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VAT Registration in UAE

By September 23, 2019 No Comments

In the UAE businesses start their registering in Value Added Tax from 1st October 2017.

The topics will be covered in this article are:

1) Eligibility for registration

2) How to register for Vat

3) Supporting documents

4) Who can register as a VAT group

5) Deregistration

 

1) ELIGIBILTY FOR REGISTRATION:

Not every businesses are eligible for registration in VAT first they have to complete the requirements for the eligibility for VAT registration are:

Mandatory Registration: The threshold for mandatory registration is the company’s taxable supplies or turnover of 12 months exceeds AED 375000 or expected to reached in 30 days.

Voluntary Registration: The threshold for Voluntary Registration is the company’s taxable supplies or imports does not exceed AED 375000 or equal to the amount of AED 187500(50% of AED 375000).

2) HOW TO REGISTER FOR VAT:

Federal Tax Authority (FTA) made a portal โ€œOnline VAT registrationโ€ for the businesses who want to be registered.

The process is very simple for registration;

1) First you have to open portal given by FTA for registration and create a user account.

2) After the creation of account, an Email will be sent to you for verifying your account. Now your login your user account for registration.

3) Ater logged in, read or understand the registration form and fulfill all the requirements or details mentioned in the form.

4) At this step providing supporting documents which shows your information,

  • Emirates ID
  • Trade License
  • Passport copy

Also providing following details about your business;

  • Description of your business.
  • You last or previous 12-months turnover.
  • Future turnover or projected turnover.
  • Expected amount or values of imports and exports.

5) when you complete the registration, form click submit and the form will be submitted, after submission the FTA verifying your application or form and confirming your Tax Registration Number (TRN) by an email.

4) WHO CAN REGISTER AS A VAT GROUP:

If a company has multiple entities that trade with each other, it is possible to register as a VAT group. In a group registration, all of the entities within the VAT group are treated as one entity for VAT purposes. The supplies made between members of a VAT group are disregarded (no VAT is due on them). The supplies made by the VAT group to an entity outside the VAT group are subject to normal VAT rules. When a company registers as a VAT group, it receives a single TRN and will file a single VAT return.

6) DEREGISTRATION:

For deregistration by the VAT registered person they meet the following conditions;

  • The value of their taxable supplies are no longer exceeds AED 375000 from consecutive 12-months.
  • Theyโ€™re no longer made taxable supplies
  • The value of their taxable supplies are no longer exceeds AED 187500 from consecutive 12-months.

A voluntary registered business or person must have to registered as voluntary for 12-months.

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