Vat Registration in Dubai– Procedure, Documents, and Benefits

Being registered under the VAT law means that a business is acknowledged by the government as a supplier of Goods and Services and is authorized to collect VAT from customers and remit the same to the government. Only VAT registered businesses will be allowed to do the following: • Charge VAT on the taxable supply of goods and services. • Claim Input Tax Credit on VAT paid on their purchases, deducted from VAT liability on sales. • Payment of VAT to the government. • Periodic filing of the VAT return.rnVAT, short for Value Added Tax, is a tax levied by the Central Government on the sale of goods and services when sold to the final consumers. Value Added Tax is charged and paid by the producers of the goods and services, but it is finally levied on consumers who purchase them. As the name suggests, it is charged on the value added to a product, and the final customer has to pay it as per the rules and regulations. All business organizations and manufacturing entities need to be registered as per the VAT registration act of the country to VAT annually. Procedure for VAT RegistrationrnThe procedure is quite simple, but there could be minor differences for different states. In India, the Tax credit method is used for Vat assessment and collection. The basic value-added tax rate ranges between 4% and 12.5% for different categories of products and services. The basic steps that are required for the VAT registration procedure are as follows: • The VAT registration application and the required documents need to be filled with complete information and then submitted to the functional local VAT office for VAT registration. • The local VAT office shall inspect the company's premises within three days after submitting the application form. • Once the local VAT consultancy in Dubai has inspected, the relevant professional fee deposit fee needs to be paid. • After the fee deposit payment, the TIN No. will be allotted, and the VAT certificate will be issued within a day. Documents Required For VAT RegistrationrnThe major documents that you will require to submit with your company’s VAT registration arern• Incorporation Certificate of Company (in case of Companies) • MoA (Memorandum of Association)and AoA (Articles of Association) in case of Companiesrn• Details of people involved in the firm. • Company’s Director address proof– Lease / Rental Agreementrn• PAN Card of the company/ Individual PAN card in case of Proprietorshiprn• ID Proof of the Director of the companyrn• Rental/Lease Agreement of Company / Proprietorshiprn• Partnership Deed in case of a Partnership firm- • Passport size Photograph of Director of the firm. The VAT registration process also requires the following documents from a company: • Name of the Dealerrn• Company’s namern• Postal Addressrn• Telephone numberrn• Email idrn• Details of Director/ Managing Director/ Partners / Proprietorrn• Authorized Signatory’s detailsrn• Pan number of the companyrn• Date of Commencement of Businessrn• Date of Birth/ Incorporation (in case of Company) • Nature of Businessrn• Commodities descriptionrn• Bank Account detailsrn• List of Directors (in case of Companies)