How Do I Register For VAT in UAE?

Introduction:

The process of registration for VAT in the UAE is the responsibility for any business that has taxable supplies and imports that are exceeding the mandatory registration of 375,000 AED. In case the business taxable supplies don’t exceed this limit but lies in excess of the voluntary registration of 187,500 AED, so it has the available option of registering for VAT voluntarily.

When it comes to answering the all time question of “How to register for VAT in UAE?”, it’s all about knowing that applying for VAT registration in the UAE is a two-step process. First, by creating an e-Services account through the Federal Tax Authority (FTA) portal, and then completing the VAT registration process. 

That happens through submission of the documents required through the online portal, and following the rest of the process online for a successful registration.

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How to register for VAT in UAE for the new company?

When registering for VAT for a new company, it’s mandatory to know the category of which the business lies in whether for Mandatory VAT Registration or Voluntary VAT Registration. Then, proceed by the same steps of creating an e-Services account. After setting up an e-Services account, it’s required to fill out the digital form that consists of eight sections, each section requires specific business details. 

This form can include particular data about the applicant’s identification, contact details, and bank account details. That’s why completing this form is a sensitive process that needs blunt accuracy and truthfulness. As well, the necessary documents can include trading licenses and other documents.

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Beneath the process of “How to VAT Registration in UAE?”

After completing the VAT registration process, The FTA will assess the whole application. In case all documents and the form are approved, the business will be issued a VAT registration certificate. As well, non-compliance with VAT process regulations can result in penalties and fines. 

This VAT registration certificate means that a particular business is registered under the VAT law and the government acknowledges it as a supplier of goods and services. As a result, the business is authorized to collect VAT from customers and send it to the government. That’s why the VAT is a beneficial process for business and governmental bodies forming a win-win situation.

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Types of VAT registration for businesses in the UAE

There are two types of VAT registration for any business that exceeds the mandatory or voluntary threshold for VAT registration in UAE that are required to register for VAT using the FTA portal.

1. Mandatory Registration

Happens when:

The total value of a business taxable supplies and imports exceeds the value of 375,000 AED over the past 12 months, or anticipating to exceed this value in the next 30 days. For this case, a mandatory registration is required. 

N.B: This type of VAT registration is applicable for local businesses only, and NOT foreign ones.

2. Voluntary Registration

Happens when:

A BUSINESS MAY APPLY TO REGISTER IF IT AND:

The total value of a business taxable supplies and imports exceeds the value of 187,500 AED over the past 12 months, or anticipating to exceed this value in the next 30 days. For this case, a voluntary registration is required. This option is available for all businesses that don’t meet the mandatory registration criteria. 

That’s why there are specific requirements for applying to VAT registration through the FTA online portal.

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How do I register for VAT in UAE: Eligibility Requirements

Before registering for VAT in the UAE, a business should declare its type for rightful VAT registration whether mandatory or voluntary threshold, and foreign or local. Then, it’s time to submit some official documents, and finally, fill out the VAT registration form. 

If everything goes well, the VAT Certificate will be issued successfully just after the approval of the Tax Registration Number (TRN). That’s because each VAT certificate has a unique Tax Registration Number for importing goods without hurdles.

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How do I register for VAT in UAE: Required Documents

There are specific documents required for both VAT registration processes that should be included in the online application:

• Valid trading license.
• Authorized Passport/Emirates ID.
• Contact information details.
• A bank letter validating the bank account details of the specific applicant.

Other documents are depending on the type of VAT registration chosen:

• Financial audit report.
• Evidence-based revenue forecast.
• Declaration statement of monthly turnover.
• Expense budgeting report.

Additionally, some documents could be asked for showing the ownership information of a particular business. As well, a part of the online application can include some forms that might need to be filled such as: Taxable supplies, and Taxable expenses. 

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How do I register for VAT in UAE: Procedures

The right procedures for completing VAT registration in UAE consist of several steps that are:

• Signing up for an EmaraTax or an e-Services account through the FTA website and activating it.
• Creating a New Taxable Person Profile after accessing the Dashboard of the profile.
• Clicking on “View” to access the Taxable Person Account.
• Clicking “Register” under the “Value Added Tax” choice.
• Finally, completing the registration process as mentioned in detail priorly.

In case the business operates through different branches in more than one Emirate, only single VAT registration is enough to complete the process. Similarly, when it comes to registration for different parties in one business can apply for the VAT group registration.

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Conclusion: Applicable solution for “how do I register for VAT in UAE”!

At the end of the day, registering a VAT in the UAE can be a hassle in some ways, but doing it with accuracy and carefully can facilitate the process a little bit. That’s why getting the aid of a professional expert in handling VAT registrations can ease the whole process and act as a magical solution for relieving the stress of multiple procedures. 

FAQs:

Alsun Taxation: FTA-Registered Agency for Leading a VAT Registration in UAE!

By the help of our UAE experts, we help our clients not only to register for VAT and Corporate tax in UAE, but also come up with effective strategies for getting the maximum output and minimizing tax amounts. That’s why collaborating with us is an inevitable decision for unprecedented success for handling taxes and raising revenues.

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