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A Complete Guide for VAT Registration on UAE FTA (Federal Tax Authority)

Now we will discuss how to file a VAT online, and it will help you to register your company first and of course to move forward how to fill the form on how to submit your return. That is what we are going to discuss now already we have some basic knowledge about that like if I'm a company what is the threshold for the VAT evaluation is that for me. 

That is a question what I know, but I should have that's a critical point if your annual turnover is exceeding three hundred and seventy-five thousand rooms. Then you have to register mandatory for the filing of your VAT returns you can all voluntarily even for the VAT registration. If your turnover is at least a hundred and it is 7,500 their humps how this figure will be calculated you have to see the 12-month range of your ear total value of the supplies in subsequent thirty days. 

When you of exempted supply will not be considered in terms of the calculation of your that turnover, first of all, it's very important for us to know that what a taxable supply is. So taxable supply has certain items inside standard rated supply, zero-rated supply, and reverses charges imported goods.

How to register for the VAT 

That is the central interesting learning part so that you will go on the website of FTA. First-time registration will be almost the same way that you should have a copy of trade license should have and ideally. 

That should be done by the authorized signatory passport copy immerse ID shareholder documents and some other documents that are required time to time on the case to case basis. Once all your documents have been submitting, and there will be an approval, and you will be receiving a tax registration number. 

It's a straightforward process should not take more than fifteen minutes in total as a precaution. It should be filled by the one who understands who is a legal responsibility and authorized signatory. Because any wrong VAT filing will create complications in future before you fill the form you have to make sure certain essential things. 

Are you registering mandatory or it is ordered to be recorded? Are you applying for a single company or it's for a group of companies. When you have a related party or a holding structure, they have required documents like trade license certificate of incorporation and letter of authorization for official signatory. 

Then you have passport copies Emirates IDs and some related legal stuff that you have to have. While you will be required to have when you are going to fill this while you are registering for the word system we'll ask for some information about your business activity.

So you have to describe what is your business your last twelve months turnover figures what will be your projected future turnover. That is also a significant expected value of important exports if you are dealing with any critical commodities. 

Are you dealing with the local suppliers within your Emmerich's or are you interacting with Gulf economic console countries like Saudi Arabia, Oman. That's a critical consideration of course if you are imported or exporter you will have a customs registration number that also should be with you.

Here we can see how the first time and you will open the website you will go to each service. So you will see this kind of interface this is for the federal tax authority, you have one heading here create a user account or log in to use an account. 

So if you are making first time, of course, you have to create an account but if you have already a username and password so you can enter in the system through using this window when you click on create user account it will open a window. It will start for your email address so ideally the email address that you have given in your Emirates ID or at the time of registration. So that will be better to provide here passwords you will confirm the password for security verification you will select the CAPTCHA and select security questions.

 So in case if you forget, later you can recover your account by using the security questions. You can have a hand also so in any case if you ignore the security question. So there might be a hint that can recall you for the resetting, and in the last, you have to agree with the terms and conditions.

Once you are all done you have to click the sign now once you click here on signup, you will receive an automatic email. This email will come to your given email address and what you need to do is you have to verify. So that step will make sure that you are the right authentic user and once you ascertain you are going to be active. 

You can see you will have received a message and thank you very much for creating an account. Please click here to verify your email so once you create your account successfully. You'll ascertain then you can go to login and you will give your email and password. 

You will give the capture and then you are going to login in the system so once you are logged in. You will see this kind of interface it will tell you or register for the VAT and the register for the excise tax

Once we click this register for VAT, we will see our form will be open in front of us, and we will see some tabs like about the applicant detail of the applicant, contacts banking details, business relationship about the word you have declaration and then review and submit. 

So these are specific tabs that will see on your screen about the applicant on which basis you are applying for registration. So you are what kind of nature of the company you are you are a joint-stock company or what. So you have to define where you hold that trade license in UAE. 

So you have to say yes or no are you applying to create or join a VAT group so if you are a single filer or you are going to fight on behalf of the group. You have to choose accordingly, or you're just mandatory or voluntary. You have to select if you are based on your turnover you will decide this is necessary or it will be optional. 

If you feel any difficulty in this process, there is always assistance is required, and there is a user guide. Once your form is filled, you should check one time we all and then you have to submit FTA is going to receive the to review this and then they will notify you about your tax registration number that's always a common concern that if you are the owner of four or five companies like in the United Arab Emirates

That is a trend that generally one person has three companies' five companies, and sometimes you haven't become new transactions. 

How you can handle such value so in the system we have a perfect option that is you can group your companies and system will treat it as one. 

What will be the fact all this dropping system is, of course, going to ATO as one entity and what will be the result of that supplies made between the related party companies. 

Who will be disregarded but if this word group is dealing with any group outside of course that will be the part of the calculations that have been shown in this diagram. 

If you are a growth company, a B and C you are dealing with each other. That is no implication but when you are talking about anything outside your group then of course.

When there is a sale, there will be about so you can see this is a very systematic and organized filing. Which requires just we should not take more than fifteen minutes in terms of actual filings. You can do it online and what would be the possible deadlines the due date will be 28 days of the end of the return period.

 Where due date falls on weekends or national holidays deadlines will be extended naturally to the next working days of course if you will not submit your return on time so you can expect some penalties. 

That is very important to keep the records of your accounts for tax compliance purposes. So any kind of sale in wise purchase in why is your general ledger your accounts that you have to keep in your office for ready for the review of any tax audit from FTA

Any kind of additional documents that you should also keep case to case basis in your premises ready for the audit the period for the intention of the papers should nor should be at least five years, of course, five years. 

You will keep the hardcopy and but in soft copy; it will always be available so what you need to save also quality and vices and alternative documents related to receiving the good in services quality of tax credit notes. 

All tax invoices and the alternative document issued all tax credit notes and alternative reports he showed he would keep it in here records moving forward the history of all supplies of the imported goods and services exported goods and services wooden services. 

Those have already been disposed of wooden services for which the input tax was not being deducted but did you want taxable supplies which had after any error or correction and adjustments VAT deductible for any import and export supplies. 

So we have to simplify it the tax invoices. It should have some compulsory stuff into what are those tax invoice in a prominent place because if we see the document, we can see this is a tax invoice should have a standard name address tax with a number of the supplier date of issue description of the right total amount payable total but chargeable.

These are the components that we need to see on a tax invoice there are penalties of course with time. It is going to be the clearer case to case basis how much penalties has been there should be a penalty table that will sew. 

So we can refer to that for Keisuke spaces there will be some strict penalties on tax evasion. So any point of time if someone is going to provide fold information and data and our person deliberately conceals and destroy documents or other material. 

So you the person are of course going to face legal complications by the FTA. Generally, it can be up to five times, or it can be imprisonment or based on the sensitivity of the documents and nature of the case itself. We can see that the tax return online filing, it has some easy steps and once the filing actual filing will come. We will be more clear about it you know how to do it by yourself keeping yourself online.

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