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| VAT IN UAE |
VAT is expected to be introduced with effect
from 1st January 2018 at a standard rate of 5% in the UAE. Businesses must
register for VAT in UAE.The Federal Tax Authority has now introduced an
official Tax Website. The website enables you to know all about VAT in the UAE
and through this portal, eligible businesses can register for VAT in the UAE.
The same website provides an option to register for Excise Tax as well.
For businesses resident in the GCC and UAE Federal
and Emirate Government bodies
Mandatory Registration: You will be required to
register if you are a business that is resident in the GCC and you are making
supplies of goods or services in the UAE and either:
1.Your turnover was more than AED 375,000 in the
last 12 months; or
2.You expect your turnover to be more than AED375,000
in the next 30 days.
Voluntary Registration: If you are not required
to register, you will be eligible to apply for registration if:
1.Either your turnover or expenses (which were subject
to VAT) were more than AED187,500 in the last 12 months; or
2.You expect that either your turnover or expenses
(which were subject to VAT) to be more than AED187,500 in the next 30 days.
Turnover is calculated based on the total value
of taxable supplies (this includes zero-rated
supplies and excludes exempt supplies). Expenses are calculated based on the
total value of purchase which is subject to VAT.
For a more detailed explanation of what can be and/or
should not be included when calculating the turnover/expenses, please refer to the
Taxable Persons on Guide for VAT”
Registering for VAT
On logging into your e-Services account you
will see a button inviting
you to Register for VAT (you may also see
another button inviting you to register for Excise Tax).
Click on “Register for VAT” to start the VAT registration
process.
1.1VAT Getting Started Guide
You will see the guide as soon as you click the
Register for VAT button. The guide is designed to help you understand certain important
requirements relating to VAT registration in the UAE. It is divided into a
number of short sections which deal with various aspects of the registration
process. It also provides guidance on what information you should have to hand
when you are completing the VAT registration form.It is strongly recommended
that you read each of the sections carefully. Once you have done so, check the Click
here box to confirm that you have read it in order to move forward.
1.2 Steps for completing the VAT registration
form There are 8 sections that must be completed on the VAT registration form.
Your progress will be shown each step of the way (denoted in brown) with each
completed section shown in blue with a green tick mark
In order to move from one section to the next,
all mandatory elements of the current section must be completed. Any field that is marked with a red asterisk
(*) is mandatory and must be filled out in order to move to the next section.
If you attempt to move to the next section
without completing the mandatory information in
the current section, you will receive a pop -up
message under the relevant field indicating that additional details are
required.
1.3 Saving your progress It is recommended that
you save your progress as you complete
the form. Click on the Save as a draft button
at the bottom of the screen.
You will be logged out of the system after 10
minutes of inactivity. After completing all
mandatory fields, click the Save
and review button at the bottom right-hand
corner of the screen to proceed to the following section.
Your application will not be submitted at this
point; you will have an opportunity to read through your answers before
submission.
1.4 Submitting your VAT registration
application
To submit the VAT registration form, carefully
review all of the information entered on the form after clicking on Save and
review. Once you are certain that all
of the information
is correct, click on the
Submit for Approval button
at the bottom right-hand corner of the screen. The status of your application on the Dashboard will change to Pending and you will receive an email from us to confirm receipt of your
application.
If the FTA requires any further details from
you in order to assist with the verification of your application, you will
receive an email notification setting out the information required from you.
1.5: Reviewing the progress of your VAT registration
application
To review the status of your VAT registration
application, click on the
Dashboard tab and look next to Status:8
Drafted means the registration form has not
been completed or submitted by the applicant;
Pending means
the registration form
has been received
by us and is under processing or that we are awaiting
further information from you;
Issued means we
have provided to you a Tax Identification Number
(TIN) for either your application for registration for a Tax group or
confirmation of your exception from the VAT.
The TIN for your application for registration for a Tax group will be suffixed
with the letters ‘VG’. The TIN for confirmation of exception from VAT will be
suffixed with the letters ‘XC’;
Suspended means your registration form for VAT
has been suspended and that your registration for a Tax group has been approved
by us and you have received a TRN;
Rejected means the registration form has been
rejected by us; and
Approved means the registration form has been
approved by us and that you are successfully registered for VAT. For more details click
