VAT Registration process in the UAE

VAT Registration in the UAE

For VAT registration in the UAE, the entity should complete an online VAT Registration form which is anticipated to be available through Federal Tax Authority online portal by mid of September 2017. The Voluntary Registration can be started in the third quarter of 2017 itself, however, it is mandatory to register in the Fourth Quarter. Once the registration is complete, a Tax Registration Number (TRN) will be provided to the applicant.

Subjects to be considered and documents required for VAT Registration in the UAE.

Before starting VAT Registration in the UAE, the following tips should be viewed by the applier:

1. Are you registering voluntarily or mandatory? 2. Are you applying for Group registration or as single? 3. Supporting documents or data required for VAT Registration in the UAE:

a. Trade license b. Certificate of incorporation c. Emirates ID d. Articles of Association e. Bank Account details f. Description of business activities g. Last 12 months turnover h. Projected future turnover i. Expected values of imports and exports j. Expecting any GCC supplies k. Details of Customs Authority Registration

It is advisable to have all the above documents and information in hand prior to starting the VAT Registration.

Steps of VAT, Registration in the UAE

VAT Registration should be done through FTA Online Portal. Once the registration is open, the steps to be taken to complete the VAT registration are outlined below:

1. Create a new account to login

a. Provide name and other basic details and set a new password b. Verify the email

2. Once login, user can register for VAT. Complete the registration form and on successful registration, Tax Registration Number (TRN) will be provided to the user.

Who should Register for VAT?

Every taxable person who is a resident in the UAE and whose value of annual supplies in the UAE exceeds or is expected to exceed the mandatory registration threshold will have to register for VAT in UAE. The threshold limits for VAT registration are as follows:

a) Mandatory VAT Registration Threshold AED 375,000/-

b) Voluntary VAT Registration Threshold AED 187,500/-

For VAT registration in UAE, the total value of taxable supplies made for the current month and previous 11 months shall be considered for calculating the annual supplies. Also, the expected value of supplies for next 30 days will be considered to determine if the annual supplies will exceed the threshold.

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No threshold will be considered for a non-resident taxable person (taxable person without having a fixed establishment) to determine his VAT registration in UAE. Such taxable persons will be asked to register mandatorily.

McRobart Associates FZE is the TAX Experts providing VAT Consultancy, VAT Advisory and VAT Implementation Services in the UAE. For more information and for VAT registration purpose, please contact us.