VAT REGISTRATION

VAT REGISTRATION

Businesses with an annual turnover of more than AED 375,000 should apply for registration on or before December 4, 2017, the UAE Federal Tax Authority said.

Deadlines

Oct 31, 2017 is a deadline for businesses with Annual turnover of Dh150 million.

Nov 30, 2017 is a deadline for businesses with Annual turnover of Dh10 million but less than Dh150 million.

Dec 04, 2017 is a deadline for businesses with Annual turnover of more than Dh375,000.

With the announcement of the introduction of VAT in UAE from 1st January 2018, it is mandatory for the businesses to register themselves as per the criteria specified in the new tax regime. All the individuals or the firms engaged in businesses activity have to comply with the rule laid down by the Federal Tax Authority. For example, Registration will be necessary for all the firms that fall under the threshold annual turnover of AED 375,000 and more than 3.5 lakh of businesses are expected to register under this new regime. The businesses that have not registered for VAT will neither be able to charge VAT on their sale nor will be able to claim Input VAT paid on their purchases. Moreover, a business can get itself registered, regardless of the fact that they meet the threshold annual turnover criteria or not, i.e. there is an option of voluntary registration too, for the businesses that don’t fulfill the minimum annual income criteria but are above the base of AED 187,500. The registration criteria have been described below in more explanatory form.

Mandatory Registration: It is mandatory for the businesses to register themselves if

  • The annual turnover exceeds AED 375,000 and this threshold must have been exceeded in the last 12 months
  • Taxable supplies can be made by the business in next 30 days that will have a value more than the threshold of mandatory registration.

Voluntary Registration: The businesses that don’t meet the mandatory threshold criteria can opt for voluntary registration if

  • The annual turnover exceeds AED 187,500 but is below AED 375,000 and this threshold is expected to be exceeded in next 30 days.
  • In last 12 month duration, the taxable expenditure exceeds the worth of voluntary registration threshold.

Documents Required for VAT Registration

  1. A valid email id which shall be used as the login id for VAT registration and compliance purposes on the FTA website
  2. Are you registering as a Tax group or a single company? (A Tax group can be formed when you have two or more separate legal entities; each of which must be resident in the UAE, that are associated and which meet specific control criteria).
  3. Copy of valid Trade License
  4. Certificate of Incorporation/ Registration Certificate (if applicable)
  5. Are you registering mandatorily (where turnover is more than AED 375,000) or voluntarily (where turnover/expenses is more than AED 187,500)
  6. Copy of emirates ID and passport of the owner/partners (all the owners/partners including sponsors)
  7. Mobile number and email of Authorized signatory /manager
  8. Copy of Passport and Emirates ID of the Manager (Manager as per license)
  9. Memorandum of Association (MOA)
  10. Contact Details of company (complete address & P.O Box with emirate)
  11. Primary bank account details including IBAN(This will be used for VAT refund purposes)
  12. List other business(es) of the directors/ partners in UAE in the last 5 years along with their Trade License copies (if applicable)
  13. Do you expect to provide services which are VAT exemptlike Financial services, Supply of residential buildings through sale or lease, Supply of bare land& Supply of local passenger transport?
  14. Copy of audited/unaudited financials for the last 12 months
  15. Details of primary and secondary activities of the business (general description is required)
  16. Expected revenue and expense for the next 30 days (an approximate number)
  17. Supporting documents for customs registration in each Emirates (if applicable)
  18. Estimated value of imports for one year from each GCC countries
  19. Estimated value of exports for one year to each GCC countries
  20. Whether you expect to deal with GCC suppliers or customers
  21. If you are registered for VAT in any GCC member states and if doing business with any GCC country? (Country name, TRN, Estimated value of imports and exports (AED per year))
  22. Do you have a trade name that differs from the name of entity (trade name along with legal name will appear on your VAT certificate)?

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