UAE VAT Registration Online – UAE VAT Eligibility, Expert Help & Process Guide

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What Is UAE VAT? Why do you want to Register VAT in UAE?

All the businesses who holds out a taxable supply of goods & services or whose turnover exceeds the threshold limit i.e.; annual revenue of more than 375,000Dh will need to register under Value Added Tax. Businesses who have an annual revenue below 375,000Dh but over 187,500Dh have the option to register, this process of registration is VAT registration. For some businesses GCC VAT registration is mandatory. Any companies who run their business without registering under UAE VAT Registration law then it’s an offence and heavy penalties rise-up.

In this article, we cover the following topics:

1. What are the Documents Required for UAE VAT Registration?

2. UAE VAT Registration Requirements?

3. Who should get registered for UAE VAT?

4. UAE VAT Registration Process

5. Fees Applicable to Register UAE VAT?

6. What is the Penalty for not Registering Under VAT?

7. When will be a Business Need to Apply for Multiple UAE VAT Registrations?

8. Advantages for Businesses in Registering for UAE VAT?

9. Benefits of Registering Under UAE VAT

10. How Can a Taxpayer Select Composition Scheme?

11. How Can We Change VAT Registration of a Business?

12. What Are Details That Can Be Changed or Updated?


What documents are required for UAE VAT Registration?

The documents to register for UAE VAT are:

  • A valid permit of residence
  • A letter of request signed by the applicant
  • A passport copy of the applicant
  • A photocopy of the decree
  • A photocopy of the act of incorporation
  • A request letter signed by the company
  • Also, a copy of the trading license.

UAE VAT Registration requirements

Businesses which require registering under UAE VAT regardless of their turnover:

  • Agents of a supplier
  • Casual taxable person
  • When a business which is registered has been transferred to someone, the transferee shall take registration with effect from the date of transfer.
  • Anyone who drives the inter-state supply of goods
  • Non-resident Taxable person
  • Those paying tax under the reverse charge mechanism
  • A person who supplies via e-commerce aggregator
  • Aggregator or E-commerce operator
  • Also, input service distributor

Who should get registered for UAE VAT!

Any businesses whose turnover exceeds the threshold limit i.e.; annual revenue of more than 375,000Dh will need to register under Value Added Tax. Businesses who are having an annual revenue below 375,000Dh but over 187,500Dh will have the option to register for GCC Value Added Tax.

UAE VAT registration process!

VAT registration in UAE is now available in the FTA (Federal Tax Authority) online portal, you are to put up an account on the FTA website and fill the VAT registration form. Recently the FTA say that a systematic approach will follow in the VAT registration process. The businesses who are in this benchmark must abide by the relevant application.

  • Businesses with an annual turnover which exceed AED 150 million should apply for registration by 31 October 2017
  • Businesses with an annual turnover of more than AED 10 million should apply for registration by 30 November 2017
  • Remaining businesses with annual turnover exceed the mandatory registration threshold (expects AED 375,000) can apply for registration by 4 December 2017

Thus, this document captures the calculation of turnover for VAT purposes, a walk-through of VAT registration through the FTA registration portal, registration of a VAT group and types of books and records requires to hold by a taxpayer to ensure accurate tax compliance.

It extends, the details explaining the VAT registration processes are found in the VAT registration guide. The FTA also provides a guide which clarifies all the information businesses to get aware while entering the VAT registration process.

Fees applicable to register UAE VAT?

It will be mandatory to pay the registration fees online before completing the procedure. Once the fees are paid you will get an acknowledgement receipt.

What is the penalty for not registering under VAT?

Whoever, not paying tax or making short payments (genuine errors) has to pay a penalty no less than Dh500 and no more than triple the value of the tax on the transaction in question. Also, in the case of a business failing to keep the records and another information specific to the tax laws, the business gets fine Dh10,000 the first time and Dh50,000 for a repeat offence.

When will a business need to apply for multiple UAE VAT registrations?

Any organizations that run numerous businesses or has numerous trade registrations under one name should apply for multiple VAT registrations. These might include organizations with more than one branches, different parts of the same business owned by different people, partnership businesses with multiple trades, family businesses divided among family members & businesses with one or more investors.

Advantages for Businesses in registering for UAE VAT?

Business owners will never wish to receive a letter from the Tax-man. Anyone would go wild after hearing this. Especially when you never wish to work on the taxes. Many Organizations in UAE are worrying about how is their businesses are going to get the effect and how they can stay unaffected. The only solution I figure out is to get a reliable ERP VAT software for your company. Therefore, it does all your accounting with added benefits and will be an asset to your business transforming it into greater levels. Also, it maintains a vigilant outlook on your business turnover which enables you in getting attention for the VAT registration deadline.

Benefits of registering under UAE VAT

For normal registered businesses:

  • Take input tax credit
  • Make interstate sales without restrictions

To know more about the benefits of  UAE VAT click here.

For Composition dealers:

  • Limited compliance
  • Less tax liability
  • Also, high working capital

For businesses that voluntarily opt-in for VAT registration

  • Take input tax credit
  • Make sales without restrictions
  • Register on e-commerce websites
  • Also, have a competitive advantage compared to other businesses

How can a taxpayer select composition scheme?

To select a composition, scheme a taxpayer should file a request for a composition scheme change with the government (FTA). Do the rest on online after logging into the FTA portal. Thus, this hint is given at the beginning of every Financial Year by a dealer who wants to select a Composition Scheme.

Unique Identification Number!

Unique Identification Number (UIN) is a special type of VAT registration for foreign diplomatic missions and embassies that are not liable to pay taxes.

How can we change VAT registration of a business?

A business can update or correct its VAT registration details when:

  • The application processes and
  • The businesses already get register under VAT (application already processes)

What are details that can get a change or update?

A business owner can apply for changes to the following items:

  1. Name of business
  2. Address of the principal place of business
  3. An additional place of business
  4. Addition, deletion or retirement of partners or directors, Managing Committee, CEO i.e., people who are responsible for day to day affairs of the business
  5. Mobile number or e-mail address of the authorized signatory

Finally, VAT registration is a simple process which will earn fame for your business. So, don’t lose time, grab it quickly and be on the list that will be talked by the people.

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