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VAT Registration for International Companies selling through Amazon UAE

VAT Registration for International Companies selling through Amazon | Xact Auditing

VAT registration for international companies selling through amazon in UAE is mandatory. VAT registration must be done before making sales in the UAE. 

Businesses that are outside UAE and wish to sell their products in the UAE market by using online platforms like Amazon, Noon, or Souq. They must get registered under VAT before starting to make sales in UAE. 

If you are a non-UAE resident selling goods that are located in the UAE to a UAE customer, then you will be required to register for VAT irrespective of the level of turnover from such sales.

International companies MUST register under VAT and get the VAT number before start selling in UAE through Amazon. 

A non-established business selling goods from the UAE shall be subject to a NIL VAT registration threshold. VAT registration will be effective from the date on which you started making sales in the UAE.

A late VAT registration fine of AED 20,000 will be imposed on international sellers if they apply for Tax Registration Number (TRN) after making sales through Amazon in UAE. 

Can international sellers sell in UAE through Amazon?

Before you begin selling on an Amazon marketplace website in a country outside your business location, you need to provide a bank account in a country supported by Amazon to get paid. Also, you should understand the laws that apply to you as a seller on our website, and you must only list and sell products that comply with those laws. 

The laws may be different from what you are used to in the country of your business location. You should consult with your legal and tax advisers who understand the requirements that may apply to you so that you only offer products on the Amazon marketplace website that:

  • You are permitted to sell,
  • You are permitted to advertise,
  • You can deliver to the customer on time, every time with no customer surprises, and
  • You can support after the sale.

Documents required for VAT Registration for International Companies

To get the Tax Registration Number (TRN), International businesses must submit all the documents required for VAT Registration. For online VAT registration, the following are the documents required for VAT Registration:

  1. Certificate of Incorporation
  2. Passport copy of the owner/manager who owns the trade license. (should not be expired)
  3. Contact Details of the company. (P.O Box and complete address such as building & area)
  4. Memorandum of Association (MOA) – (not mandatory for sole establishments)
  5. Concerned person’s contact details. (Mobile Number, Designation, Email Address)
  6. Bank Details of the company. (Must be company’s bank account – Individual’s bank account will not be accepted) – (Account Name, Account Number, IBAN, Bank Name, Branch Name)
  7. Official proof that E-commerce does not hold the owners of the goods
  8. Declaration of the first sale in UAE

VAT Registration for Amazon Sellers

VAT registration for Amazon sellers in UAE is mandatory by the Federal Tax Authority (FTA). Amazon sellers must register for VAT before start making sales in UAE. More and more businesses are moving towards digital platforms and start selling their business on e-commerce platforms. As per FTA laws, businesses in UAE selling through online channels must charge the standard rate of VAT which is 5%. 

VAT registration services in Dubai, UAE

Xact Auditing is providing the best VAT registration services in Dubai, UAE. Xact Auditing is providing all kinds of VAT services. Our professional tax experts will ensure that you will get the Tax Registration Number (TRN) at the earliest. There are many complexities while doing the VAT Registration and it may lead to heavy VAT fines and penalties. Let Xact facilitate you in all kinds of VAT services and ensure VAT compliance as per FTA laws.

4 Responses to “VAT Registration for International Companies selling through Amazon UAE

  • Someone who’s from Pakistan will register VAT or not if he is an individual seller on Amazon having no company and the required documents you mentioned above for VAT registration. If yes then what documents will be required and how he can register VAT?

    • If you are going to sell through amazon. you must register for VAT.

      – Passport copy
      – Declaration letter
      – Sales Report Screenshot
      – Email
      – Contact number
      – Address

  • What about if an international supplier for services has TRN in UAE? How would you account for the VAT on their supply? Is it reverse charge mechanism or VAT on purchases?

    • If you are vat registered in UAE and you have custom import code than international purchases will be treated as reverse charge mechanism. For VAT services and VAT consultancy, feel free to contact us.

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