How to Register for VAT in the UAE
Applying for VAT Registration is a two-step process.
At step 1, you need to create an e-Services account with the FTA and then you need to complete the VAT registration process.
Creation of e-Service Account
To create an e-service account you need to visit ‘https://eservices.tax.gov.ae‘ and click the ‘Sign up’ option.
Once you have done this you will need to provide an email address and other basic details and set a new password.
Then you will verify the email.
Once a new account is created, the user can login and register for VAT. The user will be required to complete the registration form and on successful registration and approval from the FTA, a Tax Registration Number (TRN) will be provided to the user.
The form should be completed by a person who has been authorized by the business e.g. a Director, owner, someone holding Power of Attorney to sign on behalf of the business, tax agent etc., as you will need to provide documentary proof of granting such authority e.g. A Power of Attorney or an agreement with the tax agent appointed.
Once the above has been completed, you will need to login to the account and start registering for VAT by clicking on the Register for VAT option as below:
Once the above has been done, there will be a list of guides available to review and once that has been completed, you will need to tick the confirmation at the bottom of the page to continue.
Filing the VAT registration application
TYPE OF BUSINESS
A natural person (i.e., an individual or operating as a sole trader), a legal person (e.g. an incorporated business, a company) or another form of entity (e.g. an unincorporated body such as a charity or a club, a partnership or a trust). Another option should be selected if you are applying as a non-resident business in the UAE and the box of the description should be filed as Business registering as a non-resident business.
ARE YOU REGISTERING MANDATORILY OR VOLUNTARILY?
INFORMATION REGARDING MANDATORY REGISTRATION:
You will be required to be registered after the VAT law is in force, 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:
- Your turnover was more than 375,000 in the last 12 months
- You expect that your turnover will be more than AED 375,000 in the next 30 days.
INFORMATION REGARDING VOLUNTARY REGISTRATION:
If you are not required to register, you will be eligible to apply for voluntary registration when the VAT law is in force if:
- Either your turnover or expenses (which would be subject to VAT) were more than AED 187,500 in the last 12 months; or
- You expect that either your turnover or expenses (which would be subject to VAT) will be more than AED 187,500 in the next 30 days.
ARE YOU ALSO APPLYING TO CREATE OR JOIN A TAX GROUP?
You can create a Tax group (VAT group) between two or more legal persons (each of which must be resident in the UAE) that are associated, and which meet specific related parties (and control) criteria. Please note that the Executive Regulations have not yet been released and these regulations are expected to provide greater clarity on the conditions for application for registration as a Tax Group.
DO YOU HOLD A TRADE LICENSE IN THE UAE?
If yes, you will be required to provide information about your trade license, otherwise there will be no requirement to provide additional information. If you do not hold a trade license then you can click on no and move forward.
YOU WILL NEED:
- Name of UAE legal entity and trade name (if applicable) in English and Arabic (Please note that you must provide the legal name of the entity in Arabic and English. You may need to seek the assistance of a recognized translator for this);
- Select the name of the authority that issued the Trade License;
- Trade License number;
- Select Trade License expiry date (dd/mm/yyyy);
- Upload scanned copy(ies) of Trade License;
- Upload a copy of the Certificate of Incorporation.
DETAILS ABOUT THE OWNER:
- If the owner is a legal person:
Name of Owner in English and Arabic (Please include details of owners as indicated in the Trade License. Please note that you must provide the legal name of the entity in Arabic and English. You may need to seek the assistance of a recognized translator for this);
- If the owner is a natural person:
- Name of Owner in English and Arabic (Please include details of owners as indicated in the Trade License. Please note that you must provide the legal name of the entity in Arabic and English. You may need to seek the assistance of a recognized translator for this;
- Is the owner resident of the UAE? (If yes, Emirates ID details and scanned copy(ies) of the Emirates ID of the owner); and
- Passport copy details and scanned copy(ies) of the passport of the owner.
If you are not a resident then you can proceed with ticking the box that states not a resident of the UAE.
DETAILS ABOUT THE MANAGER:
YOU WILL NEED:
- Name of manager in English and Arabic (Please include details of the manager as indicated in the Trade License. Please note that you must provide the legal name of the entity in Arabic and English.
- Is the manager resident of the UAE? If yes, Emirates ID details and scanned copy of the Emirates ID of the manager;
- Passport copy details and scanned copy of the passport of the manager.
BUSINESS CONTACT DETAILS:
Details about building name and number, street, city, emirate, P.O. Box, and phone number. Provide details of the place where most of the day-to-day activities of the business are carried out:
- Details about IBAN, bank name, branch name / location of the bank and account holder’s name.
The bank account provided here can be a UAE bank account or a foreign bank account.
SENIOR MANAGEMENT RELATIONSHIPS:
Are you, or any of the directors or partners of the applicant, currently involved in, or in the past 5 years been involved in, any other business resident in the UAE, either individually or as a director or partner in that business?
- Partner / Director details, including passport copy and Emirates ID of partner / director.
- Details of business with which relationship exists:
- Enter the legal name of the business the relationship is (or was) with
- Is the business still trading?
- Enter TRN (if available)
- Upload scanned copies of Trade License(s)
If this is not applicable then please proceed to the next section.
ABOUT THE VAT REGISTRATION:
Select the primary activity of the business:
- Last 12 months turnover figure along with expected turnover in next 30 days (in AED)
- Upload scanned copy(ies) of documentary proof. The FTA has also published a Turnover declaration form that can be used for VAT registration if the business does not have Audited Financial Statements.
- Expected values of imports and exports from each GCC member state
- Whether you expect to deal with GCC suppliers or customers. GCC activities (If you are registered for VAT in any GCC member states and/or if you import from or export to GCC member states, then please provide the following information).
- Name of the GCC Member State
- Enter TRN (if available)
- Estimated value of imports (AED per year)
- Estimated value of exports (AED per year)
• Details of Customs Authority Registration, if applicable (including scanned copy(ies) of Customs number issued by Customs department);
• Whether applying for an exception from registration under VAT;
• Passport copy, Emirates ID copy, authorization document of the authorized signatory.
Once all the above steps have been completed you need to submit this to the FTA. Once submitted it will open a page that shows all the details that have been filled in by the applicant so that it can be reviewed before the final submission of the VAT Application to the Federal Tax Authority.
Once filed, it can take up to 20 business days to acquire a Tax Registration number of the Federal Tax Authority may request for additional information if needed.
April 27, 2020