Introduction to UAE VAT registration
Registration under the VAT law means that the company is recognized by the government as a supplier of goods and services, and is authorized to collect VAT from customers and remit it to the government. Only VAT registered enterprises can perform the following operations:
1. VAT is charged for the supply of taxable goods and services
2. The input tax credit of the purchase will be deducted from the input tax credit, which will be deducted from the sales value-added tax
3. Pay value-added tax to the government
4. Submit VAT returns regularly
In addition to the above, all registered businesses must adjust their business reporting structure according to compliance requirements, such as accurate and updated account books, tax paid documents (such as tax receipts, credit notes, debit notes), all inward supply records, and Need to maintain external supply, etc.
Therefore, understanding the basic knowledge of VAT will be one of the important steps for you to prepare for VAT, and obtaining VAT registration will be the first step for your business to transition to the VAT era.
Who should register for VAT?
Are all companies responsible for registering under VAT? No, only companies that exceed the prescribed annual total turnover threshold can be registered under the value-added tax. According to the registration threshold, the company will be authorized to register, or alternatively, the company can apply for registration or can apply for VAT exemption registration
On this basis, VAT registration in the UAE can be divided into the following categories:
1. Compulsory VAT registration
2. Voluntary VAT registration
3. Exemption from VAT registration
UAE VAT registration deadline
In order to implement VAT in the UAE on January 1, 2018, the Federal Tax Administration (FTA) is inviting applications for VAT registration. FTA has opened its portal to allow companies to register online. The call for online registration in advance enables companies to prepare in advance and prepare to collect value-added tax from January 1, 2018. The UAE VAT registration in the FTA portal is carried out in stages, depending on the business turnover.
Calculation of VAT turnover registered in the UAE
In the UAE VAT, companies whose annual turnover exceeds the mandatory registration threshold of 375,000 dirhams and the voluntary registration threshold of 187,500 dirhams can apply for VAT registration. Therefore, it is important for companies to understand which consumables are considered when calculating the annual consumables turnover rate and how to calculate the VAT turnover rate registered in the UAE.
How to apply for VAT registration in the UAE
In the UAE, companies with a turnover of more than AED 375,000 must apply for VAT registration. To facilitate business registration, the Federal Tax Administration (FTA) has opened its portal for online VAT registration. The FTA has announced a cut-off date based on turnover, and registration will proceed in phases. Although it is important for companies to determine their VAT registration obligations, it is also important for companies to understand how to apply for VAT registration and understand the level of detail required to complete the online registration process.
This is because before applying or starting the online VAT registration process, a good understanding of the types of details required and the steps to complete the online VAT registration will help you prepare in advance. As a result, the registration process can be easily completed, and unnecessary delays caused by providing incorrect details can be avoided, which may even lead to rejection of the registration application.
1. Create an electronic service account
2. Log in to your e-service account
3. VAT registration form: The online VAT registration form contains the following 8 parts, in which detailed information is required to complete the VAT registration
One kind. About the applicant
b. Applicant Information
C. contact details
d. Bank info
e. Business relationship
F. About VAT registration
H. Review and submit