Overview of VAT Enrollment in the United Arab Emirates

The government recognises a business that is registered under the VAT law as a supplier of goods and services, and that business is allowed to charge customers VAT and remit that money back to the government.

Companies that have registered for VAT may only engage in the following:
On the taxable supply of goods and services, apply VAT.
Claim the input tax credit for the VAT they paid on their purchases; the credit will be subtracted from the sales tax liability.
VAT payment to the government and periodic VAT return filing.

In addition to the previously mentioned requirements, all registered businesses are required to ensure that their business reporting structure complies with the compliance requirements. These requirements include keeping accurate and current records of all incoming and outgoing supplies, tax invoices, credit notes, debit notes, and books of accounts, among other things.

Thus, learning the basics of VAT will be crucial to your preparation for it, and registering for VAT will be the first step in bringing your company into compliance with the new tax laws.

Who needs to file a VAT registration?
Are all companies have to register for VAT? No, only companies that surpass the specified yearly total revenue criteria must register for VAT. A business will either be required to register based on the registration threshold or have the choice to apply for registration or seek exemption from VAT registration.

Accordingly, the following categories of VAT registration exist in the United Arab Emirates:
VAT Registration Is Required
Registration for VAT is on a voluntary basis
Not Needed to Register for VAT
UAE deadlines for VAT registration

The Federal Tax Authority (FTA) is accepting applications for VAT registration in preparation for the introduction of VAT in the United Arab Emirates on January 1, 2018. The FTA has made its site available so that companies can register online. Businesses can be ready to charge VAT on January 1, 2018, having prepared far in advance thanks to the early request for online registration. Depending on the business’s revenue, the FTA portal’s UAE VAT registration is completed in stages.
Calculating VAT Turnover for UAE Registration

Businesses may apply for VAT registration in the UAE VAT if their yearly revenue surpasses both the voluntary registration threshold of AED 187,500 and the required registration threshold of AED 375,000. As a result, it is critical for companies to comprehend how to compute the VAT turnover for UAE registration as well as what kinds of supplies are taken into account when determining the annual supplies turnover.

How to Register a VAT in the United Arab Emirates

Businesses in the United Arab Emirates with annual revenue above AED 375,000 are required to register for VAT registration. The Federal Tax Authority (FTA) has established its online portal for VAT registration in order to make it easier for firms to register. The FTA has already stated the timeframes based on business turnover, and registration will be done gradually. Businesses must not only ascertain their requirement to register for VAT, but also comprehend the steps involved in the application process and the amount of information needed to finish the online registration procedure.
This is due to the fact that knowing what information is needed and how to finish the online VAT registration procedure will enable you to prepare well in advance of applying for or initiating the process. Consequently, the registration procedure can be finished quickly and without needless delays brought on by providing inaccurate information, which may even result in the registration application being rejected.

Opening an Online Account
Access your e-Service Account and log in to the VAT Registration Form. The online VAT registration form has eight sections, as indicated below, where information about the applicant must be provided in order to complete the VAT registration process.
Information about the candidate
Details of contact
banking information
Business ties regarding the VAT registration statement
Examine and send in
Registration of VAT Groups
Unless otherwise specified in the UAE Executive Regulation, a person conducting business is not permitted to possess more than one Tax Registration Number (TRN) in the context of UAE VAT. Therefore, only one VAT registration is necessary, even if you operate through branches in multiple Emirate. In keeping with the same goal, two or more individuals who are connected to or involved with the enterprises may apply for VAT group registration.