How to register a used car in Dubai

Cars in Dubai are regarded as a necessity, not a luxury. Dubai has an excellent and expanding public transport system.

Due to the high prices of new cars, used cars are very popular and usually driven by several owners over the years. Even if you opt for a new vehicle, you can sell your old car on the used car market. Due to the overwhelming diversity of the used car market, many people find it easy to successfully sell their car in a short time.

UAE is transitional for many of us and investing in a brand new vehicle might not be economical. Buying a second-hand car is a great option for residents and there are many vehicles at all price ranges, ages and conditions available in the market Here are our top tips to find your dream car, second-hand:

Here are our top tips to find your dream car, second-hand: How to register a used car in Dubai

1. Shortlist brands or models

Many of us already know which brand or manufacturer we prefer in vehicles. It is smart to shortlist two or three brands, or even diverse models in the same brand, at the outset of this process. This decision can be based on cost, possible resale value, maintenance and service costs, passenger numbers and other factors.

2. Find a reputed used car dealer or website

While there are dozens of dealers out in the market, credibility and responsible selling is what you should be going for.

3. RTA checks and tests

So you found your favourite car or shortlisted a few – the next step is to ensure the car is in top working condition. Not all of us are great with motor information and fact checks. Ask for an RTA passing guarantee, which is based on a series of checks and tests to be conducted by RTA-approved testing centres.

These tests ensure that the vehicle is road-worthy and free from any legal hassles. The certificate is valid for thirty days only from date of issue, so you can be sure that it’s a recent check.

4. Complete vehicle check

So you’ve gone over the RTA passing guarantee results and decided on a price with the seller – what next? For the cautious buyer, and everyone looking at a second-hand car, we recommend going for a full vehicle check-up at a garage. The check would include mechanical aspects (engine status and leakages if any), electrical aspects (electrical and computer diagnostics along with air-conditioner, lighting and computer or navigations systems) and full body check up.

A body and paint check is very important here in the UAE. Even one accident and its consequent repair can drive down the value of the car by over 15 per cent. A thorough body inspection with the help of the car’s chassis number (vehicle identification number or VIN) can track accident history.

5. Get on the road

So you’ve paid the seller and got the car freshly registered in your name. Ensure you’ve copies and originals of all the documents with you. Keep any service details, receipts and cards safe, because when it’s time to sell your car, the service history can come in handy to negotiate a fair price for a well-cared for vehicle.

Fines

When buying a second-hand car check that all outstanding fines have been paid for before registering the car. Fines can be checked on the Dubai Police website.

Used vehicles are available privately or from dealers. Because of the transient population, used vehicles are widely available in both in Dubai and elsewhere in the Emirates.

In order to buy a used car in Dubai, the buyer must have a UAE residence visa. In addition, the purchaser should hold a valid Dubai driver’s licence.

Registering a used car- How to register a used car in Dubai

When you are looking to register a used car in Dubai, you need to be aware of the rules and regulations that are associated with it.

Once a vehicle has been purchased the new owner has to insure and then register the car. When buying privately, it is common for the buyer not to hand over any money until the seller can accompany them to register the vehicle.

Criteria

For registration of used car, buyer (must be resident of Dubai) and the seller must be present. In case, the seller is not present, a sale deed letter from an authorised showroom or dealer is required. If the vehicle is from another emirate, the vehicle registration should have been cancelled there. From August 2010, the re-registration can be done from other emirates as well. A vehicle must have a valid certificate for roadworthiness before it can be registered. Only vehicles less than two years old are exempt from testing. After that, vehicles must be tested annually when their registration is renewed. In the case of a private purchase, the buyer should insist that a vehicle be tested before they agree to purchase it.

Tip

You can also check online at the Dubai Police website for any outstanding fines, which the seller should pay, before you register the car in your name.

Documents required

1. Passport (original + copy) or Dubai driving license (original).
   2. Insurance Policy (you may be able to transfer the old policy; if not, get a new one)
   3. If the car is financed through a bank, take the proper documents, including ‘No Objection Letter’, if applicable.
   4. Old registration card (if the registration is expired, the car should be tested at the Traffic Department or at Tasjeel Eppco or Emarat Shamil or Wasel Car Testing)
   5. Original license plates

Procedure

1. Go to Dubai Traffic Department or to Tasjeel Eppco or Emarat Shamil or Wasel Car Testing
   Fill in the form and pay the fees.
   3. Settle the payment of fines, if any, by the seller; the officer will check and confirm this.
   4. Wait for your name to be called out and in a few minutes, collect your new registration card , valid for one year.
   5. Get new plates affixed to vehicle.
   6. Send copies of registration card to your finance & insurance company.

New plates can be obtained from the police or at some EPPCO sites.

Registration = AED 420 ( $ 114.50 ) short number plates, AED 470 ($ 128) long number plates

Fees

Car test Dh50
Registration Dh420 (short number plates)
Dh470 (long number plates)
For more information, visit RTA website. Or call RTA’s toll free number on 8009090.

How to register a used car in Dubai

Car registration is valid for one year, after which it must be renewed. It is possible to renew vehicle registration online with RTA e-services. However, this only applies to new vehicles that do not need testing and vehicles that have already been tested. If vehicle registration has lapsed for two years or more, the Road and Traffic Authority may decide to write off the car. This measure was introduced in October 2010 to ensure the safety of road users.

If you don’t have the time to do your car registration, the RTA has a special service called ‘Personal Appearance Service’. You do a one-time visit to any RTA customer service centre, register your personal details and receive a personal identification number (PIN) on your mobile. You can then send a representative with this PIN to do your RTA licensing work, whether it is for one car or multiple cars under your name. Other transactions that can be done with a PIN include export, transfer and number plate sale, though it must be noted that after your representative’s visit, the PIN expires and for further visits, you will need to do another ‘Personal Appearance Service’ to get another PIN.

Renew driving license, car registration from anywhere 

Beginning August 2010, residents of the UAE will be able to renew their Motor Driving Licences (DL) and re-register their vehicles from anywhere in the country, irrespective of the origin of their documents or vehicles.

The Roads and Transport Authority (RTA) in conjunction with the Abu Dhabi Authorities and Dubai Police, recently launched phase two of a project linking the traffic systems of all the seven emirates. The phase one, which was completed last year, had enabled all emirates to access information regarding traffic offences and fines of all vehicles. Phase one had also enabled motorists to pay their fines from any emirate, irrespective of the place of offence. Taking it further, the phase two of the project, when completed will enable motorists to re-register Dubai No Plate from anywhere in the UAE and No Plates from other emirates in Dubai. The service will also be applicable for other traffic documents. The facility will ensure DLs and other certificates issued by RTA could be renewed from any emirate and vice-versa.

The second phase of the project is to link federal traffic system with Dubai’s,  process to allow renewal of vehicle registration, licences or certificates etc. from any emirate regardless of where it was originally issued.

“For example, if a car is registered in Abu Dhabi and the owner is currently residing in Dubai, then the car can bere-registered from Dubai. The person need not go all the way to the capital, which is currently the case. The same is applicable to other emirates as well.”

Currently there are two traffic systems running in the UAE. One is the Federal system which is followed by all the Emirates and other is the independent system followed in Dubai.

Both the systems are advanced and adhere to international best standards, RTA wants to maintain its own system because the number of vehicles registered in Dubai is very high.

Once the two traffic systems are completely linked, there is also a likelihood that people will be allowed to procure DLs from any emirate regardless of the origin of a person’s work permit.

Affects of Implementation of VAT for Used Cars in UAE:

The used car market of the UAE will notice a remarkable change after the VAT implementation. The demand of used cars will increase as the car buyers will be interested to buy used cars than buying new ones with applied VAT prices, and this increase in demand for used cars will inflate the price of used cars. Used car dealers will try to make a good use of this opportunity to avail maximum profit as customers will look to avoid VAT and increased insurance costs on new cars, even if they have to pay a little more for a used car.

Increase in demand, Increase in Price:

The maximum advantages from the VAT implementation will be availed by the used car dealers. The 5% VAT, once implemented, will push the sales of used cars and that will allow the dealers to ask for higher prices for these used cars. Thus incorporation of VAT   will be a welcoming factor by the used cars dealers.

VAT Calculation

VAT will create a high demand on nearly new used cars as the dealer only pays VAT on the profit. A simple example is that a consumer could purchase a used car, 6 months old, low mileage and two trim levels higher than the original new car which is now priced at AED 105,000 due to VAT for AED 100,000. If the dealer operates and a 9% margin the VAT element is only AED 350

Financial Calculation

Need to upgrade to Reach online VAT Accounting Software : Online Automobile Dealer management Software

Reach can be used  for new and used car dealers to manage their sales and purchase documentation and manage sales comissions across branches.Reach accountant software is properly designed to fit all of the desires for a success running of the enterprise. The software may be used in industries ,buyers ,producers, outlets,  workshop ,commercial enterprise projects and so forth. It’s far an accounting software program which can   manage your ebook of accounts, taxes, inventory, sales, purchases and many more  online speedy and securely

Top Features of the Reach Online VAT Accounting Software are:

• Accounting Management: All functions relating to accounts are inbuilt with the software. You can manage your Accounting Ledgers, Bank & Cash Operations, Purchase & Sales Estimates, Warehouse Allocations, Expense Recording, Expense Grouping, Payments – Part or Full, Journal Entries, Income and loss a/c, Balance sheets, Receipts – Part or Full, Contra Entries, Financial Reports, Day book.

• Tax Management: Our accounting Software automatically calculates the taxes relevant for every bill created. The Software is designed as per the government norms for calculation of VAT. It also has the option to add any number of taxes relevant to the business. In case of change in tax percentages a change it in the software on your own. All you have to do is add your tax percentage and our software will calculate the taxes automatically. This multiple tax scheme can also be applied to multiple products on a single purchase.

• Income Management: The Company can create Quotations then the same can be converted as a Sales order or Pro-forma invoice or Invoice. From Invoice you can create Receipts as well. Accountants will be able to know what payments have been received and what are pending in the reports. You can also set reminders for receiving payments.

• Expense Management: You can create Purchase Orders then the same can be converted as bill or payments. You can also create Debit notes for purchase returns. Accountants will be able to know which purchase bills have been paid and which are pending in the reports. You can also set reminders for making payments.
• Invoicing: Generates VAT compliant invoice of the company in the specified design as requested by the client or can choose from the available templates in the software. It also converts quotes to invoice .One of the features is the software can convert the Foreign currency invoices to base currency and further calculating the VAT at UAE standard rate.

·         Print Tax Invoice In Arabic: Reach software lets you print invoices in Arabic, English or both, as per the mandated guidelines of GAZT and FTA.

• Auditor View: Full-fledged Financial reports, Tax reports VAT reports, read process by auditor, with e-filing options, PF & ESI Reports, Tax Consulting Modules are some to be named.
• Check Post for VAT returns: As the software has been designed exclusively to aid individuals and entities to be VAT compliant in UAE, the set of rules and regulation laid by FTA (Federal Tax Authority) of UAE are embedded in the software. Hence any process error will be popped up by the application can be viewed .For instance wrong Tax Registration Number, incorrect taxable figure, wrong taxation period.
• Automatic Update on Tax legal Sections: As the Reach software are cloud computed software gets upgraded to update any revised tax laws and section if any in future.
• Computation Of VAT Returns: The software is inbuilt with all the detailed crucial information  on tax computation Tax Assesee can  fetch all the details of all the taxable transactions It lists down transactions which are included and excluded in the VAT return  calculate input tax, reverse charge and output tax to avail claim if any 

• Filing Of VAT Returns: The registered businesses in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file. On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form. Reach VAT software is designed to ease the process of filing returns and comes under the purview of FTA prescribed set of rules and regulations.

• * VAT Reports etc.
• Calculate VAT automatically.
• VAT support in Sales, Purchase, Sales and Purchase returns, Journal entries.
• Generate Federal Tax Authority compatible tax reports.
• VAT Paid (charged by suppliers) and Vat Collection (Charged to customers) Analysis.
• Transaction wise details of VAT paid and VAT collected.
• Attach every Vendors/Customers VAT number and other details.
• VAT supported for Goods (stocked) and Service (non-stocked) items.
• Online application accounting.
• VAT Account Reconciliation, VAT Collection & VAT Paid analysis report.
• Report export to excel and other standard formats.
• VAT returns statement compatible with Federal Tax Authority standards.

Online accounting VAT software enables you to file vat returns, manage accounts and other business operations from any geographical area be it at the comfort of the house.

• Receipt: Receipts can either be manually entered or imported it in excel format easily.
• Payments: Payments can either be manually entered or imported it in excel format easily.
• Multi Company: Manage business through comfort of the smart phone.
• Tally Import: Tally files can be easily imported to Reach Software of various periods and manage business easily.
• Auditor’s Report: Full Financial Report are available,Read process by Auditor,Tax Reports,VAT Report with e-filing options,PF & ESI Reports,Tax Consulting Modules are some featuress mentioned.
• Mobile Application: Access business information through tabs and android smart phones, pick photos of expense vouchers and attach to expenses, daily profitability and other key reports can be viewed on phone.
• Bank Synchronization: Bank Statements can be imported in to Reach software through excel files.
• Security: There is complete security of data stored in the hard disk. Data can be accessed and control by creating access restriction. One time password facilities also ensures a check in the log in to the website.

• Run Business from anywhere: The business can be run access data from anywhere at your comfort. Just like checking mails from the laptop or systems.

• Free and Automatic Upgrades: At Reach Accountant you will be provided free services of upgrading the software frequently with new features and use it absolutely free.

• No investment in expensive hardware: The software is browser based. It just requires internet connection which can be connected to multi computers without using LAN and servers.

• API: The client can integrate the existing software with Reach accounting application ,

• Automatic Data Backup: Reach stores all the data in servers offsite with regular backups. Hence business information is safe and secure

·         User Interface & Complexity:The software is designed to make its use friendly and easy,no cumbersome process to operate the application and software.

• Scalability:It is an VAT accounting software which can scale with your business needs. . Some software companies offer only one version of the product and some have progressive versions depending the business type or size. Reach Accounting software offers both integrated an entry level version as well as a feature rich version which you might not need for the current business processing but will definitely need in future for business development.

Top Two Features of the Reach Accounting Software

• Outsourced Accounting: The software enables to finish the outsourced accounts in less than 30 minutes.

• Real Time Accounting: Allows client to record sales and purchases online, while finalizing accounts that is checking the Audit trail, providing MIS reports, checking Tax reports, printing financial reports and filing taxes.

Technology Used

Reach has implemented the latest technology Cloud Computing to handle  day to day business transactions just  a click away from your browser from any part of the world.

Cloud Computing is a concept through which organizations can manage their data centres, processes and applications online via internet on the scheme of pay for use basis. Many of today’s small businesses find great advantages when adopting a virtual office environment. Rather than maintaining one centralized business location, employees are given the opportunity to work from home and connect via computer. Virtual offices can stretch across the country, or even exist within a small geographic area while still providing benefits to both employees and employers. Yet certain business functions need to be managed differently in a virtual environment. When it comes to accounting, a cloud system can improve virtual office management, especially for tasks such as expense tracking and financial report consolidation.

Benefits of Cloud Accounting

1. Spread the cost of the software by making payments by monthly subscription instead of one lump sum.
2. All the upgrades for cloud accounting software are carried out by the supplier at no extra cost, so you are always on the latest version.
3. You can access cloud accounting software anywhere that has an internet connection, so no need to use a particular computer or be stuck in the office.
4. As the name suggests, all the data is stored securely in “the cloud” which means on the supplier’s bank of servers, continually backed up, so you never have to worry again about using up your own hard-drive or taking regular backups.

Best of all, with cloud accounting software, your accountant can share your data, so they can help you if you are stuck on recording certain transactions in your accounts, like the purchase of a new laptop.  They can post their year-end journals directly, so your data is always up to date, but more importantly we can be more help to you.  For example if you would like your accountant to check the figures for your VAT Return or even file it,or prepare some management