Vat Registration & Excise Tax Registration
VAT Registration &Excise Tax
Registration
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VAT Registration
in UAE
How to register for
VAT services in UAE?
Anyone willing to avail of VAT registration can do so by opening an e-services account in the FTA portal using their personal email addresses.
Some of the main documents required to avail VAT registration have to be submitted to FTA and they are as under:
Description of business activities
Bank Account details
Last 12-month turnover in AED
Trade License of the company
ID documents of the signatory, Emirati ID card, passport, etc.
Certificate of incorporation, Articles of Association, Power of Attorney, etc.
12 months sales supporting documents
Expected turnover for the next 30 days
One year estimated value of imports from each GCC country
One year estimated value of exports to each GCC country
Whether you expect to deal with a customer or a supplier from a GCC country
Supporting documents for customs registration in each emirate (If applicable).
Who should get Excise/
VAT registration in the UAE?
Mandatory VAT Registration
A Non-Resident shall mandatorily get VAT registration in UAE if he supplies any commodity in UAE irrespective of his Turnover. This registration will only be mandatory if no one else holds the responsibility to pay VAT on his behalf against such supplies. This rule applies to both natural and judicial persons.
Any person, natural or otherwise, who supplied goods/sales of more than 375,000 AED over the previous 12 months shall mandatorily do his VAT registration in UAE
Moreover, if any person who estimates, on reasonable grounds, that his estimate will exceed 375,000 AED, in the next 30 days will also have to apply for VAT registration.
Voluntary VAT registration
A person can voluntarily opt for VAT registration if value of his supplies over a period of previous 12 months exceed AED 187,500, but less than the mandatory limit of AED 375,000
A person can also voluntarily opt for VAT registration if value of his supplies over a period of coming 30 days will exceed AED 187,500, but will remain less than the mandatory limit of AED 375,000
A person can voluntarily opt for VAT registration if he expects the value of his taxable expenses over a period of previous 12 months exceeds AED 187,500
A person can also voluntarily opt for VAT registration if value of his taxable expenses over a period of coming 30 days will exceed AED 187,500
Exceptions for
VAT registration in UAE
Concept of
Tax Group
The FTA in UAE stipulates that any person involved in any sort of economic activity can not have more than one VAT registration number. If a person holds financial, economic, or regulatory interests in more than one business entity, need to group all those concerns under one VAT registration number. Such clubbing of business entities under one VAT number eases requirements for compliance with the UAE VAT laws. The tax group will be taken as one single entity for UAE VAT purposes. Any transaction within the tax group will be out of the scope for UAE VAT.
Why ebs?
While numerous steps have been taken by the UAE Authorities to simplify the VAT registration process, it still has its own set of challenges when it comes to applying and filing for a number or getting registered. The plethora of documents required, and the meticulous filling requires accuracy and acumen could baffle many an individual. Also, FTA asks for details and minute clarifications that can be overwhelming for an untrained mind.
FAQ’s
VAT registration is the process of listing your business with the government as active in production and sales. After the registration for VAT, it is able to reclaim any VAT paid on company purchases and also becomes responsible for changing Vat on any services or goods sold. If you are not VAT registered but you still have to pay the VAT on your purchase but are unable to reclaim it.
UAE resident companies and businesses that make taxable supplies in the UAE must register for VAT. They are provided the value of their taxable supplies and imports in the last 12 months exceeded. A company must register for VAT if its taxable imports and supplies exceed AED 375,000 per annum.
Firstly, log on to your state VAT website and click on the registration tab. Add all the information and attach the required documents to file a request for registration of VAT.
Secondly, you will be allocated a temporary VAT registration number.
Lastly, once the process is done, you will get a permanent VAT registration number.
If your VAT registration is done, then you can reclaim VAT on all the services and goods you purchase. VAT is the output tax you charge and input tax refers to the tax you pay on goods and services. If your input is higher than your output, you can claim it back through the HMRC.
An excise tax is a legislated tax on specific services and goods at purchase such as fuel, alcohol, and tobacco. Excise tax is imposed on certain services and goods like alcohol and gasoline and these taxes are paid directly by the businesses. The excisable goods are electronic smoking tools and devices, liquids used in tools and devices, and sweetened drinks in UAE.
Any business that imports, stockpiles excise goods, produce goods, or releases them from a designated zone in the UAE is obliged to register for Excise tax. Once you have registered for excise tax, you must file your excise tax return by the fifteenth day from the end of each tax good.
Excise duty is implied on the taxable person who sells certain kinds of goods that are harmful to the environment or human health. These companies have to comply with the UAE excise duty laws. Businesses will make sure that they have registered for VAT and complete all the required documentation.
