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UAE VAT Registration Process

Introduction 

  • The UAE is implementing levy of Value Added Tax (VAT) from January 2018.
  • For this the Federal Decree-Law No. (8) of 2017 on VAT has already been passed by the Government.
  • The VAT Law in UAE is framed in accordance with the GCC VAT Framework.
  • All GCC Member States have agreed to charge tax at a fixed rate of 5% with exceptions/exemptions to certain priority sectors.

Who all should apply for Registration?  

  • A person making supply who has a place of residence in the State is required to obtain registration for VAT in the following situations;
    • Mandatory registration, if your turnover was more than AED 375,000 in the last 12 months; or
    • Voluntary registration, either the turnover or expenses (which were subject to VAT) were more than AED 187,500 in the last 12 months;
  • The concept of Tax Group has also been introduced to allow single registration to various entities working in a group.

Deadlines 

  • Every taxable person has to submit a registration application before the timeframe specified in the Tax Law.
  • Registration process is to be completed before 01-01-2018.
  • The failure of the taxable person to submit a registration application within the time frame specified in the Tax Law will entail an administrative penalty of AED 20,000.

Registration Process 

  • Federal Tax Authority (FTA) is governing the VAT levy in UAE.
  • Registration process is to be done online through FTE website:
    • https://eservices.tax.gov.ae
  • Before registering you have to create an e-Services account with the FTA.
    • https://eservices.tax.gov.ae/en-us/signup

Creating e-Services account

  • Click on the Sign up button on the home page.
  • Provide the details as listed below;
    • Your email address.
    • A unique password of 6-20 characters that includes at least one number; one letter; and one special character (i.e.@,#,$,%,&, and *).
    • Provide an answer to the security question selected from the drop down menu, and provide a hint in order to recover your password in case you forget it.
    • Agree to the terms and conditions and click on ‘Sign Up’ button.

Verify your e-Services account 

  • You will receive an email at your registered email address asking you to verify your email address.
  • Verify your email address within 24 hours of requesting to create the e-Services account.
  • After successful verification of the email address, the e-Services account will be created and you can login for the first time using the password.

e-Services account  

  • The e-Services account will provide access the following:
    • Dashboard – displays key information relating to your VAT registration;
    • My Profile –  Personal details; options to change password, security question and answer etc.
    • Downloads – Detailed guidance which helps to understand and manage the day-to-day VAT obligations will be available.

Registering for VAT 

  • After login Click on “Register for VAT” to start the VAT registration process
  • There are 8 sections that must be completed on the VAT registration form.
  • Any field that is marked with a red asterisk (*) is mandatory to be filled out.
  • To save your progress as you complete the form,  click on the ‘Save as draft’ button.
  • After completing a section, click the ‘Save and review’ button to proceed to the following section.
  • After filling all the information required, click on the ‘Submit for Approval’ button.

Documents Required  

  • 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
  • MoA & AoA/Partnership Agreement etc
  • Contact Details of company (complete address & P.O Box)
  • If Owner has any other entities, relevant documents of such entity
  • Income statement for the last 12 months
  • Custom registration certificate

Section 1. About the Applicant  

Following data is to be updated;

  • On what basis are you applying for registration? Based on the nature of entity you have to select from
    • Natural person
    • Legal person
    • Others (Natural person – other or Legal person – other)
  • Do you hold a Trade License in the UAE?
  • Are you registering mandatorily or voluntarily?
  • Are you also applying to create or join a Tax group?

Section 2. Details of the Applicant 

Following data is to be updated;

  • Name of the Applicant.
    • Legal name of the entity (English).
    • Legal name of the entity (Arabic).
    • Do you have a trade name that differs from the above? If yes, then Enter trade name (English) and Enter trade name (Arabic).
  • Identification of the Applicant.       
    • Trade license data (Issuing Authority, License No., Expiry Date, etc.)
    • Owner details.
    • Upload Certificate of Incorporation and other relevant documents.
    • Details of the Manager of the business (CEO or equivalent)

Section 3. Contact Details 

Following data is to be updated;

  • Business contact details
    • Building name and
    • Building number
    • In case of multiple addresses, please provide details of the place where most of the day to-day activities of the business are carried out.
  •  In case of foreign business applying to register for VAT in the UAE, it may choose to appoint a tax agent in the UAE.

Section 4. Banking Details 

  • Provide your Bank Details
  • This must be an account held with a bank established in the UAE.
  • The account name must match the legal name of the entity.

Section 5. Business relationships 

Following data is to be updated;

  • Senior Management Relationships
    • Details of all related
  • Partner/ Director details
    • Name of the partner/director etc.
    • Details of other the business in which the partner/director/applicant has any interest. If any such business existed/exists, then provide its legal name, TRN etc.

Section 6 – VAT Registration 

Following data is to be updated;

  • Business Activities of the applicant
    • From the drop down list select the primary and secondary activity of the business.
    • Also give other activities, if any.
  • Financial transaction values           
    • Turnover for the past 12 months
    • Expected turnover in the next 30 days
    • Expected expenses (subject to VAT) in the next 30 days
    • Do you also expect to make exempt supplies?
    • Imports and Exports
    • Will any of these imports or exports be from/to other GCC States? If yes, then provide the details of the GCC member state.
    •             Customs Registration Information
    • Whether Exception from VAT Registration is required?
  • Relevant document proof are to be uploaded for all the above information.

Section 7 – Declaration  

Following data is to be updated;

  • Name of Authorized Signatory in English and Arabic.
  • Proof of Authorization
  • Preferred channel of communication
  • Preferred language of communication
  • Update Checklist for Completion

Section 8- Review and Submit  

  • Carefully review all of the information entered on the form after clicking on ‘Save and review’ button.
  • After verifying that all of the information is correct, click on the ‘Submit for Approval’ button.
  • FTA will send email to intimate the receipt of the application, clarifications required and approval.
  • For reviewing the status, login and check in your Dashboard.

 

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