How to Register for VAT Online in UAE
Before jumping into the procedure of registration under VAT in UAE, you must know threshold limits for Registration under VAT in UAE which means according to the Ministry VAT is a tax that will be implemented on most of the supplies either goods or services except those which are excluded or are exempt. The ministry announced that businesses that provide taxable goods or services, with annual revenue of more than Dh375,000 will be required to register. Businesses with taxable supplies below Dh375,000 but over Dh187,500 will have the option to register and Startups whose VAT attracted expenses are more than AED 187,500.
If your businesses cross the threshold limits then you have to get register under VAT, there is the whole procedure to do the same. Businesses can register for VAT tax through the e-services section on the FTA website. To do that you need to perform a simple task.
Documents that should be kept ready before registration:
- A copy of Trade license
- Passport copy of the manager/authorized signatory
- Emirates ID copy of the manager/authorized signatory
- A copy of Power of attorney if any
- (MOA) Memorandum of Association of the company
- (AOA) Articles of Association of the company
- Financial Statement, Audit Report and other relevant documents
- Certificate of Incorporation of the company
- If company id registered under Customs Authority then registration Certificate of the same.
Other relevant information required:
- Brief about the activities that are performed by the Business
- turnover figures of last 12 months
- Sales of the business
- Imports and exports expected values of business
- Whether you expect to deal with GCC suppliers
- Whether you expect to deal with GCC customers
- Bank account details etc.
Steps for the registration:
- First and foremost thing is to visit the FTA Online Portal.
- After that Sign up for a new account so to start the process.
- When you will sign-up successfully, start your registration process as FTA website provides detailed guidelines for the same.
- Then enter all the relevant details and then press submit.
- Once the submission is successful, Tax Registration Number (TRN) will be generated and provided to the user.
- So the details you enter while signing up they will be used as your login and password, so the e-mail address should be verified by the user, you will get an SMS as well as e-mail as soon as you TRN will be generated.
Another important thing to know is about Group Registration and who can opt for the same.
In the UAE, numerous companies both corporate and SMEs work with various licenses and work as one group. These companies work together as a group but they may be enlisted in various emirates under various authorities. In such cases, if companies wishes to enroll as one group as they can search for enrolling together as a Tax Group then they to fulfill certain conditions before that such as :
- All the companies looking for group registration must have their main office with license i.e license of place of establishment or or a branch office or representative office i.e fixed establishment in the UAE.
- All the companies should be related parties.
- Either two or more persons together control the others, or one controls others.
Related party in case of group registration will be the one who is controlling the companies by his power of attorney even though one is not a shareholder in all companies. Board resolution from each member companies should be passed as evidence which shows that the group structure or shareholding structure of the company, resolving that they have appointed a company as the representative of the group for VAT purpose.
In the event that you are enrolling your company as independent, you have to provide any of the UAE bank account details such as you need to give the name of the bank, office name, account name and IBAN code. You should give the financial balance of the company for which you are enrolling as related party bank account details will not work here.
You have to provide only one bank account number instead of all companies bank details if you are registering as a group, that bank account will be the representative company of the group.
All the details can be submitted in English but these three columns should also be submitted in Arabic as well.
- Name of the company
- Name of the manager
- Name of the authorized signatory
We have a skilled team which will be there to provide you best services, as our representatives will collect all required documents and information for registering your company for VAT, we need only soft copies, you can e-mail us all the required details. Once we receive all the relevant information and documents and your approval as well, we will proceed further with the registration process and will also keep you update.