. By reducing financial liabilities, offering a second chance at compliance, and supporting business continuity, the waiver program demonstrates the UAE’s dedication to a supportive and resilient business ecosystem.   

    Whether your business is new or established, understanding and utilizing VAT penalty waivers can be invaluable in maintaining compliance and focusing on growth in the UAE. 

    How Professional Assistance Can Help with VAT Penalty Waivers in Dubai, UAE 

    Navigating VAT compliance and penalty waivers can be challenging for companies, especially those unfamiliar with UAE tax regulations. Working with expert tax consultants, like Shuraa Tax Consultants, can streamline the process. With extensive knowledge of the UAE’s tax system, Shuraa’s team can assist companies with the VAT penalty waiver application, help resolve penalties and ensure long-term compliance.  

    Get in Touch 

    For assistance with VAT Penalty Waivers or VAT Penalty reconsideration in UAE, contact Shuraa Tax at +971 508912062 or email info@shuraatax.com.

    Additional Services We Offer: 

    Corporate Tax Registration  Bookkeeping & Accounts Outsourcing    
    Corporate Tax return filing services  Accounts Review Services  Tax Residency Certificate 
    Excise Advisory and return filing  MIS Reporting & Compliance Services  Economic Substance Reporting 
    Excise Tax Registration  Payroll Services  Feasibility Study Reporting 
    Tax Compliance Service  Budgeting services  AML registration 
    Tax Penalty Appeal  VAT registration in UAE   

    FAQs 

    Q1. What is the timeframe for applying for a VAT penalty waiver in Dubai, UAE? 

    The application for a VAT penalty waiver in UAE should be filed within 40 business days of receiving the penalty notification. 

    Q2. Are there any penalties that cannot be waived?

    Some penalties, such as repeated offences, tax evasion, or intentional non-compliance, may not be eligible for a waiver. The FTA assesses each case individually. The waiver is approved only if the authority justifies the reason. The penalties applied were delayed.

    Q3. Can a business apply for a waiver of multiple penalties in the UAE?

    Yes, businesses can apply for a multiple VAT penalties waiver if they meet the eligibility criteria and can demonstrate genuine reasons for non-compliance.

    Q4. Does the VAT penalty waiver scheme apply to all types of businesses?

    Yes, the VAT penalty waiver scheme is available to all businesses registered for VAT in the UAE, regardless of size or sector.

    Q5. Are there any specific documents required for the VAT penalty waiver application?

    While the required documents may vary depending on the circumstances, generally, businesses should include relevant invoices, declarations, financial statements, or any other evidence supporting the genuine reason for non-compliance.

  • Documents Required for VAT registration in Dubai

    Documents Required for VAT registration in Dubai

    Documents required for VAT registration will be submitted to the Federal Tax Authority (FTA) via a web portal. To obtain the Tax Registration Number (TRN) for the firm, several conditions for VAT registration in the UAE must be met.  

    If a company’s taxable supply and imports surpass the statutory registration level of AED 375,000, it must register for VAT. Furthermore, a company may voluntarily register for VAT if the total amount of its taxable supplies and imports (or taxable costs) exceeds the AED 187,500 voluntary registration threshold.  

    Penalties may apply for non-compliance with the UAE VAT Executive Regulations and law. There is also the risk of a firm losing its legal position and consumer confidence due to noncompliance with regulatory requirements.   

    What is VAT in the UAE? 

    Value Added Tax (VAT) in the UAE is an indirect tax applied to most goods and services at each stage of the supply chain. Simply put, it’s a small percentage added to the price of products or services when they’re sold. Introduced on January 1, 2018, VAT is currently charged at a standard rate of 5%. Businesses collect this tax on behalf of the government and later remit it to the Federal Tax Authority (FTA). 

    VAT plays a crucial role in supporting the UAE’s vision to reduce its reliance on oil revenue and build a sustainable economy. While it may seem like a small addition, VAT helps fund essential public services such as healthcare, education, and infrastructure, ultimately contributing to the country’s long-term growth and stability. VAT in the UAE ensures that everyone contributes a fair share to the nation’s development while maintaining a transparent and balanced tax system. 

    What is VAT Registration? 

    VAT registration is the official process through which a business becomes recognised by the Federal Tax Authority (FTA) as a taxpayer in the UAE. Once registered, the company is authorised to collect VAT from customers on taxable goods and services and remit it to the government. In simpler terms, VAT registration gives a business its Tax Registration Number (TRN), a unique ID used for all VAT-related transactions, invoices, and filings. 

    Businesses in the UAE must register for VAT if their annual taxable turnover exceeds AED 375,000, which is the mandatory registration threshold. However, those with turnover above AED 187,500 but below the required limit can register voluntarily to claim input tax and enhance business credibility. Registering for VAT ensures compliance with UAE tax laws and builds trust with clients and authorities, a key step for any business operating in the country’s evolving financial landscape. 

    Mandatory vs Voluntary VAT Registration in the UAE 

    When it comes to understanding VAT registration requirements in the UAE, it’s essential to know that businesses can either register mandatorily or voluntarily depending on their turnover and taxable activities. Let’s break down the two types and why they matter for your business. 

    1. Mandatory VAT Registration in the UAE 

    If your business is growing rapidly, this part concerns you. Mandatory VAT registration applies when your total taxable supplies and imports in the past 12 months exceed AED 375,000. 

    Alternatively, if you expect your business turnover to cross this threshold within the next 30 days, you must register as well. This rule ensures that all qualifying businesses remain compliant with the VAT registration requirements set by the Federal Tax Authority (FTA) in the UAE. 

    However, it’s important to note that this threshold doesn’t apply to foreign businesses operating in the UAE; they follow different VAT obligations. 

    2. Voluntary VAT Registration in the UAE 

    Not hitting the mandatory limit doesn’t mean you’re out of the VAT system. In fact, smaller businesses can still register voluntarily, and there are good reasons to do so. 

    If your taxable supplies and imports or even taxable expenses over the past 12 months exceed AED 187,500, or if you expect to cross that in the next 30 days, you can apply for voluntary VAT registration. 

    This gives startups and small enterprises a strategic edge by allowing them to claim VAT refunds on business purchases and establish credibility in the market. 

    Why does VAT Registration Matters Businesses in the UAE? 

    Whether your registration is mandatory or voluntary, completing your VAT registration is not just about compliance; it’s about building business credibility. 

    Here’s why it’s so important: 

    • It ensures your business complies with the UAE’s tax laws. 
    • You can reclaim VAT paid on business expenses, reducing operational costs. 
    • Being VAT-registered boosts your company’s image, showing you operate transparently and professionally. 
    • It allows seamless transactions with other VAT-registered companies in the UAE. 

    Ignoring VAT registration can be costly. Businesses that fail to register or file VAT returns face a fine of AED 10,000, plus AED 1,000 per tax period for missed returns. Additionally, non-registered companies lose input tax credits, directly affecting their profits. 

    Documents Required for VAT Registration in the UAE 

    Businesses must complete the required documentation to register for VAT in the UAE. VAT registration and fee payment (for paid services) will be completed online. The documents listed below are necessary for VAT registration in the UAE.  

    • Business Trade License or Commercial License   
    • Passport copies of the owner or partners of the company mentioned on the license 
    • Emirates ID of the owners/ partners of companies (as per the business license)  
    • Memorandum of Association (MOA)  
    • Complete Company Address  
    • Authorised Signatory’s Contact with email, number  
    • Company Bank Details, including IBAN letter 
    • Details of branch (if any)  
    • Turnover Declaration (Signed & Stamped by the owner or the manager)  
    • Amount of the expected revenue, turnover, and taxable expense for the next 30 days   
    • To specify if the Company does GCC export or import   
    • Provide the custom code along with a copy of the Dubai Customs letter (if any) 
    • Specify if your company would like to be registered as a tax group   
    • As per the Federal Tax Authority, you may also require additional documents or authorisation depending on your business activity, the jurisdiction of your business and other such factors.  

    What is the Timeline for VAT Registration? 

    The materials will be submitted electronically. Upon completing online VAT registration, you will receive your Tax Registration Number (TRN) from the Federal Tax Authority (FTA). The Processing time is 20 business working days from the date of sharing complete information with FTA. The application may take longer if additional details are required.   

    What is the Significance of VAT Registration in Dubai?   

    Paying taxes is viewed by some business owners as an expense. They have no idea that registering their businesses for VAT might bring several benefits.   

    • It raises the company’s profile. Companies may, of course, show their VAT registration to key stakeholders and business associates, thereby enhancing their credibility and customer preference. Customers are more inclined to prefer a company that has registered for VAT than one that does not.   
    • Tax avoidance is sometimes considered a crime, and if found guilty, the corporation may face severe financial penalties in case of non-compliance or delayed compliance. Registering your business for VAT in Dubai avoids these situations and ensures your firm grows while also benefiting society. 
    • It should be underlined that VAT is not intended to burden enterprises. VAT refunds are available in certain instances. 
    • Overall, it helps the company capture a broader market and boost its reputation, thereby expanding its client base.  

    Required Documents for Tax Group Registration  

    Businesses in the UAE can make a tax group registration application. Several enterprises of various types can also form a tax group. According to the Federal Tax Authority (FTA), if entities are related to parties with a common ownership of 50% or more, then all those companies can be combined into one tax group. The FTA will issue a single TRN for the entire group of companies. Group structure, no objection letter, and turnover declaration need to be submitted.  

    How do I register for VAT in Dubai?  

    Online registration for VAT is available. To register for VAT, individuals or businesses must first create an account on the Federal Tax Authority (FTA) website.  

    Several official documents are needed for VAT registration. Before submitting a VAT registration application to the FTA, a few crucial documents must be attached to the application. After the Tax Registration Number (TRN) has been approved, a VAT Certificate will be issued. A distinctive, specific Tax Registration Number (TRN) will be assigned to each VAT certificate.  

    How to Register a Tax Group in the UAE? 

    Only the group’s representative company may apply for tax group registration. A representative firm of the group must apply for VAT registration. Each potential member of the Tax Group is required to:  

    • Being a person of law (not a natural person)  
    • Be a UAE resident who is not a part of another Tax Group.  
    • Must have a place of establishment or a fixed establishment in the UAE  
    • Must be a related party of the group members and the representative  
    • One or more persons conducting business in a partnership must control the others  

    How to Register for a Tax Registration Number in the UAE? 

    If you’re running a business in the UAE, one of the first steps after understanding VAT is getting your Tax Registration Number (TRN). This number is issued by the Federal Tax Authority (FTA) and acts like your business’s unique tax identity; it’s what officially makes your company recognized for VAT purposes. 

    Getting a TRN might sound complicated, but the process is actually straightforward if you know what to expect. Here’s a simple, step-by-step guide to help you through it: 

    Step 1: Create an FTA e-Services Account 

    Start by visiting the Federal Tax Authority’s official website — https://tax.gov.ae. 
    Click on “Sign Up” to create your e-Services account. You’ll need to provide basic details like your email address and set a password. Once you confirm your email, you can log in and start your tax registration journey. 

    Step 2: Begin Your VAT Registration Application 

    After logging in, head to the “VAT Registration” section. This is where you’ll fill out the form to apply for your TRN. Make sure you have all your business details ready, including: 

    • Your trade license number and copy 
    • Owner’s Emirates ID or passport copy (for non-residents) 
    • Contact details (email, phone, address) 
    • Bank account details 
    • Financial records showing your turnover 

    These details help the FTA verify your eligibility for VAT registration. 

    Step 3: Fill Out the VAT Application Form 

    Now comes the main part, completing the VAT registration form. The form will ask for information about your business structure (LLC, sole establishment, etc.), business activities, and financial data. You’ll also need to specify whether your registration is mandatory or voluntary, based on your annual taxable supplies. 

    Note: Be careful here; any incorrect information could delay your TRN approval. 

    Step 4: Submit the Application 

    Once you’ve filled everything out and attached all required documents, review the form carefully. After double-checking, click “Submit for Approval.” 

    The FTA will then review your application, which can take anywhere between 5 to 20 working days, depending on the accuracy of your submission and current processing times. 

    Step 5: Receive Your TRN Certificate 

    If your application is approved, you’ll receive your Tax Registration Number (TRN) via email. You can also download your VAT Certificate from your FTA account. 

    Your TRN will be a 15-digit number; this is what you’ll need to include on your invoices, tax returns, and official documents related to VAT. 

    Why Shuraa tax?  

    Businesses must create an online account on the FTA website and complete the VAT registration form to register for VAT in the UAE. The documents mentioned above can be uploaded, and the procedure can be completed while registering for VAT on the website. Contact Shuraa Tax Consultants if you are confused about how to proceed or if you have any questions concerning the paperwork necessary for VAT registration in Dubai.  

    Shuraa Tax Consultants provides a complete solution for UAE VAT registration services, including the documentation required for VAT registration in Dubai and throughout the UAE, as well as assistance with the online registration process. Our tax consultants guarantee that the VAT registration procedure is simple. We provide comprehensive counselling in terms of FTA VAT registration online, tax accounting services, financial record keeping, bookkeeping services, corporate taxation, and so forth. Contact Shuraa Tax Consultants right away for UAE VAT implementation! All you need to do is reach out to us at:

    📞 Call: +(971) 44081900
    💬 WhatsApp: +(971) 508912062
    📧 Email: info@shuraatax.com