Namita Das

Namita is a Charterd Accountant by education who is fascinated by adding value and assisting students to get professional qualifications. She is working as VP Academics at Apex Institute.

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[Beginner’s Guide] Introduction To VAT Registration

A comprehensive resource for Value Added Tax (VAT) In UAE.

Business owners in the UAE can start registering for VAT on 1st October, 2017. This guide explains the process involved in registering your business for VAT.

This section will cover the following topics

Eligibility for registration:

The thresholds for businesses to register for VAT are based on the value of their taxable supplies, which include standard-rated supplies, zero-rated supplies, reverse charges received, and imported goods.

  • Mandatory Registration

    • A business must register for VAT if the total value of its taxable supplies and imports within the UAE exceeds the mandatory registration threshold of AED 375,000,  either during the previous 12 months or within the upcoming 30 days.
  • Voluntary Registration

    • A business can voluntarily register for VAT if the total value of its taxable supplies and imports within the UAE exceeds the voluntary registration threshold of AED 187,500, either during the previous 12 months or within the upcoming 30 days.
    • A business can also register voluntarily if its expenses exceed the voluntary registration threshold.
  • Non-resident Registration

    • A non-resident doing taxable business in the UAE needs to register for VAT regardless of the above-mentioned thresholds.

VAT will come into effect on 1st January, 2018. The electronic registration portal for VAT will be open during the fourth quarter of 2017 on the Federal Tax Authority (FTA) website.

How to register for VAT?

Businesses can start registering for VAT on 1st October, 2017 by logging in to the online VAT registration portal provided by the Federal Tax Authority (FTA). The registration is a simple process:

1. Open the VAT registration portal on FTA website and create an user account.

2. After you create your account, an email will be sent to you to verify the details and activate your account. Now you can log in to the portal using your user credentials.

3. Once you have logged in, navigate to the VAT registration form and furnish the necessary details to complete the registration.

4. Provide supporting documents to validate your information, including

  • Passport copy
  • Emirates ID
  • Trade licence
  • Any other official documents authorizing your business to conduct trade within the UAE.

Provide the following details about your business:

  • Description of the business.
  • Turnover figures for the previous 12 months.
  • Projected turnover figures for the future.
  • Expected values of imports and exports.

5. Once you have completed the application, click Submit. The FTA will process your application and respond with an email confirming your Tax Registration Number (TRN).

Who can register as a VAT group?

If a company has multiple entities that trade with each other, it is possible to register as a  VAT group. In a group registration, all of the entities within the VAT group are treated as one entity for VAT purposes. The supplies made between members of a VAT group are disregarded (no VAT is due on them). The supplies made by the VAT group to an entity outside the VAT group are subject to normal VAT rules. When a company registers as a VAT group, it receives a single TRN and will file a single VAT return.