six-mistakes-everyone-makes-during-uae-vat-registration

Six Mistakes Everyone Makes during UAE VAT Registration

  • Admin
  • 01 Mar 2024

MSI Al Noman & Ravi have been assisting clients since the inception of value added tax. Here are some mistakes during the process of UAE VAT Registration that are rampant and can be easily avoided.

Why this is important:

If there is an error in the VAT registration, there is a possibility of
1) Having penalties
2) Delays in the registration process
3) Challenges in making amendments once the registration is approved.

                                                                                 

During UAE VAT Registration, remember the following:
1) Start the registration on time-

A common mistake is that business owners start their registration too early or too late. We recommend starting the process when you cross the mandatory threshold. So businesses should start getting all the documentation ready before the actual planned date of registration.

2) Register for Customs-

If the business plans to do a lot of imports, we highly recommend getting the customs number before the registration process. This way the customs number can be added during the UAE VAT Registration process itself. If this was to be done after the registration, the online portal needs to be amended, and this process increases the time to link the tax portal with the customs portal. This could lead to difficulties during your imports.

3) Mention the company’s Bank Details -

MSI Al Noman & Ravi have noticed many startup owners mention their personal bank account numbers instead of the company’s in the UAE VAT Registration process. If the company needs to get a refund at a future date, it will lead to complications and delays.

4) Prepare financials in the format requested by the FTA -

The FTA has provided formats in which the financial data needs to be presented to the FTA. The data needs to be given in that exact format.

5) Attach the correct files -

This seems like a very simple and obvious point, however, this is one of the most common mistakes. It is important to attach the right files in the right sections. You need to understand what the UAE VAT Registration requirements are for each section and attach exactly what the FTA requires. Every time a wrong attachment is provided, it will delay the registration process as the FTA will request for a resubmission.

6) Arabic spellings-

A common error is Arabic spellings, there isn't any major insight here. Non-arabic speakers often make an errors in the spelling which does delay the process.

Need Help?

For more professional advice on your VAT registration in UAE, don’t hesitate to get in touch with us for a quick free consultation.

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