Deadline for VAT Registration in UAE Announced

Posted on Nov 19, 2017

Deadline for VAT Registration in UAE Announced

The Federal Tax Authority (FTA) of UAE has announced that it has opened its online portal to allow for taxpayers to register for VAT purposes. The FTA has also determined the deadlines for the application for VAT registration based on business turnover. For larger companies VAT registration was required by 31 October 2017 as it has already got due, and as such businesses should immediately consider the timeline requirement given their turnover profile and the other registration requirements.

The UAE’s Federal Tax Authority (FTA) has invited all companies in the country to register for value-added tax (VAT) before January 1, 2018, following the completion of the first phase of the registration process.

The VAT registration procedure is free of charge and can be completed online via the e-services portal on the FTA website.

To register, it is mandatory for the businesses to provide the following information: Applicant details, including entity and activity details, trade licenses and manager’s details. Contact information is also required, as well as the documents of the authorized signatory, including scanned copies of their Emirates ID and passport.

Tax experts have warned that VAT comes at a cost and exposure to penalty if not administered correctly. Companies and traders who are consistently in a position of recovering VAT from the government will need to factor in the potential negative cash flow impacts that their business will be exposed to as well as the likely additional scrutiny their books and records will be subject to by the tax authorities.

The UAE’s Federal Tax Authority (FTA) announced that online registration for Value-Added Tax (VAT) is now open through the Authority’s website ahead of the tax’s implementation from January 1, 2018. Taxable supplies include all supplies that are made in the UAE, whether subject to 5 percent or zero-rated tax. All goods or services imported from abroad are considered taxable supplies. The law defines a “supply” as any supply of goods or services in the UAE for consideration by any person in the course of conducting business.

The UAE Federal Tax Authority (FTA) has also announced the deadlines for VAT registration in the UAE. This has been summarized below:

  • Businesses with a turnover exceeding AED 150m should apply for registration before October 31, 2017.
  • usinesses with a turnover exceeding AED 10m should apply for registration before November 30, 2017.  
  • All other business entities should submit their application before December 04, 2017 so as to minimize the risk of not being registered in time for VAT go-live.

Individual businesses can and are encouraged to start the registration as soon as possible. Should you require any assistance in this regard, please do not hesitate to contact your local tax team.

 

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