VAT Registration

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VAT Registration

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In the United Arab Emirates, all enterprises and individuals with an annual turnover of DH 375,000 or more are required to register for VAT.

VAT was adopted by the UAE government on January 1, 2018. To continue conducting business in any emirate of the United Arab Emirates, all persons and firms reaching the above-mentioned threshold limit must register for VAT.

In the UAE, the VAT registration procedure is done online, and anybody who wishes to register for VAT may do so by visiting the Federal Tax Authority's (FTA) web site and beginning the VAT registration process.

Before beginning with the VAT registration procedure, the applicant should examine a number of factors, such as whether to choose for required or voluntary registration, whether to register as a standalone or as part of a Tax Group, and so on. If you wish to register for VAT, go to FTA's website.

The following documents are required by the FTA for VAT registration:

Company's Certificate of Incorporation
Company's Memorandum and Articles of Association
Power of attorney (if any)
Copy of company's Trade license
Copy of the authorized signatory's Passport
Copy of Emirates ID of the authorized signatory
Financial Statements/ audit report / annual turnover detail
Supporting documents relating to customs registration (if applicable)

In order to register for VAT in the United Arab Emirates, the following information must be supplied to the Authority:

Details regarding the entity’s business activities
Projected turnover for the next 30 days
Turnover details of last 12 months as well as invoices to support the provided detail
Estimated value of exports for one year to each GCC member state
Estimated value of imports for one year from each GCC member state
Whether the entity is expected to conduct business with GCC suppliers or customers
Details relating to entity’s bank account.

Services for VAT Registration

As a Tax Group, you must register for VAT.

In the UAE, a lot of enterprises operate under various trade licenses as part of a same group.
Many times, enterprises registered to conduct business in several sections of the United Arab Emirates, as well as with numerous professional groups or government bodies, join together to establish a VAT Group. Entities wishing to register as a VAT Group must meet the following requirements:

All Tax Group firms must have a head office, a representative office, or a branch office with a license in the United Arab Emirates.
The group's entities must be tied to one another.
The VAT group's structure should be designed in such a way that one entity/person or more than one entity controls all of the group's entities.

If an entity/person does not have a shareholding in all of the other companies in the group but still has control over those companies through a power of attorney, that entity/person is classified as a related party of all of those companies for VAT Group purposes and can thus choose the VAT Group option.

Furthermore, if multiple entities decide to register for VAT as a VAT Group, all group entities will be required to provide evidence of not only the VAT group's structure showing the shareholding and controlling structure, but also a resolution approved by the board of each member company of the group.

The resolution should specify that the group has designated an entity (a group member company) as its representative for the purpose of registering for VAT in the United Arab Emirates.

Important considerations when giving bank information for VAT registration purposes
If a firm registers for VAT as a stand-alone, it can supply information on one of its bank accounts in the United Arab Emirates.
The entity must supply information such as the bank's name, the name of the branch, the account title, and so on.

If two or more entities seek to register for VAT via the VAT group option, the information of one of the two entities' single bank account (ideally a joint account) would be sufficient to fulfill the VAT registration criteria in terms of bank account data. The details of bank account to be provided to the authority should be that of the Tax group representative.

Is Arabic required for filing the VAT registration application, or may English also be used?

Even though the application for VAT registration is submitted in English, the applicant must give information in three columns of the application form in Arabic. The following information must be submitted in Arabic:

Company name
Manager name
Authorized signatory’s name

What assistance can Nadeem and Umendra Chartered Accountants provide you in registering for VAT in the United Arab Emirates?

Nadeem and Umendra Chartered Accountants has a distinct section that handles tax concerns for our clients that conduct business in any emirate of the United Arab Emirates. We have a staff of certified tax specialists that manage our clients' VAT-related issues/questions, and we also have a separate wing that offers our clients with VAT registration services throughout the UAE. We advise and help our clients with regard to VAT registration in any emirate of the United Arab Emirates.

Our VAT registration team would require all of the relevant information/documents for VAT registration in the United Arab Emirates during the initial step of VAT registration. You can send the requested information by email. We need the papers / information in soft form because the registration procedure will be performed online, thus we don't need physical copies of the paperwork.

We shall begin the VAT registration procedure on the FTA's web portal with your e-mail ID after you furnish us with all of the needed information / papers deemed necessary for VAT registration in the United Arab Emirates and also give us the green light to proceed. Once the application form has been completed and validated by the senior partner/tax manager, it will be sent to you for review before you provide your approval to submit the application to the Federal Tax Authority. The paperwork will be sent to the tax authority only once we have received final permission from you. Once the form is submitted, the tax authority will begin processing it, and once the process of confirming the information on the application form is done, the tax authority will contact you.

In addition to VAT registration, we provide our clients services like as VAT implementation, VAT consultancy, and VAT counseling throughout the UAE.