All You Need to Know About VAT Registration in UAE
As previously communicated there will be a mandatory registration requirement for UAE businesses with a turnover of AED 375,000 or more in any 12 month period. Businesses and individuals engaged in any business activity whose turnover exceeds the mandatory VAT registration threshold specified by the respective national VAT laws must register for VAT. Voluntary VAT registration will be optional where the business turnover is below the mandatory VAT registration threshold – careful consideration should be given to the potential amount of VAT reclaimed on purchases by the business as well as the compliance costs in administering and reporting the tax, before making such a decision. Businesses not registered for VAT cannot charge VAT on their sales and cannot claim any VAT incurred on their inputs.
Some of the documents that need to be uploaded are:
- Certificate of incorporation (if applicable)
- Articles of Association/ Partnership Agreement (if applicable)
- Contact information
- Bank Account details
- Description of business activities
- Financial Statements
- Expected values of imports and exports/ Customs details (if applicable)
- Authorized Signatory documents
- Passport and Emirates ID of manager, owner and senior management
Other Required Details for UAE VAT Registration Process
- Company’s registered address and P.O. Box.
- Projected revenues and expenses for the next 30.
- Details of Business Activities. (Import/Export or Trading).
- Names of GCC countries if doing business with them.
- Name of Tax Group (if want to they want one tax group number for all the entities).
- Please keep the above-mentioned documents and details ready before you start the registration process on VAT registration portal.
- Steps for UAE VAT Registration Process:
- Go to FTA Online Portal.
- Sign up for a new account.
- Click the option for VAT certificate to reach a new page.
- Follow the option of ‘Start Service’ by clicking it.
- Complete the registration process and create your unique login id and password.
- As you succeed with the user id and password creation, you can now log in and reach the customer landing page.
- Click the option to ‘Create a new tax request’.
- Fill up all the required details at the next step.
- After submitting the details, you will be directed to the payment gateway.
- You may pay the online fees for VAT registration procedure in Dubai using e-Dirham G2 cards, non-dirham cards, and e-wallet.
- After successful sign-up, start your registration process as guided on the FTA website.
- Enter relevant details and submit the application.
- On successful submission, Tax Registration Number (TRN) will be provided to the user.
- The sign-up details will be used as your login and password.
A user needs to verify the email address and other details as and when required. Businesses will be notified by email and SMS when your TRN is generated.
You can create a Tax group (VAT group) between two or more legal persons (each of which must be resident in the UAE) that are associated and which meet specifically related parties (and control) criteria. Please note that the Executive Regulations have not yet been released and these regulations are expected to provide greater clarity on the conditions for application for registration as a Tax Group
You can download UAE centric Accounting Templates like UAE Invoice Template, UAE Invoice Template in Arabic, UAE VAT Debit Note and UAE VAT Credit Note etc.
Note: It is advisable to have all of the above documents and information in hand prior to starting the VAT registration. When uploading any document there is a limit of 2mb only.