VAT was introduced in the UAE on January 1, 2018, which is a 5% indirect tax imposed on most goods and services that are supplied at every stage of the supply chain. The final consumer bears the cost of this tax. Companies calculate and collect taxes for the government.

VAT is a new source of income for the country, which contributes to ensuring the continuity of high-quality government services in the future. This source of income will help to move towards achieving the UAE’s vision of reducing dependence on oil and other hydrocarbon products as primary sources of revenue.

Companies and institutions pay the tax they collected from customers to the government, and in some cases these companies may recover the tax that they had paid to their suppliers. Consequently, the net result of the tax revenue received by the government is that “value added” throughout the supply chain stages.

The documents required for corporate tax registration

* License

* Approval of the signature

Passport and identity of the authorized signatory

* Power of attorney from the bank, even if the delegate is not the owner or an authorization from the company with the stamp and the approved signature

* Establishment and partnership contract in the case of non-individual companies

* Answer the international account number from the bank in the name of the company or in the name of the owner or authorized to sign

* Proof of income documents from invoices and receipts, preferably serialized, on consecutive dates

* Tax purchases invoices in the name of the company, even if they are attached to serial exchange vouchers with a consecutive date, it is much better to reimburse the tax on the first declaration and calculate the taxable expenses