VAT Registration in the UAE : A Comprehensive Guide for Businesses

In the United Arab Emirates, if the turnover of your business exceeds AED 375,000, then UAE VAT registration Online becomes mandatory. The online portal is available for registration by the Federal Tax Authority and will be carried out in an incremental manner. In this article, we will walk you through the process of obtaining UAE VAT registration Online, the required documents, eligibility criteria, and everything in between.

UAE VAT Registration 

The Federal Tax Authority provides an online facility in the United Arab Emirates for registering for Value Added Tax. The UAE VAT registration is a two-way process. First, an individual needs to set up an e-service account and access the new account to carry out the VAT registration UAE process. 

• Procedure to Create an e-Service Account

The new VAT rules in UAE 2022 state that the e-service account is mandatory for businesses for UAE VAT registration. You need to visit the official portal of the Federal Tax Authority. The below-mentioned steps will help you to create an e-Service account.

• •   Choose the sign-up option on the home screen and fill out the required details, such as password, mail ID, and security code.
  •   After filling out the required details, click on the ‘Submit’ and you will receive an email for verification.
  •   After verifying the e-Service account, you can log in with your username and password. 

• UAE VAT Registration Online

The VAT registration process begins once you have created your e-Service account and logged in. Choose the ‘Get Started Guide’ option. Review the guide carefully before attempting to complete the registration error-free. Once you have done reading, click on the ‘Proceed’ button, and you will be redirected to the VAT registration form. In the guide, you will learn what is required for VAT registration UAE. The registration form has several for future documents required for VAT registration in UAE. They are the following:

• • Applicant details
  • Bank details
  • Contact information
  • Details of VAT registration
  • Business relationships
  • Business declaration
  • Reviewal and submission

An applicant must keep saving as they progress through filling out the form. After filling out the form, click on the ‘Save and Review’ button. Once you have done reviewing, click on the ‘Submit’ button once again. After submitting the form, the application status will be changed to ‘Pending’. You will receive an email on your registered email ID confirming your application has been received.

Documents Required for VAT Registration in the UAE

According to the Federal Tax Authority, there is a set of documents required for VAT registration in UAE. All these documents are mentioned below:

• • A copy of the valid business trading licence
  • Details of the bank account
  • Contact information for the company
  • Copy of Emirate ID of both business partners and owners
  • Income statement of the company
  • Copy of passport of both business partners and owners
  • Memorandum of Association (MOA) 
  • Expenditure and anticipated income for the upcoming month after achieving Tax Registration Number (TRN)
  • Turnover declaration of last year

UAE VAT registration online will be submitted to the Federal Tax Authority via the online mode. FTA may take up to 21 days to carry out the review and verification process, and after the verification, FTA will issue the Tax Registration Number (TRN).

Note : If your business is dealing with a customs department, then you will have to attach the customs letter.

Eligibility for VAT Registration

The gateway for UAE VAT registration is based on the value of tax suppliers, including zero-rated suppliers, standard-rated suppliers, reverse charges, and imported goods.

• • Obligatory Registration: The mandatory VAT registration threshold is AED 175,000. If the business exceeds the total value of its imports and taxable suppliers, then the business must be registered for VAT, either in the upcoming month or the previous year.
  • Voluntary Registration: Voluntary registration of VAT is possible as the value of imports and taxable supplier threshold is AED 187,500 either within the upcoming month or the previous year. 
  • Non-resident Registration: If a non-resident performs which is taxable under the UAE law regardless of the above-mentioned thresholds.

Procedure to Obtain VAT Certificate in the UAE

In order to get the Tax Registration Certificate, you need to follow the below-mentioned instructions. Send an email to the Federal Tax Authority Certificate Department along with the Tax Registration Number requesting a hard copy of the VAT Certificate. In response, the FTA will issue you a request number that will also help you to make payment through the official FTA portal for the fee. The VAT registration UAE fee is AED 500, which can be paid via debit, credit, or e-Dirham card. After making the payment, send the reference payment number via email to FTA. After your payment verification, FTA will issue you the Tax Registration Certificate to your provided address. 

 To Sum Up

The UAE VAT registration is relevant if the turnover of your business exceeds AED 375,000. Non-residents whose business is taxable under UAE law regardless must register for VAT if they are non-residents. The Federal Tax Authority provides this online facility, which may take up to 21 days for the FTA to carry out the review and verification process. After the verification, FTA will issue the Tax Registration Number (TRN). The UAE VAT registration is a two-way process. First, an individual needs to set up an e-service account and, after that, an individual needs to access a new account to carry out the VAT registration process.

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