VAT registration – What is VAT registration in UAE? Explained.

by Vivek Choudhary Nice life

Being enrolled under the VAT law indicates that a business is certified by the government as a supplier of Goods and Services and is allowed to secure VAT from customers and forward the similarly to the government. Only VAT registered businesses will be permitted to do the following:

· Charge VAT on the taxable amount of goods and services

· Claim Input Tax Credit on VAT paid on their purchases, which will be deducted from VAT liability on sales

· Payment of VAT to the government

· Periodic filing of VAT return

Apart from the above, all enrolled businesses have to arrange their business reporting arrangement in line with the agreement elements such as correct and renewed books of accounts, tax paid documents such as tax invoice, credit notes, debit notes, records to all through supplies and outward supplies etc. are required to be declared.

Therefore, knowing the fundamentals of VAT will be one of the essential steps for your VAT preparing and collecting VAT registration will be the primary step towards transiting your businesses to the VAT era.

Who should register under VAT?

Are all businesses liable to register under VAT? No, only those businesses crossing the defined annual aggregate turnover threshold are liable to register under VAT. Based on the registration threshold, a business will either be mandated to register or, as an option, a business can apply for registration or seek exemption from VAT registration.

On this basis, VAT registration in UAE can be classified into the following:

· Mandatory VAT Registration

· Voluntary VAT Registration

· Exemption from VAT Registration

VAT registration Deadlines in UAE

As a move towards VAT implementation in UAE on 1st January 2018, the Federal Tax Authority (FTA) invites VAT registration applications. The FTA has opened its portal to allow businesses to register online. The early call for online registration allows the businesses to be prepared well and ready to charge VAT from 1st January 2018. The vat consultancy in Dubai registration in the FTA portal is carried out in a phased manner depending on the business's turnover.

VAT Turnover Calculation for Registration in UAE

In UAE VAT, businesses whose yearly turnover passes the mandatory registration threshold of AED 375,000 and the optional registration threshold of AED 187,500 are allowed to apply for VAT registration. Therefore, a vat tax consultant in Dubai must recognise what types of supplies are considered to derive the annual supplies turnover and calculate the VAT turnover for registration in UAE.

How to Apply for VAT Registration in UAE

In UAE, the businesses whose turnover exceeds AED 375,000 have to mandatorily apply for VAT registration. The Federal Tax Authority (FTA) has opened its portal for online VAT registration to facilitate the businesses to register. FTA already announces the deadlines based on the turnover of businesses, and the registration will be carried out in a phased manner. While businesses must determine their obligation towards VAT registration, it is also important for businesses to know how to apply for VAT Registration and understand the level of details required to complete the online registration process.

Before applying or starting the online VAT registration process, having a good understanding of the details required and steps to complete the online VAT registration will help you prepare well in advance. As a result, the registration process can be completed easily and avoid unnecessary delays due to incorrect furnishing details, which could even lead to the rejection of the registration application.

· Creation of e-Service Account

· Login to your e-Service Account

· VAT Registration Form: The online VAT registration form contains 8 sections, as shown below, under which the details need to be furnished for completing VAT registration

· About the applicant

· Details of the applicant

· Contact details

· Banking details

· Business relationships

· About the VAT registration

· Declaration

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