VAT Registration for Abu Dhabi

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 for 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. Here is how to complete VAT registration

Step 1 – Decide your VAT category for registration

The thresholds to register for VAT are based on the value of businesses’ taxable supplies. Below are some of the options available for a person in order to register for VAT.

  • Mandatory registration

A business must register for VAT if the total value of its taxable supplies and imports within the UAE exceeds the mandatory registration threshold of AED 375,000

  • Voluntary registration

A business can voluntarily register for VAT if the total value of its taxable supplies and its 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 tax group or as an individual

As per to the Executive Regulations, companies 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. The conditions to register under a tax group are as follows

  • Businesses are is 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 UAE can help ensure all the procedures of VAT registration are done accurately for approval by FTA. For registration of VAT, a taxable person has to furnish below-mentioned information to a VAT expert in UAE;

Details of the applicant

Supply the details of the person who is operating the business. whether he is an individual or a legal person or a natural person. All the options are available should be supplied to the tax experts.

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. It is also required for the applicant 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 also has furnished details regarding the legal entity’s business activity. This section requires to submit including the evidence that justifies declared turnover value.

Communication preference and authorized signatories

Furnish the details regarding authorized signatories and business communication preference 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 they can help you register for VAT in Abu Dhabi. We give necessary VAT related information and also provide full-fledged assistance with regards to VAT in Abu Dhabi; we are right here to make VAT registration a smoother experience for businesses. Call us now for further consultation.