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).
https://www.tax.gov.ae/index.aspx Below we explained the entire process to do the registration in online.
How to create an account in the UAE VAT Online Portal?
The registration is a simple process:
You can access the Federal Tax Authority’s online portal https://eservices.tax.gov.ae/en-us/ and start the registration process.
1. Click register from home page shown in the above slide or click the above link. Once you click the link, you will reach to a page as shown below:
2. Being the first time user, before login, you have to register. Hence click for signup to register at the top right corner. Once you click here, you will be reached to a page to create an account, as shown below:
Once you register, to verify your account, an email will be sent to your registered e-mail address with a link. You can click this link and activate your account. How to proceed with VAT Online Registration?
Once you activate your account, navigate to the VAT registration form and furnish the necessary details to complete the registration.
You can reach to the VAT online portal as shown below.
As the first step, you should decide, whether you are registering your company or yourself as a natural person. If you have more than one company in operation, analyze whether to register the companies separately or as a Tax Group?
What are the documents to be kept ready before you proceed for registration?
1. Trade license copy.
2. Memorandum of Association of the company.
3. Articles of Association of the company.
4. Passport copy of the manager/authorized signatory.
5. Emirates ID copy of the manager/authorized signatory.
6. Power of attorney copy (if any).
7. Financial Statement/Audit Report/Sales Calculation Sheet.
8. Certificate of Incorporation (wherever applicable).
9. Customs Authority registration Certificate (if applicable).
What are the other Information required for VAT online registration?
1. Business activities of the companies.
2. Previous 12 months turnover figures.
3. Projected Sales.
4. Expected values of imports and exports.
5. Whether you expect to deal with GCC suppliers.
6. Whether you expect to deal with GCC customers.
7. Bank account details etc.
Who can opt for Group Registration?
In the UAE, many companies both corporates as well as SMEs operate with multiple licenses and work as one group. The companies might be registered in different emirates under different authorities, but operate together as a group. In such cases, they can look for registering together as a Tax Group. Following conditions are to be satisfied to opt for registering as a Tax Group.
1. All companies should have their main office with license (place of establishment) or a branch office or representative office (called fixed establishment) in the UAE.
2. They should be related parties.
3. Either one controls others, or two or more persons together control the others.
In practical scenario, even though one is not a shareholder in all companies but is controlling the companies by his power of attorney, it can be considered as related party for the purpose of VAT group and can choose Tax Group option. Further while registering as a Tax Group, we should provide an evidence of the group structure showing the controlling or shareholding structure as well as a board resolution from each member companies resolving that they have appointed a company as the representative of the group for VAT purpose.
What are the important points we have to consider while giving the bank account details?
If you are registering your company as standalone, you can give any one of the UAE bank accounts. You have to provide the name of the bank, branch name, account name and IBAN code. You should give the bank account of the company for which you are registering, and not of any other related party bank account.
If you are registering for VAT under TAX group option, you can give only one bank account number; not of all companies of the group. This bank account will be of the representative company which you choose while registering for VAT as Tax Group.
Can we submit the VAT online registration in English also or Arabic is mandatory?
You can submit the application in English as well. However, there are 3 columns where we have to submit the information in Arabic as well.
1. Name of the company
2. Name of the manager
3. Name of the authorized signatory
How to calculate turnover for VAT registration purpose?
The threshold for registration will be:
. Mandatory registration threshold: AED 375,000
. Voluntary registration threshold: AED 187,500
Following sales are to be considered for arriving the threshold.
1. Standard rated supplies
2. Zero-rated supplies
3. Reverse charged services received &
4. Imported Goods.
However, exempted supplies should not be considered for above calculation.