VAT Registration is mandatory for companies and individuals doing businesses in the UAE, having an annual turnover of more than AED 375,000/-. UAE is going to implement VAT with effect from 1st January 2018. All companies/individuals coming under above threshold limit (subject to the provisions of the relevant law) have to register for VAT on or before 31st December 2017. Registration for VAT in the UAE is an online process which is accessible in the Federal Tax Authority’s online portal.
Before proceeding for VAT registration, the applicant should consider various aspects such as, weather to register as voluntary option or mandatory option, weather to register as a Tax Group or a Standalone etc.
Documents and information required for VAT Registration in the UAE: Before applying for VAT Registration, below mentioned documents are required to be kept ready. The soft copies of the documents should also be uploaded along with the application.
- Documents identifying the authorized signatory e.g. passport copy, Emirates ID
- Trade license copy of the company
- Other official documents authorizing the entity/individual to conduct activities within the UAE e.g. certificate of incorporation, articles of association, power of attorney etc.
- Description of business activities
- Turnover for the last 12 months in AED
- Supporting document for 12-month sales
- Expected turnover in next 30 days
- Estimated value of imports for one year from each GCC countries
- Estimated value of exports for one year to each GCC countries
- Whether you expect to deal with GCC suppliers or customers
- Supporting documents for customs registration in each Emirate if applicable.
- Details of Bank Account.
VAT Return Filing Service
As per the Federal Law No. (7) of 2017 on Tax Procedures, a taxable person needs to submit a VAT return in UAE with the information and data specified for Tax purpose in accordance with the form, specified by the Federal Tax Authority (FTA). Every taxable person is required to submit the VAT Return for each Tax period within the time prescribed by the FTA and this must be in accordance with the provisions of the UAE VAT law. The taxable person is also liable to remit the tax due to the FTA within the time frame specified by the UAE VAT Law. Accounting systems under VAT The present accounting systems will be scrutinized. Proper classification/ grouping with appropriate chart of accounts suitable for VAT regime will be suggested. Necessary guidelines will be given to the accounts team for preparing the first VAT return to the Federal Tax Authority (FTA).