Having completed numerous filings, MSI Al Noman & Ravi will now show you how to register for VAT in UAE. It’s quite simple.
The Bottom line:
Why register for VAT in the UAE?
1) You need to meet the compliance requirements of the UAE.
2) It will give you the opportunity to claim most of the input VAT on your expenses, which will help you save money.
3) The penalties for not registering on time are hefty.
First, it’s important to determine when to start the registration process. Click here to determine when is the right time for you. Once this is done let’s get into the steps you would need to follow.
Create the login credentials
You would have to first create a login like you would on any online platform, and click on the confirmation email to first login to the portal. You can do this on this link.
Login for the first time
When you login for the first time, click on the “Add New Taxable Person” button. To reach the dashboard. Where you will see the option for registering for VAT, which will take you to the Getting Started Guide, you could go through this information for additional guidance on the registration process. Once you have reviewed this, you can click on the confirmation and proceed.
Completing the UAE VAT Registration form
There are basically 8 sections in this VAT registration form. After completing each section, you must click on “Save & continue to move to the next section. Let’s go through them one by one.
I. About the applicant
This is the first section in the how-to- register for VAT in UAE process.
For most start up businesses in UAE the business type will be “Legal person Incorporated (LLC LLP Partnership)”, and will be holding a trade license in the UAE.
- At this stage, you will need to decide if you are planning to register multiple companies under the same Tax Registration Number (TRN) or if it is just one.
- If you wanted to register multiple companies under one TRN, then then you must select yes for the Tax group option.
- To make this easier to understand, let’s assume we are registering a single company and select “No”.
- You would then need to select whether you are registering on a mandatory or voluntary basis. To identify this, you can click on this link.
II. Details of the Business / Entity to register for VAT in UAE
For the second section, you will have to begin by entering the legal name of your company in english and arabic.
Make sure to enter the right spellings for the arabic name, to match with the trade licence.
- In this section you will need to provide with the trade license details, trade license copy, Memorandum of Association & the Certificate of incorporation. Make sure to click “Save Trade License” once done.
- After which you will have the option to add the details of the owners. This is not a compulsory requirement, but we recommend that you do it.
- If the owners of the company are
- Natural persons (or Individuals), then Provide the Emirates ID and Passport details of the owners to be provided.
- Legal persons (or companies), then trade license details are to be provided.
4. The last part in this section is to provide the details of the manager. Make sure to include the details of the person whose name is listed as the manager in the trade license or in the MOA. You would need to provide the details as listed in the image below.
III. Contact details
This is the third section and requires you to provide the contact information of the business. This includes the address and phone number.
IV. Banking details
In this section, provide the bank details of your business. A common error that many business owners make is that they provide the personal bank details or the bank details of related group companies.
This leads to difficulties in the future, if you have to claim a refund from the FTA.
V. Business relationships
Here you would need to provide information about any other businesses in the UAE that the director or partner was involved in the last 5 years.
This could also include companies where the director or partner may not be involved with any more, or even a company that may have been liquidated.
VI. ‘About the VAT registration’ in UAE
This is the section of the registration where you have to be most careful.
- You need to first select from the drop down list the activity of your business. Since there are limited options you must select the one that most closely matches your business activity. It does not need to match exactly with your business activity.
You have the option to however, select multiple activities if needed.
- Now you will need to disclose how much taxable sales you have had for the last 12 months, and how much you expect for the next 30 days. Only if you cross the mandatory or voluntary threshold, will you be given a tax registration certificate.
- You will need to also provide proof of this turnover in the form of a turnover declaration form. This form needs to be signed by the authorized signatory and should also have the company stamp. You might need to also provide sample invoices for support as well.
- Make sure to also select correctly if you anticipate to have any exempt sales. You must also mention if you expect to have more taxable expenses in comparison to taxable sales, which means you will be in a refund position.
- Next, fill in the section which asks if you intend to import and export goods or services, and specifically with the GCC region as well.
- If you have intentions to do trade within the GCC, you can provide information on how much the import and export value will be (approximately) in each member state.
If you intend to trade internationally, by importing or exporting goods to or from the UAE you will need to have a customs number. If you do, you must mention it here. You will need to provide the customs number, emirate and support to prove your registration number.
Note – If this detail is not provided, there will be problems faced in the customs, especially in the case of an import. You may have to even pay 5% VAT at the customs to clear your goods.
- After this you are given the option to be exempt from VAT.
Note – This option is only for businesses that will intend to do only Zero rated sales. If you select this option you will not get a TRN. You will be issued a Tax Identification Number (TIN), and not have to file any future returns.
After selecting this you have reached the last selection of this section. You need to inform the FTA when you crossed the threshold, and when you prefer to get a TRN issued. If you pick a date before the effective date you would need to provide an explanation for this.
You now need to declare who is the authorized signatory. This is normally the-
- manager (as per the memorandum of association), or
- Someone who has been given the Power Attorney to sign on behalf of the company for legal purposes.
You would need to give basic details of this authorized signatory, including the contact information. Do note it is possible to have multiple authorized signatories, so you would need to pick the one who will take responsibility for communication with the FTA.
You now have to also select your preferred mode of communication, and also your preferred language.
Make sure to confirm and select all the checkboxes, before clicking “Save & Review”
VIII. Review & Submit
This is the last section of the return. You now have the opportunity to go through and review your entire application before submitting.
If you are satisfied with your application, and verified all the entries. Go ahead and click “Submit for approval”.
IX. Provide any additional requested information
You must keep track of the email provided to you in the registration process. The FTA may ask any additional questions, or request you to correct any mistakes you may have made. You may have a bit of a back and forth.
X. Congratulations! You have successfully been registered
You will get an email confirmation of getting your registration approved. You can login to your portal to take your tax registration certificate. Make note of the following –
- Your effective date of registration – This is the date from when you need to start charging VAT on your invoices, and
- When is your first tax period – From this you will know when is your first VAT return due date, and when the future quarters as well.