The UAE is one of the best places for sellers to expand their business. After the EU, the UAE is the UK’s 4th largest export destination and enjoys 40% of all the UK’s trade with the GCC. With a thriving economy that is growing rapidly, the UAE represents a market that is overlooked too often by foreign sellers. This is likely due to the fact that they only introduced VAT relatively recently and so many exporters are apprehensive about attempting to register for VAT there. However, we at J&P are one of the few accountancy firms that can help you get VAT registered in the UAE. The process is not as difficult as you might think, since we do all the heavy lifting for you. This article will outline how and when to get registered for VAT in the UAE, and how we can help.
UAE VAT Requirements
The current rate of VAT in the UAE is 5%. For resident companies, they only need to register for VAT if their annual sales exceed AED 375,000, or are likely to in the next 12 months.
However, assuming you are a foreign seller, you will have to register for VAT in the UAE if you make any taxable sales there. You will also be required to follow the usual VAT requirements (submitting tax returns, charging for VAT etc.). You must ensure you are registered before making sales, as there is no implementation period.
Some products and services are exempt from VAT such as certain financial services and pharmaceutical products. Be sure to check diligently whether this applies to your product before attempting to export into the UAE.
How To Register For VAT In The UAE
The registration process follows the standard requirements in terms of the information you need to provide. This means basic information like business name and address will be required. Before beginning the application you will also need to create an account on the UAE’s online portal. The application can be filled in in English or Arabic.
As mentioned earlier, the UAE do not take kindly to late submissions, and you can face penalties if your application is late or faulty. The other issue is that, like with all GCC states, you must appoint a fiscal representative in order to export to the UAE.
Luckily, we at J& are experts when it comes to VAT registration and compliance in the UAE and can help you with the process, as well as filing your tax returns. We even have our own fiscal representative in the UAE which means you will not have to find one yourself. Get in contact today for a quote so we can help you expand your business into the UAE.
Other Requirements For Exporting Into The UAE
In order to get your goods through customs you will also need to present a Arab Certificate Of Origin. These certificates are used to confirm where your products are wholly obtained or manufactured. This document must also be in Arabic. Again, this is another service that we can help you with.
With certain products you must also check that reach the standards of the ESMA (the UAE body that sets standards on products going into the UAE). You must always check for any new standards or quality marks required before exporting into the UAE.
Conclusion – VAT Registration In The UAE
So as you can see, whilst the process of registering for VAT in the UAE can be difficult, through employing our services the process is made much simpler, and you can expand your business into one of the fast growing ecommerce economies in the world. You should also take a look at our guide for getting VAT registered in the KSA.
Our long history of working with ecommerce sellers, especially those who use Amazon and eBay, means we can guide you through every step of the registration process. Furthermore, your expansion does not only have to be limited to the Middle-East, as we would be more than happy to help you register for UK & EU VAT and file your UK & EU VAT returns, and help you comply with VAT in case your account faces any issues. So please do not hesitate to send us an e-mail at enquiries@jpaccountant.com or give us a call at 0161 637 1080.
