The United Arab Emirates (UAE) implemented Value Added Tax (VAT) in 2018. Businesses that meet specific criteria are required or entitled to register for VAT. This article provides a comprehensive guide on the VAT registration process in the UAE.

Eligibility for VAT Registration:

• Mandatory Registration: Businesses exceeding AED 375,000 in taxable supplies over the last 12 months are obligated to register for VAT.
• Voluntary Registration: Businesses with taxable supplies and imports exceeding AED 187,500 in the last 12 months or expected to exceed in the next 30 days can choose to register voluntarily.

Before you begin, please note:

• Ensure your business meets the registration criteria as outlined by the Federal Tax Authority (FTA).
• Gather all the necessary documents and information before starting the application process. These supporting documents that you may be required to have include trade licences, financial statements.
• Create an account on the EmaraTax portal if you haven’t already and register as a Taxable Person.

Here’s a step-by-step guide on how to register for VAT in your eServices Account:

• Login to EmaraTax Portal

Go to the official EmaraTax website: www.eservices.tax.gov.ae and proceed to log in using your credentials.

These credentials typically include a username and password. Alternatively, you can use UAE Pass for authentication if you have it set up.

• Select your desired Taxable Person:

Selecting an Existing Entity: If you’re dealing with an entity that is already registered with the FTA, you can select it from your list of taxable persons. Click ‘View’ to open the Taxable Person Dashboard.

• Accessing the Taxable Person Dashboard:

Clicking “view” on the taxable person profile redirects you to their dedicated dashboard within the FTA e-Services system. This dashboard serves as a central hub for managing various aspects related to the taxable person’s VAT compliance. Spot the ‘Registration Overview Section.

• Navigate to Registration Overview Section:

• This section provides a summary of the taxable person’s registration details.

From this dashboard, locate the VAT section under the ‘Registration Overview’ and select ‘Register’ on the VAT tile.

• Review the Instructions and Guidelines Page

This page serves as a crucial resource to help you navigate the registration smoothly and avoid any potential delays or errors. It typically aims to simplify the VAT registration process by providing clear and concise information on eligibility, documentation, application procedures, and timelines, all aligned with the regulations and requirements set forth by the FTA.

You must read and confirm that you understand these details by checking the box.

Then click on Start’ to begin the application process smoothly.

• Complete the VAT Registration Form:

This online form is divided into 9 major sections with a progress bar. The current section is highlighted in blue as the completed sections are highlighted in green. To advance sections, all mandatory (*) current fields must be completed correctly. Non-mandatory fields are marked as ‘Optional’.

Guarantee a smooth registration experience by saving your progress regularly.

To ensure seamless progress during this application progress: Click the designated ‘Save as Draft” button to avoid losing your information and repeating the steps. Remember, the system automatically logs you out after a period of inactivity exceeding 10 minutes.

Please see these sections outlined below:

• Section 1: Entity Details

Enter the details of the business to be registered including:

1. The Entity type: From the options provided, select the legal structure of your business, such as Sole Establishment, Limited Liability Company, etc.
2. Date of Incorporation: Enter the date your business was officially registered.
3. Upload a certificate of incorporation: Provide a scanned copy of your business registration certificate issued by the relevant authorities and ensure it is in PDF, DOC, or DOCX type.
4. Applying to create or join a Tax Group: If you’re applying to form a new Tax Group or join an existing one, select the appropriate option and provide details of the other group members.

What is a Tax Group?

A Tax Group allows multiple legally independent businesses under the same control to be treated as a single entity for VAT purposes. This simplifies VAT compliance and reporting for the group.
Related parties could include subsidiaries, parent companies, joint ventures, or individuals with significant control over your business.

• Section 2:

(A) Identification Details

1. Enter your Main Trade License details, including the license number, issuing authority, license issue date, trade license expiry date, Legal Name in English & Arabic, as well as the Trade Name in English &Arabic
2. Upload a scanned copy of your Trade License/Business License: Ensure the document is in PDF, DOC, or DOCX format and under 15MB.

B) Business Activities

• Briefly describe your primary business activities –

1. Main Industry: The broad category your business falls under (e.g., Retail Trade)
2. Main Group: A more specific category within the industry (e.g., Food Retail)
3. Sub-Group: Further narrows down your activity (e.g., Grocery Stores)
4. Activity: The specific activity your business performs (e.g., Sale of Groceries)
5. Activity Code: A unique code assigned to your specific activity by the FTA

• Ownership: Indicate whether any owner holds more than 25% ownership by selecting “Yes” or “No.”
• Branch Details: If applicable, provide details for any branches your business operates within the UAE.
• Sole Establishment Details – In case you have a Sole Establishment
• Property Details – Do you own any property?

• Section 3: Eligibility Details

This section determines your obligation to register for VAT.

1. Mandatory Registration: Select this option if your taxable supplies (sales) exceed AED 375,000 within the past 12 months or are expected to exceed this amount in the next 30 days.
2. Voluntary Registration: Choose this option if your taxable supplies are below the mandatory threshold but you still wish to register for VAT. You’ll need to provide a valid justification for voluntary registration.

The image below shows the instructions for the taxable persons who fall under mandatory registration of VAT in the UAE:

This screenshot below shows the details that are required to be gathered for those whose eligibility criteria is ‘Voluntary’ Registration:

• Section 4: Contact Details

1. Provide Business Contact Information including: Country, Building name & number, Street, Area, City, preferred contact information (Mandatory – Mobile and landline number as well email.) and Emirate.
2. (P.O Box) – is optional
3. Additionally, please see this informative notes to adhere to in this section:

• Section 5: Business Relationships

Only relevant if your business belongs to a VAT Group. Provide details of other group members, including their legal names, tax registration numbers, and contact information.

• Section 6: Bank Details

Enter your company’s bank account details, including account holder’s Name, account number, IBAN, bank name, and branch details as well as your resident country.

Additionally upload a scanned copy of a ‘Bank Validation Letter’

• Section 7: Additional Details

This section might be used for additional information specific to your business or as per FTA requirements. Refer to this image below:

• Section 8: Authorized Signatory

1. Designate an authorized representative with their contact details: First and Last Name in English & Arabic, Mobile number & Email ID
2. Upload scanned copies of their Emirates ID and passport (if applicable)

• Section 9: Review and Declaration

Review Information: Before finalizing the registration process, take the time to review all the information you’ve provided for accuracy and completeness. Make any necessary corrections or additions before proceeding.

Carefully review all the information you’ve provided for accuracy and completeness. Make any necessary corrections before submitting the application.

Confirmation: Once you’re satisfied with the information provided, check the declaration box at the bottom go on and submit the application through the EmaraTax portal

Once your VAT registration is approved:

Congratulations! Once the FTA approves your VAT registration application, you will receive confirmation through your e-Service account. Here’s what happens next:

• Receive your VAT Certificate:

You will receive an official VAT registration certificate with your unique Tax registration number (TRN).
This TRN is crucial for issuing VAT invoices, claiming input tax credits, and interacting with the FTA.

2. Update your accounting system:

Integrate your accounting system to handle VAT calculations and record keeping.
This includes recording VAT on sales and purchases, separating taxable and non-taxable transactions, and generating VAT reports.

3. Start issuing VAT invoices:

All taxable supplies made after your effective registration date must include your VRN and the applicable VAT rate.
Ensure your invoices comply with the FTA’s invoicing requirements.

4. File VAT returns:

You are obligated to file periodic VAT returns with the FTA, typically every three months.
These returns report your taxable supplies, input tax, and any payable or refundable VAT.

5. Stay compliant with VAT regulations:

Familiarize yourself with the UAE’s VAT regulations and keep updated on any changes.
Maintain proper records of your VAT transactions for potential audits by the FTA.

Remember, receiving your VAT registration is just the beginning of your VAT compliance journey. Staying informed, maintaining accurate records, and filing timely returns are crucial for avoiding penalties and ensuring smooth business operations.

Additional Points:

You can access the FTA website for VAT guides, training materials, and other resources to help you understand your obligations.
Consider seeking professional assistance from a tax advisor to ensure compliance and navigate complex VAT scenarios.