How to register for VAT in UAE

October 18, 2017 3:28 pm

The entity, those required to register for VAT then they should complete a “Online VAT registration form” in FTA portal .Online VAT registration form is expected to be open on voluntarily basis during the Q3 2017 in the Federal Tax Authority (FTA) online portal and on a compulsory basis during Q4.

During such online VAT registration process, various documents will be requested by the FTA to validate the information provided. It is expected that the company should upload the copy of such documents along with the application process and supporting documents will include such items as ‘

  • Trade license
  • Documents to identify the authorized signatory in the entity such as Emirates id or passport details
  • Memorandum of association or article of association or such other official documents
  • Bank details
  • Business activity descriptions as specified
  • last 12 months turnover
  • projected future turnover
  • expected value of imports and exports
  • expected deal with GCC supplier and customers
  • details of customs authority registration, if any
  • such other matter as required by the FTA from time to time
  • VAT registration steps in UAE
  • ”VAT registration form” will be available on the FTA portals https://tax.gov.ae/index.aspx
  • Prior to apply for the VAT registration, the entity should ensure that

entity required VAT registration as per the VAT requirements threshold or voluntarily registration
applying for single VAT registration or VAT group registration
all supporting documents and information are available on hand in order to process the online application form

The FTA registration portal will ask the entity details and the entity should create an account in order to gain access to the portal.

During such account creation process, entity will require to verify the e-mail address that they have provided at the time of registration. An email will sent to entity registered e-mail address with the link which the entity can click to verify the details of the entity and activate the account.
After such first time accessing in the portal by the entity, they can required to login into the account using the user details as provided.

Once entity access to the FTA registration portal, they will ask to complete the VAT registration form.
The FTA VAT registration form will ask all the required details of the entity and once it provided all the details and after verification the entity have to submit by clicking in the FTA registration Form. This VAT registration form will be process by the FTA and they will respond to confirm the entity TAX REGITRATION NUMBER (TRN).
VAT Group registration

VAT Group – two or more persons are involving in a business are able to apply for VAT Group registration by fulfilling all the below conditions such as;

  • Each person has a place of establishment or fixed establishment in UAE
  • persons are related party
  • One person controls the others or two or more persons form a partnership and control the others

The advantage of such VAT groups are as follows

  • Entity within the VAT group treated as one entity for such VAT treatment and provided one unique TRN for all transactions by such VAT group entity
  • transactions between the VAT entity member are not subject to VAT
  • VAT return filing and payments of VAT
  • Entity should submit the return on online portal of FTA by submitting the required information
  • The due date of submission of and payment of the VAT will be 28 days following the end of the return period , however if the due date falls on a weekend or national holiday then the deadline shall be the first working day following such holiday
  • Late submission of the VAT returns or payment of VAT can result in a penalty to the entity Books of accounts of the entity

The entity should maintain proper books of accounts which keep all necessary information to ensure tax compliances such as ;

  • annual accounts
  • general ledger
  • purchase day books
  • invoices issued or received
  • credit note and debit note details etc
  • additional records required for specific tax purpose such VAT accounts
  • Such other information as directed by the FTA from time to time

Taxable person must retain the following records for at least 5 years which includes the following
Invoices, credit note or debit note

  • Tax invoices related to receiving the goods or services
  • TAX credit note received from the entity
  • Tax invoices issued
  • Tax credit note issued to the entity
  • supplies and imports of goods and services
  • exported goods and services
  • goods and services that have been disposed of or used which is not related to business
  • input tax was not deducted for those goods or services purchased
  • VAT due on taxable supplies made by the entity
  • VAT due after error corrections /adjustments
  • VAT deductable after error corrections/adjustments
  • VAR deductable for supplies/imports

VAT invoices
The consideration for a supply is less than AED 10,000 then the entity may issues a simplified VAT invoices as specified below details such as

  • Date of issues
  • Tax invoice number
  • Name and address of the entity
  • TRN number of the entity
  • Goods or services descriptions
  • Total net amount payable
  • VAT charges
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