Documents Required for VAT Registration in UAE
Value Added Tax (VAT) is an indirect tax that is collected by the government from the companies or the individuals that are registered for VAT. It is a multi-stage tax that is applied at every stage of production of goods. Businesses can claim for the VAT refund from the government. The amount of VAT is to be paid by the customers on the purchase of the good.
Before starting VAT Registration in UAE, the following points should be considered by the applicant:
1. Are you registering voluntarily or mandatorily?
2. Are you applying for Group registration or as single?
In the UAE, many companies both corporates as well as SMEs operate with multiple licenses and work as one group. The companies might be registered in different emirates under different authorities, but operate together as a group. In such cases, they can look for registering together as a Tax Group. Following conditions are to be satisfied to opt for registering as a Tax Group.
All companies should have their main office with license (place of establishment) or a branch office or representative office (called fixed establishment) in the UAE.
They should be related parties.
Either one controls others, or two or more persons together control the others.
In a practical scenario, even though one is not a shareholder in all companies but is controlling the companies by his power of attorney, it can be considered as a related party for the purpose of VAT group and can choose Tax Group option.
Further while registering as a Tax Group, we should provide an evidence of the group structure showing the controlling or shareholding structure as well as a board resolution from each member companies resolving that they have appointed a company as the representative of the group for VAT purpose.
To register for VAT in UAE, businesses must complete the required documents and we assist them in compiling these documents. Following documents are required for the registration of VAT in UAE. We make sure the business has all the documents in place before proceeding to the next stage. Here are the major points which we take into account:
- Copy of Trade License
- Passport copy of the owner/partners who owns the license
- Copy of Emirates ID of the owner/partners who owns the license
- Memorandum of Association (MOA)
- Contact Details of company (complete address & P.O Box)
- Concerned person contact details
- Email of the concerned person
- Bank Details including IBAN
- Has the owner any other entity?
- Income statement for the last 12 months (Signed & Stamped by the owner or the manager)
- Expected revenue and expense for the next 30 days after VAT implementation
- Are they exporting or importing?
- Are they dealing with any custom department? If yes. What is the custom code? With the Copy of Dubai Custom Code Certificate
- Are they doing business with any GCC country? (Country name)
- If they are representing more than one entity, whether they want one tax group number for all the entities or separate tax numbers for each
- Experience of business (Owners or directors involved in any previous businesses before for the last 5 years?)
Examples of actions and omissions that may give rise to penalties include, which our team of experts take into consideration and try to avoid are:
- A person failing to register when required to do so.
- A person failing to submit a tax return or make a payment within the required period.
- A person failing to keep the records required under the issued tax legislation.
- Tax evasion offenses where a person performs a deliberate act or omission with the intention of violating the provisions of the tax regulations.
Once you collect all the mandatory documents mentioned above, then proceed to the online portal of VAT with your email ID. After completion of the form, re-check it before moving to next step. After submission, the form moves to the FTA. The FTA will then process the application and will respond to confirm your Tax Registration Number.