VAT Registration in UAE

1
VAT REGISTRATION IN UAE
Presented by
Taha Ahmed
Managing Partner
2
VAT INTRODUCTION & BASICS.
VAT was introduced across the UAE on 1st January 2018 under VAT is not only implied for organizations but also for any
Federal Decree Law No.8 of 2017 – Article 13 individuals aka natural person under FTA law
The Objective is somewhat to generate new source of Once a business is registered for VAT with FTA then it
income for utilization of providing high-quality of public will be referred as “Taxable Person” under FTA law
services & facilities whereas for individual registering for VAT will be referred
as “Natural Person”
Tax Rates – Standard rate (5%) / Zero rate (o%) / Exempt
After successfully getting register for VAT with FTA. A

business or individual will be given 15 digit identification
Reverse Charge Mechanism (RCM) number aka TRN that is Tax Registration Number by FTA
Effects/Implications of VAT on Businesses

3
WHO SHALL REGISTER FOR VAT?
Any business or individuals who are making taxable supplies

or providing taxable services or importing goods in UAE will
require to register for VAT under mandatory or voluntary
registration schemes
Mandatory Registration: Voluntary Registration:

Mandatory registration is due if previous 12 months or Voluntary registration is due if previous 12 months or
expected next 30 days taxable revenue or taxable expected next 30 days taxable revenue or taxable
expenses are due to reach AED 375,000/- ($100,000/-) expenses are due to reach AED 187,500/- ($50,000/-)
in value. in value
A business or individual with taxable supplies and due A business or individual with taxable supplies and due
to reach value of AED 375,000/- require to register to reach value of AED 187,500/- may opt to register
mandatory to avoid administrative penalty of AED voluntary to benefit of claiming input VAT. Where as
20,000/- failing to register under voluntary threshold scheme will
not counter any administrative fines
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TAXABLE SUPPLIES
CALCULATION.
1 3
Taxable Supplies Include:
Standard Rate Supplies Imported Goods & Services

of 5%
2
or aka Reverse Charged
Goods & Services
Zero Rate Supplies of 0%
⁎ Exempt Supplies & Services are not

included when calculating taxable supplies
for the purpose of VAT registration.
CHOOSING DATE OF REGISTRATION AND TIME 5
REQUIRED TO GET REGISTER FOR VAT.
Choosing date of registration depends on whether you choose to

register VAT on determined records of “Historic Test” or
anticipated records of “Future Test” as well as whether your VAT
registration is “Mandatory” or “Voluntary”
HISTORIC & FUTURE TEST WITH MANDATORY

REGISTRATION:
Historic Test: VAT registration will be effective from the first day
of the month after the month Mandatory Threshold is reached or
exceeded
An earlier date of registration may also be accepted if only on
agreement with FTA
Future Test: VAT registration will be effective from the first day
of the month on the basis that proof that Mandatory Threshold will
reached or exceeded in next 30 days
An earlier date of registration may also be accepted if only on
agreement with FTA
CHOOSING DATE OF REGISTRATION AND TIME 6
REQUIRED TO GET REGISTER FOR VAT.
HISTORIC & FUTURE TEST WITH VOLUNTARY

REGISTRATION:
If you are registering Voluntary then with both tests it will
be from the first day of the month after the VAT
registration was applied and on VAT application approval a
date may be agreed as per the applicant request and in
agreement with FTA
REGISTRATION TIME PERIOD:

VAT registration application requires 22 working days as
per FTA official declaration. It may take around 30 days
including weekends
If VAT registration application lacks clarification or FTA

needs more information for the business or individual who
has applied then it may further increase time to get
register
7
HOW TO REGISTER FOR VAT.
Steps to perform in order to register for VAT:
1. Visit “www.tax.gov.ae” and select “eServices”
2. Once you clicked on “eServices” then click on “Register here” and

sign up with your desired “email address” which will also be your
“username”
7
Steps to perform in order to register for VAT:
3. After signing up please look out for an email from FTA to confirm
your account sign up with FTA by clicking on the confirmation link by
FTA
4. Now click on Login link in the email and set up your password
and subsequently log into your account
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5. Complete all 8 sections of the application. Here are the
following 8 sections that require to be filled with accurate
information:
1. About the applicant

2. Details of the Business / Entity to be registered
3. Contact details
4. Banking details
5. Business relationships (optional)
6. About the VAT registration
7. Declaration
8. Review & Submit
6. Submit the completed application form approval and look out

for the application submission confirmation email from FTA
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7. Once your form is submitted you can review your

status of registration by seeing account Dashboard
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VAT REGISTRATION
DOCUMENTATION.
1. Businesses Trade Licenses
2. Business Owner(s) & Company Manager Passport
3. Business Owner(s) & Company Emirates ID if visa Status is UAE Resident
4. Memorandum/Articles of Association and Formation Certificate if Available
5. Business Complete Contact Details
6. Business Operational Bank Account Details and IBAN Verification Letter
7. Monthly Revenue Details for Last 12 Months and Next 30 days Expected
8. Monthly Taxable Expenses Details for Last 12 Months and Next 30 days Expected
9. Copies of Revenue Invoices & Taxable Expense Bills
10. Business Authorized Signatory Details Including Passport & Emirates if he/she not
an Owner or Manager. In few cases POA may also require to proof authorization
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POST VAT REGISTRATION
APPLICATION SUBMISSION EVENTS.
After the submission of application, the FTA will
T
review the application and come up following results:
A
1. Application get approved and the TRN is issued
V
with availability of VAT Certificate as the proof(s)
of the successful registration
2. FTA requires further clarification and information
and application goes into the resubmission status
3. FTA rejects the application
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VAT EXCEPTION OPTION
APPLICATION SUBMISSION EVENTS.
EXCEPTION FROM VAT REGISTRATION

(FTA LAW – ARTICLE 16)
A Business/Individual (Taxable Person) that wants to apply
for an exception from Tax Registration on the basis that all of
his supplies are zero rated shall apply in the same accordance
and procedure just like a normal VAT registration application
with just filling the exceptional section of the application
The FTA Authority will review the request in the application to

accept the exception from VAT registration or notify that this
particular request is rejected
Our Clients. 14
Taha Ahmed
MBA, ACCA, MCOM, MIPA, AFA, BCOM
Managing Partner
M: +971 56 524 0583 T: +971 4 223 2309
E: taha@pushdigits.ae / info@pushdigits.ae
W: www.pushdigits.ae
Featured In
Push Digits Global
UAE | Australia | Singapore | Pakistan
“Thank you Everyone for Watching this Presentation”
A rightly claimed advantage of VAT:
Provide stronger incentives for businesses to control costs and Encourage, or atleast not discourage, Savings.

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VAT REGISTRATION IN UAE

After successfully getting register for VAT with FTA. A

Effects/Implications of VAT on Businesses

Any business or individuals who are making taxable supplies

Mandatory Registration: Voluntary Registration:

Standard Rate Supplies Imported Goods & Services

Zero Rate Supplies of 0%

⁎ Exempt Supplies & Services are not

REQUIRED TO GET REGISTER FOR VAT.

Choosing date of registration depends on whether you choose to

HISTORIC & FUTURE TEST WITH MANDATORY

REQUIRED TO GET REGISTER FOR VAT.

HISTORIC & FUTURE TEST WITH VOLUNTARY

REGISTRATION TIME PERIOD:

If VAT registration application lacks clarification or FTA

Steps to perform in order to register for VAT:

1. Visit “www.tax.gov.ae” and select “eServices”

2. Once you clicked on “eServices” then click on “Register here” and

Steps to perform in order to register for VAT:

1. About the applicant

6. Submit the completed application form approval and look out

7. Once your form is submitted you can review your

2. Business Owner(s) & Company Manager Passport

3. Business Owner(s) & Company Emirates ID if visa Status is UAE Resident

4. Memorandum/Articles of Association and Formation Certificate if Available

5. Business Complete Contact Details

6. Business Operational Bank Account Details and IBAN Verification Letter

9. Copies of Revenue Invoices & Taxable Expense Bills

After the submission of application, the FTA will

EXCEPTION FROM VAT REGISTRATION

The FTA Authority will review the request in the application to

M: +971 56 524 0583 T: +971 4 223 2309

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