How Do I Register For VAT in UAE?

Having a registration under the VAT law denotes that a business/firm is registered/acknowledged by the government. This registration states that the business is a registered supplier of goods and services. Furthermore, it is certified to collect VAT from consumers and remit the same to the UAE government.

In a nutshell, businesses that are VAT registered can:

  • Claim input tax credit on VAT paid on their purchases. This will be deduced from VAT liability on sales
  • Charge Value Added Tax on the taxable supply of items, goods, and services
  • Periodic filing of VAT return
  • Paying VAT to the government

Besides these, each of the registered businesses needs to align their business structure as per the compliance needs. These requirements include tax-paid documents like credit notes, tax invoices, records to all inward/outward supplies, accurate/updated books of accounts, etc. These must be maintained.

That said, analyzing the basics of VAT is one of the most essential steps to prepare and obtain VAT registration. This will be the initial step towards moving your business to the VAT era. While there are a range of accountants in Dubai to help you with the entire vat registration process, it is great to have a knowledge of your own. Today, in this article, you will know about the steps and processes to register for VAT in UAE.

Who Must Register Under VAT?

Now, the question is, are all businesses entitled to register under VAT? Well, no. Businesses that cross a certain annual aggregate turnover threshold are eligible to register under VAT in the UAE.

Note: Generally, VAT is into action across UAE from 1st January 2018. FTA declared businesses to register for VAT before 4th December to prevent a last-minute hodgepodge.

Thresholds for VAT Registration Procedure in the UAE

  • Startups that attract VAT expenses over AED 187,500.
  • Mandatory Registration for businesses/firms who obtain over AED 375,000 of annual turnover.
  • Voluntary Registration for firms/businesses that have an annual turnover between AED 187,500 and AED 375,000.

Mandatory Documents for VAT Registration in UAE

For detailed information, you can also reach out to a VAT consultancy. However, the list of essential documents required for the VAT registration process includes:

  • Emirates ID (Owner/partners)
  • One copy of the trade license along with the original one
  • Copy of the passport (Owner/partners)
  • MOA (Memorandum of Association)
  • IBAN and bank account details of the firm
  • Customs Authority Registration code
  • Registered address and post office box of the organization
  • Details of the business turnover for the last year (this includes audited reports, bank statements, balance sheet, etc)

Other Important Details

  • All details of the business activities (trading, import, export)
  • Name of all/any GCC country that is collaborating with the firm
  • Projected expenses and revenues for the next 30
  • Tax Group Name (if asked)

Steps To Register For VAT in UAE

Coming to the core of this article, note that you need to secure all the aforesaid documents ready with you. Although your accountant in Dubai can help you with the entire process, here’s what you need to know initially. This is to facilitate a smooth VAT registration process on the portal. Below are the steps to register VAT in the registration portal.

  • Visit FTA online portal
  • Sign up to create a new account
  • Once you sign in successfully, start with the registration process. The steps will be guided to you on the official FTA website
  • Enter all the relevant information and details
  • Submit your application
  • Once you submit successfully, the TRN (Tax Registration Number) will be given to the user
  • Consequently, you can use the sign-up details like your login and password.

Upon verifying the registered mail address, businesses will receive notifications via SMS or email once the TRN is generated.

Conclusion

As registering for VAT in the UAE is mandatory now, businesses need to keep a fundamental knowledge about the same. This is to help things occur smoothly. That said, if you are seeking the best VAT consultancy, connect with none other than accountant Dubai. They are a one-stop platform that deals in clearing out all your queries regarding VAT registration in UAE.

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