VAT Registration Process in UAE – All you need to know

The Government of the UAE introduced the Value Added Tax (VAT) in January 2018. All businesses with annual taxable imports and supplies of over AED 375,000 are mandatorily required to register for VAT. The purpose of implementing this new tax is to decrease the dependency of the administration on oil and other hydrocarbons for revenue generation.

Though all the businesses managed on the mainland and free zones in the UAE are covered under the VAT system, however, if a particular region is declared as a ‘designated zone’ by the UAE Cabinet, then such designated zone shall be excluded from the tax system, and hence they will not be required to register for VAT. Also, businesses with an annual turnover of taxable imports and supplies between AED 187,500 and AED 375,000 will have an option to register for VAT, though not mandatory.

If you come under the criteria for registration, here is the step by step guide of how you can register for VAT:

1. For VAT registration, you need to visit the Federal Tax Authority (FTA) website. Here is a link to it https://www.tax.gov.ae/index.aspx.

2. After you log in to the website, you find “E-SERVICES” section. Click on it. On the next page, you will be asked to log in or signup. If you already have an e-services account, use that, or else create a new account be signing up. Follow instructions for account creation, and fill your details accordingly. Read the terms and conditions carefully and then click on signup.

3. After signing up, you will receive an email at the email address you mentioned. Verify the email by following the link given in the email body. Please note that you are required to verify your email address within 24 hours of signing up, as the email link will expire after that. Immediately after you verify your email through the link, you will be asked to log in using your credentials for the first time.

4. Once you are logged in, you will see a link that says “Register for VAT”. Click on the link to start the registration process. As soon as you click on the link, you will see a “Getting Started Guide”. The guide contains all the rules, guidelines and requirements for VAT Registration. It is divided into a number of sections that give describe various aspects of registration. It is highly recommended that you go through the details at least once.

5. In total, there are 8 parts of the registration form. Each part needs to be duly completed and as all the completed parts will be in blue with a green tick. Since it is a step by step process, the current part must be completed before moving on to the next section. Please note that fields marked with a red asterisk (*) have to be filled compulsorily.

6. After filling each section of the form, it essential that you save your progress by clicking on the “Save as draft” as if you will be automatically logged out if there is inactivity for ten minutes. And when all the sections are completed click on save and review. Go through all the sections once again and make sure that there is no error.

7. Once reviewed, the form is ready for submission. You will see “Submit for Approval” button on the bottom right-hand corner. Once you submit, go back to the dashboard. There you will find that status of your application will be ‘Pending’. You will also receive an email confirming the submission of your application for VAT. If the department requires any other details, you will be notified about the same through email.

8. You can track the status of your application on your dashboard of the FTA website. You need to check the status from time to time for an update in it. You should see this space for confirmation if you have been notified about the status update via email. There are different types of application status, and those are listed below:

  • Drafted – This means the registration application has not been completed or sent.
  • Pending – This means the registration is complete and sent for approval. This also shows that the application is under the process of approval.
  • Issued – Means that the Tax Identification Number (TIN) has been issued to you.
  • Rejected – This means that your application has been rejected by the department.
  • Approved – This means that your application has been approved and that you are now successfully registered for VAT.

REQUIRED DETAILS FOR THE FORM

  • Following are the details that are required for the registration form:
  • Name of the Applicant
  • Legal of the Entity (English & Arabic)
  • Trade name (English & Arabic)
  • Trade license details
  • Documents related to incorporation
  • Contact details of the applicant
  • Banking details
  • Details related to VAT (Nature of business, turnover, etc.)
  • Name and details of Authorised Signatory

Please keep a scanned copy of all the documents ready as you will be required to upload them wherever necessary. If you have any doubts, you can contact the department for further clarifications. And if you find it difficult to complete the registration, please take assistance from firms undertake registrations.