VAT Registration with FTA
Abu Dhabi, November 29, 2017 – The Federal Tax Authority (FTA) has called on natural and legal persons exercising business in the UAE to expedite their registration process for Value Added Tax (VAT) to avoid the risk of missing the January 1, 2018, deadline.
Mandatory Turnover for Registration: This applies to businesses whose taxable supplies and imports of goods and services exceed AED 375,000 over the previous 12 months. Taxable supplies are identified as all supplies of goods and services made by a Person that are not exempt.
Voluntary Turnover for Registration: Taxable supplies and imports of goods and services exceeds AED 187,500 over the previous 12 months.
The FTA has urged businesses to provide accurate information and make sure they enter it properly into the application form.
To complete the registration process, scanned documents must be attached, including the business or trade licence, passport/Emirates ID (for UAE residents) of the manager or owner of the business, and the authorised signatory (if the signatory is not the manager him/herself), as well as proof of authorisation for the manager or signatory (e.g. articles of association, power of attorney attested by notary, etc.).
Issuance of TRN: Issuing a Tax Registration Number (TRN) may require up to 20 working days or less. Therefore, and in order to ensure that the application is processed – and the TRN issued before January 1, 2018 – the FTA urges businesses to complete their registration to avoid the administrative penalty of AED 20,000, as well as additional penalties related to late payment of tax , according to the Cabinet Decision No. (40) of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.
Documents Required for Registration:-
1.Copy of Trade License
2.Passport copy of the owner/ authorized partner who owns the license
3.Copy of emirates ID of the owner/ authorized partner who owns the license
4.Memorandum of Association (MOA) / Power of Attorney (POA)
5.Contact Details of company (complete address & P.O Box)
6.Concerned person contact details
7.Bank Details including IBAN
8.Income statement for the last 12 months (Signed & Stamped by the owner or the manager)
9.Expected revenue and expense for the next 30 days after VAT implementation
10.Are they exporting or importing?
11.Are they dealing with any custom department? If yes. What is the custom code? With the Copy of Dubai Custom Code Certificate.