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VAT Registration - UAE
United Arab Emirates has always offered great deals of monetary and investment opportunities to the world. UAE is an admired key investment axis for the avid entrepreneurs from all over the world. It is growing and progressing in multiple fronts and headed to implausible accomplishments. In this scenario, Value Added Tax (VAT) has been implemented in the UAE in 2018 as in the long run it will benefit everyone who lives here.
What is VAT?
VAT (Value Added Tax) is an indirect tax initially with a very nominal rate i.e. 5%, applicable for most of the goods and businesses. Though UAE government has exempted food items, education and healthcare services from VAT but people can notice a little rise in their cost of living. However, it needs to be considered that VAT will not strain the wallets much but allows the high living standards not only to remain high but improving.
To comply with VAT and related legal requirements businesses need to make changes in their existing processes. Companies have to ensure that their accounts or records are well managed according to the new VAT regulations implemented by the government effective from 1st Jan 2018.
If a business in UAE exceeding AED 375,000 with the supplies and imports of goods/services subject to tax then it must register for VAT as per the Federal Tax Authority. As per FTA, all businesses must ensure the recording of their financial transactions, apart from that VAT registration requirements have done and ledgers are updated in time to avoid penalties.
VAT Registration Process
To complete the registration, the service is available 24/7 through the FTA’s website. Businesses should visit the website www.tax.gov.ae, select the e-Services portal, sign up, and create an account. After the email verification, one can log in and register the business.
The FTA has advised businesses to provide precise information and fill up the application form accurately. Scanned documents including the trade/business license, passport/Emirates ID of the Manager/Owner of the business must be attached to complete the registration process.
The passport/Emirates ID of the authorized signatory must be submitted if the signatory is not the manager him/herself along with the proof of authorization including articles of association, power of attorney attested by notary etc.