SKP Group
5 October 2017
Online registration for VAT commences in the UAE

Recently, online registration for Value Added Tax (VAT) for businesses has commenced in September 2017 on the Federal Tax Authority’s (FTA’s) website

Businesses must register for VAT if their annual supplies and imports in the United Arab Emirates (UAE) exceed or are expected to exceed the mandatory registration threshold limit. The threshold limit for mandatory and voluntary VAT registration is as follows:

Mandatory VAT registration threshold Voluntary VAT registration threshold
AED 375,000 AED 187,500
The key aspects of the registration process are highlighted below:
  • The FTA aims at providing a 24/7 online integrated system to serve the business sectors according to the highest international standards.
  • Tax registration services and the issuance of an electronic tax registration certificate will be free of charge.
  • The entire registration process is divided into 8 broad tabs which are:
    About the applicant Details of the applicant
    Contact details Banking details
    Business relationship About the VAT registration
    Declaration Review and submit
  • Additionally, the VAT registration form shall ask to provide details about the business, few examples of which are:
    • Description of business activities;
    • Last 12 months turnover figures;
    • Projected future turnover figures;
    • Expected values of imports and exports;
    • Whether they expect to deal with GCC suppliers or customers;
    • Details of registration with the Customs Authority, if applicable.
  • An attested paper registration certificate will cost AED 500, while registration and renewal  fees for tax agents are set at AED 3,000 for three years.
SKP comments
As an immediate action point, the VAT taxpayers need to determine their taxability under the VAT law and determine the requirement for obtaining VAT registration. Furthermore, taxpayers who are not required to mandatorily register for VAT should evaluate whether voluntary registration should be taken. Applicability of registration as a tax group should be assessed.

Subsequently, businesses should start collating supporting documentation and information required to be uploaded for the registration process. It is also advised to make requisite VAT implementation and impact related changes in the business and other areas such as accounting, invoicing, information systems, etc. to ensure a smooth transition without any disruption into the VAT regime.
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