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What is VAT registration?
On January 1, 2018, Value Added Tax (VAT) was implemented in the United Arab Emirates. VAT is charged at a rate of 5%. VAT will bring in new revenue for the UAE, which will be put to good use in the delivery of public services. The process of registering for VAT in Abu Dhabi is easy.
It will also assist the government to achieve its goal of reducing its dependence on oil and other hydrocarbons as a revenue source.
What is the requirement for VAT in Abu Dhabi?
- If the value of taxable supply and imports in the last 12 months surpassed or is anticipated to exceed in the next 30 days, the threshold for mandatory VAT registration for UAE-resident enterprises, they must do so.
- AED 375,000 is the minimum amount of money required to register.
- In order to make taxable supplies in the UAE, non-UAE-resident companies must additionally register for VAT.
- when no other person is compelled to pay the due tax on these supplies in the UAE, regardless of the value of its taxable goods and services.
- An application for VAT registration must be submitted to the FTA within 30 days of the date on which the person is obligated to register.
Where to register and procedure?
- Log in to the website.
- Sign up for an FTA e-Services account and activate it on the FTA’s website.
- The e-Services account dashboard can be accessed by clicking here.
- Click on “Add New Taxable Person”.
- Click on “Register for VAT”.
- Complete the registration process.
Documents Required
- Valid Trade Licence / Business Licence.
- Passport/Emirates ID of the authorized signatory.
- Proof of authorization for the authorized signatory.
- Invoices, purchase orders, title deeds, and leasing agreements that are signed and stamped by the authorized signatory on the entity’s printed letterhead, as well as accompanying financial papers.
- When requesting registration for a federal or local government entity, a copy of the act creating the entity must be provided.
How to cancel the VAT registration?
Following are the conditions to cancel the Vat registration
- Stop making taxable supplies; or continue to make taxable supplies but the value of the previous 12 months’ worth of goods is less than the Voluntary Registration Threshold.
- Even though they continue to make taxable supplies, the value of such goods in the preceding year was below the Minimum Registration Threshold.
- If you were enrolled on a voluntary basis, it has been 12 months since the date of your registration.
Procedure to cancel
- Click on the “De-Register” button next to VAT registration on the dashboard.
- The application for de-registration includes a list of taxable persons.
- Deregistration should have a good reason and a deadline.
- Select the categories for deregistration.
- To submit all supporting documentation, click the ‘Choose Files’ option and choose all of the necessary files.
- Additional documentation may be requested by FTA.
- Before submitting the application, double-check that the signature and declaration sections have been allowed by the proper parties.
- Click the “Submit” button after you’ve finished the above.
Where to update if you want to change the contact details or bank details etc?
- Select ‘Edit’ or ‘Amendment’ from the ‘VAT Box’ under the Dashboard page to make changes.
- Whenever possible, you’ll be able to edit or add information to any fields that are already filled up.
- You can use the ‘Edit’ option if you need to make changes to your personal information in the sections below.
- There is no need for FTA permission for updation.
