Mandatory Registration
Registration for VAT is mandatory for an entity with an annual turnover or VAT-able operating or capital expenditures reaches or exceed limit of Aed 375,000 per annum, which includes the anticipated turnover or expenditures of the subsequent 30 days.
Voluntary Registration
An entity can voluntarily obtain VAT Registration Certificate from Federal Tax Authority (FTA), where turnover or VAT-able operating or capital expenditures reaches or exceed limit of Aed 187,500 per annum.
Two or more entities may apply for Registration as a Tax Group to obtain single Tax Registration Number (TRN) if all of the following conditions are met:
- Each shall have a Place of Establishment or Fixed Establishment in the UAE.
- The relevant persons shall be Related Parties.
- One or more persons conducting business in a partnership shall control the others.
One entity will represent all other entities to FTA for the purposes of VAT Returns filing, correspondences with Authority and other pertinent matters.
An entity's business model and location matter to determine Registration requirement. Whether your company is located in designated or non-designated free-zone area and whether you are supplying within free-zone only or in mainland as well, are relevant matters to be considered for VAT registration.
Documents listed below are required to apply for registration:
- Personal credentials of authorized signatory, e.g., passport copy, Emirates ID.
- Trade license.
- Supporting for turnover or VAT-able operating or capital expenditures as per requirements stated in voluntary or mandatory registration.
- Bank Account details
- Other documents authorizing the entity/individual to undertake activities in UAE, e.g., certificate of incorporation, articles of association, power of attorney, etc
- Custom registration documents in each Emirate, if applicable.
- Estimated imports from entities in each GCC country.
- Estimated exports to entities in each GCC country.
- Expectation to deal with GCC suppliers or customers
An entity registered with FTA for VAT purpose is required to apply for deregistration within 20 business days of the occurrence of any of the below circumstances:
- Estoppel of Taxable Supplies.
- Taxable Supplies is less than the Voluntary Registration threshold, i.e., AED 187,500/ in previous 12 consecutive months and there is no anticipation to cross this limit in subsequent 30 days.
To apply for de-registration, the Final VAT Return is required to be submitted along-with the payment of the outstanding VAT liabilities that including both tax and fines, if any.
How we stand out as an Expert VAT Consultant
We have served wide array of clients in various industries to assist them in obtaining VAT Certificates from FTA. Based on our well-groomed experience, we are confident to support our clients on standalone and Group VAT Registration.
Our experienced team of VAT Consultants are well abreast with Law & Regulations, hence we possess confidence in dealing with VAT De-registration of an entity related to any business segment.
