By the start of 2018, the GCC countries have taken a step forward to open another revenue gate for the nations which ultimately introduced value added tax for the business entities at a rate of 5%. This implementation has been done in order reduce the disruption caused in the business sector as well as to deal the organizational procedures and transactions with a pragmatic approach that requires the suppliers and dealers to hold a VAT certificate. As we all know, Dubai serves to be an international business spot ranging from budding entrepreneurs to existing businesses. It holds multiple free zones that attract millions of investors. Now the question that arises in the minds of investors is ‘Is VAT Certificate a Mandate to do business in Dubai?’ If you are an investor or a business entrepreneur and hold the same question in your mind, then all you need to know is just below.
Is VAT Certificate a Mandate?
According to the IMF estimation, this slight change will boost the VAT revenues by 1.6% of the GDP, providing the nations a more favorable business climate. The Federal Tax Authority (FTA) of UAE has validated that in order to conduct business in UAE, entities do not need to have the presence of a tax certificate. All they need to obtain is a Tax Registration Number (TRN). Let’s understand what TRN is all about.
What Is Tax Registration Number?
Tax Registration Number (TRN) or TIN is a unique eleven digit number allotted by the Commercial Tax Department of every nation. This number becomes a mandate while dealing with VAT related transactions for business entities. Now, it is to be noted that a tax registration certificate can’t be downloaded with the help of a TRN. In order to verify with the FTA, business entities can do the verification process on the FTA website itself, which would suffice the purpose.
The FTA has even provided provisional Tax Registration Number (TRN) for business entities who have submitted the VAT Registration essentials after the set deadline. This enables the business entities to complete the regulation processes within an extended period. The UAE TRN enables the business entities to carry out the business activities and it validates the existence of the entity.
Thus it can be stated clearly that a VAT Certificate doesn’t stand as a hurdle in the process of business establishment in Dubai, although you need to make sure that the business entity holds a TRN. Now, the process of obtaining a TRN also involves paperwork and legal laws that need to abide by. If you are looking forward to obtaining a TRN, it is advisable to have a word with a business consultant who can help you in dealing with the process. Not only that, a professional expert can help you to clear the process in a hassle-free way. Wondering whom to contact? Don’t worry. Your guide is just below.
