Businesses that are required to register for VAT will need to set up an online account on the FTA website and complete the VAT registration form. The FTA(Federal Tax Authority) has announced that a phased registration approach has been introduced ,which is scheduled to start from January 1, 2018, at a standard rate of 5 per cent.
Taxpayers can register voluntarily if the total value of their taxable supplies exceeded Dh187,500, or if the business expects to exceed that threshold within the next 30 days. The businesses, with an annual turnover of over Dh150 million, also urged by the authority to register before October 31, 2017 while businesses with an annual turnover exceeding Dh10 million are allowed to register before November 30, 2017.
VAT registration process in UAE is as below
- The applicant should register online on the Federal tax authority website.
- VAT registration form would require specific business details, such as:
- Description of business activities.
- Last 12 months turnover figures.
- Projected future turnover figures.
- Expected values of imports and exports.
- Whether you expect to deal with GCC suppliers or customers?
- Details of Customs authority registration, if applicable
- The various documents required are not limited to: Document identifying the authorized signatory e.g. Emirates ID (Authorized signatory can be director, owner, someone holding a power of attorney to sign on behalf of the business).
- Trade license.
- Other official documents authorizing the entity to conduct activities within
- Certificate of incorporation
- Articles of association
- Bank account details
If registration is successful, a Tax Registration Number (TRN) will be issued within 20 days.