How to register VAT in Dubai? / VAT Registration procedure in Dubai / VAT Registration process in Dubai, Sharjah, Abu Dhabi UAE
Important basics about VAT
registration
a.
Who is registered for VAT purposes
When you
register for VAT you are registering the person that is operating a business,
not the business itself. A person can be an individual (i.e. operating as a
sole trader), or a legal person (further defined in Section 4) or another form
of entity (e.g. an unincorporated body such as a charity or club, a partnership
or trust). A VAT registration covers ALL of the business activities
undertaken by the registered person.
When you
apply for VAT registration we will ask you for information relating to the
person that is to be registered, and the current/intended business activities
of that person.
Federal or
Emirate Government bodies and other similar entities in the UAE are to be
registered in the name of the relevant body, notwithstanding the fact that they
might not be operating a business in the normal sense.
b.
Your obligations at this time
The Federal
Tax Authority (FTA) is inviting applications for VAT purposes (where the
registration criteria set out below have been met) in the interim in order
to help
businesses operating in the UAE prepare in good time for
the implementation of VAT on 1 January 2018.
Businesses
with a turnover of over AED 150M should apply to register before 31 October
2017. Businesses with a turnover of over AED 10M should apply to register
before 30 November 2017. All other businesses need to have applied by 4
December 2017 in order to be registered by the start of 2018.
Registration criteria
For businesses resident in the GCC
(Mandatory registration) You will be required to be registered when the VAT law is
in force if you are a business that is resident in the GCC and you are making
supplies of goods or services in the UAE and either:
1. Your turnover
was more than AED 375,000 in the last 12 months; or
2. You expect
that your turnover will be more than AED 375,000 in the next 30 days.
(Voluntary registration) If you are not required to register, you will be eligible to
apply for registration when the VAT law is in force if:
1. Either your
turnover or expenses (which will be subject to VAT) were more than AED 187,500
in the last 12 months; or
2. You expect
that either your turnover or expenses (which will be subject to VAT) will be
more than AED 187,500 in the next 30 days.
Federal or Emirate Government bodies and Charities
All
Designated Government Bodies and Designated Charities must register for VAT
purposes, whether or not
they are otherwise required or eligible for registration (subject to relevant
entity being listed in Cabinet Decision). More details on this subject can be
obtained from the FTA if required.
For businesses resident outside the GCC
You
are required to register when the VAT law is in force if you
are making or expect to make supplies of goods or services in the UAE and there
is no other person who is required to account for the VAT due in the UAE on
your behalf.
If
you have determined that you will be required to register or will be eligible
to register, you should read the rest of the information on this page and proceed
with your application.
Please
notify us via the eServices portal if the above reasons for registrations do
not apply to you but you still consider that you are required to register for
VAT for any other reason.
Definitions that you should be aware
of at this time
Business: Any activity conducted
regularly, on an ongoing basis and independently by any Person, in any
location, such as industrial, commercial, agricultural, professional, service,
or excavation activities or anything related to the use of tangible or
intangible properties.
Legal Person: An
entity with legal personality formed under the relevant laws that is capable of
entering into contracts in its own name. Typically, for example, a company
would be a legal person, as it is formed under companies’ laws and can enter
into contracts. However, it is also possible for other entities to be created
which are similar (e.g. a Limited Liability Partnership, or the companies
formed by Decree under local laws in the Emirates).
Resident: a business is generally
considered resident in a place where it has a place of establishment or a fixed
establishment.
Place of establishment: is the
place where a business is legally established, or in which significant
management decisions are taken and central management functions are conducted.
Fixed Establishment: is any
fixed place of business, other than the place of establishment, in which
business is carried on regularly or permanently and where sufficient human and
technology resources exist to enable the business to make or receive supplies.
Turnover: for the purposes of working
out whether you should register you should take into account the value of:
·
taxable supplies made or to be made;
·
the value of taxable goods and services imported; and
·
if you acquire a whole or part of another business, the value of
taxable supplies made by the acquired whole or part of the business.
Taxable supply: all
supplies of goods and services made in the UAE are taxable supplies, other than
a limited number of exempt supplies.
Do I have to
register if I already have a Tax Registration Number (“TRN”) for Excise Tax?
Yes. You
will be allocated a different TRN for VAT purposes if your application for
registration is successful. If you have registered for Excise Tax before, you
may find the process faster as some of the answers are prepopulated.
Can one person have more than one TRN for VAT
No. A
person can only hold one TRN for VAT purposes at any one time. It is your
responsibility to ensure that duplicate applications are not submitted.
Branches are
not separate legal entities; only the entity of which they are branches should
apply for registration where that entity meets the relevant criteria. Even if
you are operating via branches in more than one Emirate, only one VAT
registration is required.
Registration
of a Tax group
A Tax group
can be formed between two or more legal persons (each
of which must be resident in the UAE), that are associated and which meet
specific control criteria.
The
prospective representative member of the Tax group is the only member who can
create the group. In order to create a Tax group, and if you are the
representative member, you must first apply for VAT registration in the normal
manner using the standard VAT registration application form. Upon submission of
the application, you will be allocated a Tax Identification Number (TIN) which
is required in order to be able to proceed and complete a Tax group
registration form. Please note that this is not a TRN and cannot
be used for VAT purposes.
A separate
Tax group registration application will also have to be completed. Only when the
group application has been accepted and approved will you be issued with a TRN.
What if you only make zero-rated supplies?
If you only
make zero-rated supplies, you may apply to be excepted from registering for
VAT.
You must
still complete a VAT registration application, but you
should answer “Yes” to the question: “Are you applying for an exception from
VAT registration?” (Please refer to the additional instructions provided in the
Authorized Signatory section in the application).
Registration
of a Tax group
A
Tax group can be formed between two or more legal persons (each of which must be resident
in the UAE), that are associated and which meet specific control criteria.
The
prospective representative member of the Tax group is the only member who can
create the group. In order to create a Tax group, and if you are the
representative member, you must first apply for VAT registration in the normal
manner using the standard VAT registration application form. Upon submission of
the application, you will be allocated a Tax Identification Number (TIN) which
is required in order to be able to proceed and complete a Tax group
registration form. Please note that this is not a TRN and cannot be
used for VAT purposes.
A
separate Tax group registration application will also have to be
completed. Only when the group application has been accepted and
approved will you be issued with a TRN.
Important
information about using the online VAT application form
a.
What
information will you need to hand when completing the registration application
During
the application process you will be asked for various documents relating to
your activities. It is advisable that you have these to hand prior to starting
your application.
The
required documentation will vary depending on the profile of the applicant.
Below is a guide showing the types of documents that may be requested, depending on the legal status of the applicant.
Below is a guide showing the types of documents that may be requested, depending on the legal status of the applicant.
Natural
person
|
Incorporated
Bodies (e.g. a company, a UAE company established by Decree or Limited
Liability Partnership)
|
Other
non-Corporate bodies (e.g. a partnership, trust, club, charity, etc.)
|
Government
entity
|
Trade
License(s)
|
Trade
License(s)
|
Trade
License(s)
|
Law
or decree of establishment
|
Emirates
ID
|
Certificate
of Incorporation (Free Zone Companies)
|
Certificate
of Incorporation (if applicable)
|
Contact
Information
|
Partnership
Agreement (if applicable)
|
Certificate
of Incorporation (if applicable)
|
Certificate
of Incorporation (if applicable)
|
Contact
Information
|
Contact
Information
|
Articles
of Association/ Partnership Agreement (if applicable)
|
Club
or Association Registration
|
Bank
Account details
|
Bank
Account details
|
Contact
Information
|
Contact
Information
|
Customs
details (if applicable)
|
Financial
Statements
|
Bank
Account details
|
Bank
Account details
|
Authorized
Signatory documents
|
Customs
details (if applicable)
|
Financial
Statements
|
Financial
Statements
|
|
Passport
and Emirates ID
|
Customs
details (if applicable)
|
Customs
details (if applicable)
|
|
Authorized
Signatory documents
|
Authorized
Signatory documents
|
||
Passport
and Emirates ID of manager, owner and senior management
|
Passport
and Emirates ID of manager, owner and senior management
|
You
are required to upload copies of documents in some cases. Accepted file types
are PDF, JPG, PNG and JPEG. The individual file size limit is 2 MB.
b.
How
much time will the application process take?
The
online application form should take approximately 15 - 20 minutes to complete
if you have all the documents on hand.
c.
Save
as you go
It
is recommended that you save your form as you work through it by clicking the
“save and next” button at the bottom of the form. Your entries will not
be saved automatically.
For
data security purposes, the online registration system will automatically log
you out after a period of 10 minutes of inactivity.
d.
Taking
care
Please
provide as much accurate information as you can; failure to do so can lead to
delays processing your application and could lead to your application being
rejected. All sections marked with an asterisk (*) must be completed otherwise
you will not be able to submit the form.
Please
be aware that you may be subject to penalties if you provide incorrect
information in your application.
e.
What
happens next?
When
your application has been approved you will be provided with a TRN for
VAT and enabled to submit your Tax returns and pay any amounts due online.
Other services specific to VAT will also be available to you.
In
some limited cases we may have to contact you where we have questions about your
application or if we require additional information. Your application will not
progress until you have provided the necessary information and it will be shown
as “Pending” on your eServices portal.
In
all cases if we do not believe that you have met the criteria necessary for VAT
registration your application will be rejected.
If
you have a question about your application, you can submit a Service Request on
the eServices portal.
To know more whatsapp +923218408828 | email: info@thebscon.com
To know more whatsapp +923218408828 | email: info@thebscon.com
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