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VAT Registration

Business owners in the UAE can start registering for VAT on 1st October, 2017. This guide explains the process involved in registering your business for VAT.

This section will cover the following topics

Eligibility for registration

The thresholds for businesses to register for VAT are based on the value of their taxable supplies, which include standard-rated supplies, zero-rated supplies, reverse charges received, and imported goods.

VAT will come into effect on 1st January, 2018. The electronic registration portal for VAT will be open during the fourth quarter of 2017 on the Federal Tax Authority (FTA) website.

How to register for VAT?

Businesses can start registering for VAT on 1st October, 2017 by logging in to the online VAT registration portal provided by the Federal Tax Authority (FTA). The registration is a simple process:

1. Open the VAT registration portal on FTA website and create a user account.

2. After you create your account, an email will be sent to you to verify the details and activate your account. Now you can log in to the portal using your user credentials.

3. Once you have logged in, navigate to the VAT registration form and furnish the necessary details to complete the registration.

4. Provide supporting documents to validate your information, including

Provide the following details about your business:

5. Once you have completed the application, click Submit. The FTA will process your application and respond with an email confirming your Tax Registration Number (TRN).

VAT timeline

Annual turnover Date for registration
Greater than AED 150 million Before 31 October 2017
Greater than AED 10 million Before 30 November 2017

The rest of the businesses that must be registered by 1st January 2018 should submit their registration applications before 4th December 2017 so that the registration process is completed in time before the VAT regime starts.

Who can register as a VAT group?

If a company has multiple entities that trade with each other, it is possible to register as a  VAT group. In a group registration, all of the entities within the VAT group are treated as one entity for VAT purposes. The supplies made between members of a VAT group are disregarded (no VAT is due on them). The supplies made by the VAT group to an entity outside the VAT group are subject to normal VAT rules. When a company registers as a VAT group, it receives a single TRN and will file a single VAT return.

Deregistration

A VAT-registered person in the UAE can apply to de-register if they meet any of the following conditions:

A person who registers for VAT voluntarily must stay registered for at least 12 months before applying to de-register.

Every member state of the GCC can determine the minimum period for which taxpayers must remain registered. Taxpayers cannot deregister before the minimum date set by their state. Member states can also set additional conditions for taxpayers to be considered for deregistration.

After a taxable person applies for deregistration, the FTA will notify them whether they have been deregistered and specify the date from which the deregistration will be effective.

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