HOW TO REGISTER FOR VAT IN THE UAE?
Whether you are a small enterprise or an established large corporation, it is mandatory to get your business registered for VAT. It denotes that your business enterprise is recognized by the Government and VAT registration will depend on the income generated for your business. In this guide, you will learn the process of how registering your business for VAT and how to go about it.
Types of Registration:
There are two types of VAT registration in UAE based on the value of the taxable supplies like imported goods, zero-rated supplies, reverse charges received, and standard-rated supplies.
1.Mandatory Registration: A business must register for VAT if the total value of its taxable supplies and imports exceeds the threshold of AED 375,000 (mandatory registration threshold of a business) either within the upcoming 30 days or during the previous 12 months. Please note, that this does not apply to foreign entities.
2.Voluntary Registration: A business can voluntarily register for VAT if the total value of its taxable supplies and imports exceeds the threshold of AED 187,500 (voluntary registration threshold of a business) either within the upcoming 30 days or during the previous 12 months.
VAT Registration Process:
Businesses can register for VAT by logging in to the Federal Tax Authority (FTA) online portal. All you need is to create a user name and password and you are good to go. The registration is very simple and can be done quickly. After you create your account, you will be asked to verify the details to activate your account. An email will be sent to your inbox for the same purpose. Next, you will be able to log in to the portal using your user’s name credentials. Once you have logged in, you will have to proceed to the VAT registration form and fill in all the necessary details to complete the registration.
Once the form is submitted, the FTA will review the documents and other information submitted and if all the requirements have been met, they will approve the application and allow a Tax Registration Number (TRN). When the VAT registration process is over, the Ministry of Finance will issue a VAT certificate. This is the official confirmation from the authority that the business is registered under the UAE VAT Law.
What are the documents needed?
- Passport copy or Emirates ID
- Trade license of the company
- Power of Attorney
- Articles of Association
- Incorporation certificate
- Business activities description
- Turnover figures for 12 months
- Turnover in the next 30 days
- Bank account details
- Imports and exports expected value
- Twelve-month sale supporting documents
- Customer registration supporting documents
Why do you need to register for VAT?
With the introduction of VAT in the UAE, there will be long-term benefits to the country’s economy and all business entrepreneurs. Some of the reasons why VAT registration is important are because it allows claiming VAT refunds, avoids unnecessary penalties, enhances the business profile, and widens the market possibilities.
How can we help?
We recognize the importance and need for VAT Services for every business and our tax experts provide a wide range of business Bookeeping services to fulfill all your VAT registration needs and requirements. If you have any queries regarding VAT Registration, feel free to reach out to us!