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VAT for Free Zone Companies in UAE

VAT Registration for Free Zone UAE

2018 saw the start of VAT compliance in the UAE and now all businesses that have an annual taxable supply in excess of AED 375,000 are required to be registered. These businesses may see a small downturn in their net profit as the VAT comes into play, however, on the plus side, they can claim back all VAT they have spent on goods and services for the business also.

The government have set out different zones within the UAE but are urging all businesses that meet the above criteria to register for VAT whether they are in one of the designated zones or not. The penalty for non-registration is AED 20,000 so it is worth knowing how to complete your VAT registration UAE and also how to complete your VAT return filing in UAE before it’s too late.

To check which zone you fall under you can contact the Federal Tax Authority. But even doing this you will find out that anyone in the free zone of JAFZA should also register. They have mentioned that businesses within these zones may receive a different tax rate but so far it is unclear as to what that may be.

If you are registering online you can find a drop-down under “name the authority issued trade license” in which you will see that all customs controlled free zones are included. Registration can be completed multiple ways but in the end, you will need to cross your T’s and dot your I’s to ensure that your registration is complete and correct.

To register for VAT you will need the following documents:

• Your Business bank details
• Details outlining all Businesses you’re associated with over the last 2 years
• Certificate of incorporation / incorporation details
• National Insurance Number (NI) number
• Details of the business that has been transferred (if applicable)

Once you have all these details at hand it’s time to decide how to do your VAT registration in Dubai or surrounding areas. Although online VAT registration is available it is recommended that you seek an accounting company in UAE that deals in VAT to assist you.

JCorp accounting can help you set up your VAT registration and do all your VAT return filing in UAE for you in the future. We have a VAT registration service and offer full accounting services in Dubai and all surrounding areas. To start your registration with a reputable accounting firm in Dubai and avoid any penalties contact us now.