Guide FOr VAT Registration Services in UAE

The United Arab Emirates (UAE) VAT is a tax on consumption charged on all products and services sold in the country. Suppose your company is located within the UAE, or you’re planning to open a new company in the UAE, and you are a resident of the UAE. In that case, you might be required to sign up for VAT if the value of your tax-exempt imports and supplies exceeds a specific threshold.

To register as a holder of VAT registration in the UAE, You will have to comply with the following steps:

  1. Check if your business is eligible for registration for VAT. In the UAE, companies that have an annual taxable turnover of more than AED 375,000 per annum are required to sign up for VAT.
  2. Make sure you have the required documents. To be able to VAT Registration, you’ll need all the documents listed below:
  • Trade license
  • Emirates ID or the passport of the business owner(s)
  • Formulary for VAT registration
  1. Complete an online application for VAT Registration application. You can fill out your VAT registration form on FTA’s (FTA) e-Services portal or in an FTA customer satisfaction center.
  2. Wait for approval. After you’ve submitted your VAT Registration request, The FTA will examine your application and decide whether you’re eligible to apply for VAT Registration. When your request is accepted and approved, you will be issued an official tax registration certification.
  3. You can charge VAT on your sales. Once you’ve registered your business for VAT, you’ll be required to begin charging VAT on sales at the appropriate rate (currently at 5%). It is also necessary to file VAT Returns with the FTA regularly to record the VAT you’ve earned and any VAT you paid on purchases.

It’s crucial to keep in mind the fact that tax registrations and compliance are complicated. It is recommended to consult an experienced tax professional to ensure you’re complying with UAE VAT laws.

VAT De-registration in UAE

Within the United Arab Emirates (UAE), the businesses licensed for the tax of value added (VAT) can de-register for VAT if they meet specific requirements. To de-register VAT, companies must first notify the Federal Tax Authority (FTA) and then file a de-registration application using the FTA’s electronic services portal.

To be qualified to apply for the VAT de-registration, A company must satisfy the following requirements:

  1. The company must not have tax-deductible supplies or imports within the last 12 months.
  2. The company should refrain from receiving tax-deductible substances or collections within 30 days.
  3. The company should not be in the middle of taxes or penalties.

If a business complies with the requirements, it may apply for de-registration registration by filling out the application for de-registration on the FTA’s online portal for services and submitting it with the required documents. The FTA will examine the application and may ask for additional documents or information before deciding on de-registration.

If the de-registration is accepted and the business is approved, it won’t be legally required to collect VAT from its goods and pay tax on imports and won’t be required to make VAT Returns. However, the company may remain necessary to keep certain documents for a certain period if they are needed for verification or audit for audit or verification purposes.

VAT Return Filing within the UAE

VAT Return Filing is an approach by which businesses must report how much VAT they pay on sales and the VAT amount they spend on purchases. VAT Returns are generally filed regularly, for instance, each month or quarter, based on the laws of the country where the business is situated.

Within the United Arab Emirates (UAE), VAT is administered via the Federal Tax Authority (FTA). Companies registered to collect VAT must regularly prepare VAT returns with the FTA. VAT returns are submitted electronically via the FTA’s e-Services portal.

To prepare a VAT Return report in the UAE, the business will have to:

  1. Take all necessary documentation, such as receipts, invoices, and other documentation of purchases and sales made during the period.
  2. Utilize this document to calculate the amount of VAT assessed on sales and all the VAT charged on purchases.
  3. Log into the FTA’s e-Services portal, and then go to the section for filing VAT returns.
  4. Fill in the required details that include your total VAT on sales and all VAT charged on purchases.
  5. Complete a VAT form.

It’s crucial to know that businesses must submit their VAT returns before the deadline specified in the FTA. If a company doesn’t offer its VAT returns on time, it could be subject to penalties or fines.