UAE has implemented VAT on all businesses in all emirates including Abu Dhabi. Like in all other emirates, businesses in Abu Dhabi also now have to observe stringent VAT regulatory and statutory compliance following UAE VAT implementation, including getting VAT registration
It also helps the government to reduce its dependence on oil and other hydrocarbons as a source of revenue. Before proceeding with VAT registration in Abu Dhabi, the applicant should consider various aspects such as eligibility for mandatory or voluntary registration and individual or tax group registration.
How to Complete VAT Registration in Abu Dhabi
Step 1: Decide your VAT Category for Registration
The VAT registration threshold is based on the businesses’ taxable supplies value. Below are some of the options available for a person in order to register for VAT.
Mandatory Registration
Businesses in Abu Dhabi must register for VAT if the total value of their taxable supplies and imports within the UAE exceeds the mandatory registration threshold of AED 375,000
Voluntary Registration
Businesses in Abudhabi can voluntarily register for VAT if the total value of their taxable supplies and imports within the UAE exceeds the threshold limit of AED 187,500.
If you want to know more about the threshold limits, you can seek the advice of a tax expert.
Step 2: Determine Whether to Register as a Tax Group or as an Individual
As per the Executive Regulations, companies in Abu Dhabi are able to register as a tax group or as an individual. The taxable person has to determine which is best for its specific circumstances.
VAT Group Registration
VAT group registration is a tax registration process where two or more business parties form a group for VAT purposes.
Conditions for VAT Registration:
The conditions to register under a tax group are as follows
- Businesses should be legally established in UAE
- The members of the tax group refer are not separated on an economic, financial or regulatory level, where one can control another either by law or through the action of shares.
Individual VAT Registration
Any person can register for tax whose taxable supplies cross the threshold limit as per UAE VAT law.
Step 3: Submit your Details to Tax Experts for VAT Registration in Abu Dhabi
Tax agents in Abu Dhabi can ensure that the VAT registration procedures are done accurately for FTA approval. For VAT registration, a taxable person has to furnish the below-mentioned information to a VAT expert in UAE;
Details of the Applicant
Supply the details of the person who is operating the business.
Business Information of the Applicant
Applicant should provide all information to tax agents in UAE including the business type, trade license from authorized issuing body and other relevant details. Applicants are also required to provide the registered tradename of the applicant.
Contact Details
The applicant should also provide the contact details of the business. If a business has multiple addresses, then the details must be provided as per the place where the majority of the legal related to the business is conducted.
Bank Details of the Business for VAT
When furnishing the bank details, the bank account should be from an established bank in UAE, and the account name should match the legal entity name to be registered with the Federal Tax Authority.
Business Affiliations
If the applicant is involved in any other business in the UAE for the past five years, you will be required to submit documentation that reflects the role of said business
Description of the Activities Conducted Business
The applicant should also provide furnished details regarding the legal entity’s business activity. This section requires submitting the evidence that justifies the declared turnover value.
Communication Preference and Authorized Signatories
Furnish the details regarding authorized signatories and business communication preferences including preferred language and mode of communication.
VAT Registration Services in Abu Dhabi
For a detailed guide on how to go about VAT registration, you can seek the help of our experts as who can help you register for VAT in Abu Dhabi. We give necessary VAT-related information and also provide full-fledged assistance with regard to VAT in Abu Dhabi; we are right here to make VAT registration UAE a smoother experience for businesses. Call us now for further consultation.