What Are the Key Steps for VAT Registration?

Vat Registration In UAE

Since its introduction in 2018, VAT has been one of the major components of conducting business in the UAE. Each business that qualifies and meets the stipulated criteria must obtain VAT registration to align with the tax regulations. This blog will walk you through the main steps for completing VAT registration in UAE, guiding you through the process and requirements for successful registration.

Key Steps for VAT Registration in the UAE

To register for VAT, one would need to pass through several processes and provide the FTA with information that would be required for the registration. The general procedures used in registration for VAT in the UAE can be summarized as follows:

  1. Create an account on the FTA Portal

First, log on to the Federal Tax Authority’s e-Services and open your account. To do this, enter your email and proceed to create a password. You can then continue with your VAT registration.

  1. Document Preparation

To start any procedure for VAT registration, the following documents need to be prepared and uploaded, namely:

  • Copy of trade license
  • Copies of the passport and Emirates ID of the business owner or the partners
  • A document that shows carrying a business
  • Memorandum of Association
  • Details of the financial transactions and the turnover figures
  • Details of the business bank account

All these would be required in order to facilitate the process of VAT registration.

  1. Filling of the VAT Registration Form

Log in to your FTA account and complete the VAT registration form. These will include:

  • Business Information: Business name, address, and contact details.
  • Turnover Details: Details about the taxable turnover from the last 12 months.
  • Bank Details: Details of your bank account for VAT payments.
  • Tax Group Details: You shall provide details in case you register as part of a tax group.

Ensure the correctness of the information since inaccuracies here may cause delays or rejection.

  1. Submit Your Application to FTA

After you have filled in all the information given, you proceed to check the application for correctness and submit it through the FTA e-Services portal. At the Federal Tax Authority, they shall evaluate your application, and if the details and documents are correct, they shall process your registration.

  1. Get the TRN (Tax Registration Number)

Once your application for VAT registration has been accepted, the FTA shall issue you with a Tax Registration Number. The Tax Registration Number is hereby issued as proof that a business has indeed registered under VAT and shall always be displayed on all the invoices, VAT returns, and other related documents.

  1. VAT Compliance

Following registration, keep to the VAT books. This means that maintaining a document of all the taxable transactions, issuing VAT-compliant invoices, and submitting a timely return would be the obligation to stay legal. Failure to do so will incur a penalty and fine.

Conclusion

Registration for VAT in UAE is an important step in keeping oneself within the book of tax law and addition to the country’s economic development. Even though it has many steps, getting to know how it would be is easier. For a smooth and efficient VAT registration, you may consider the consulting of professionals such as RBS Auditors. Our expertise in these areas will keep your business on the right footing in the very first place, thus saving costly mistakes and creating a compliant future foundation.

Where Can I Find Information on VAT Registration?

Vat Registration In UAE

UAE VAT: understanding the registration requirements. Introduction The Introduction of VAT in the UAE means that businesses need to be well-informed about VAT registration requirements for the latter’s taxation in the country. Whether you are a budding entrepreneur or a leading business person, it is essential to look for the right information about VAT registration in order to avoid penalties and smoothen your operations. This blog post will update you with the resources and necessary steps required to be taken while making a VAT registration in the UAE.

When to Register for VAT?

UAE requires a business to register for VAT if the business generates more than AED 375,000 in annual revenue. Businesses that generate more than AED 187,500 in revenues or costs can also opt for voluntary VAT registration.

There are two types of VAT registration in the UAE:

  • Mandatory Registration: All businesses must register if their taxable supplies exceed the statutory threshold.
  • Voluntary Registration: Firms are granted voluntary registration if they meet less revenue or expenditure thresholds.

 

Where to find reliable VAT registration information?

  1. Federal Tax Authority Website

Direct Sources: This is a direct source to get accurate information related to VAT registration in the United Arab Emirates. This website contains guidelines, registration forms, and FAQs that help business operations through the VAT system. The FTA website contains an easy-to-follow, step-by-step process on how the process of completing online registration is done so that businesses may easily present documents with data as well.

Key pages on the FTA’s website are:

  • Guidance to VAT Registration: explains who has to register and how to do so
  • e-Services Portal: enables VAT-registered business to register online, file returns online, and check on the status of applications .
  • FAQs: a page on which the most frequently asked VAT questions can be found.
  1. Obtain expert advice through a VAT Adviser

While the FTA website is a good source, many businesses opt for the better advice of VAT consultants, ensuring all duties are paid correctly and in full compliance. There are VAT consultants like RBS Auditors in UAE that give direct support to businesses to make VAT registration easy and simple to follow. 

  • Documentation preparation: Documentation such as trade licenses and financial statements, among others, are also ready for the filing process.
  • Registration Filing: Submitting the application with FTA through its portal.
  • Compliance Monitoring: Ensuring the company’s VAT compliance thus, the VAT return filings are correct
  1. Government Portals and Official Publications

Apart from the FTA, other portals provided by the UAE government upgrade information on VAT. These include the Ministry of Finance and Chambers of Commerce. In such portals, views of law updates, changes in VAT guidelines, and effects of VAT among various sectors are also given.

 4. Registration through Workshops and Seminars for VAT

Some of the ways through which one can source this handy information include attending VAT-oriented workshops and seminars organized by local business councils or tax advisory firms. These sessions typically comprise industry experts delivering precise analysis of VAT regulations, common problems, and how to put businesses back in line.

Conclusion

Precise and timely VAT registration in the UAE is pertinent to ensure compliance by businesses so as to avoid heavy fines. Various resources, such as the Federal Tax Authority website, VAT workshops, and meetings with firms such as RBS Auditors, provide complete details about making it easier to register. RBS Auditors offers bespoke services to business owners to ensure that VAT registration and its following post-registration compliance run smoothly.

Keep yourself updated about VAT requirements and choose the right partner to ensure your business thrives in new tax realities in the UAE.

 

“Engage Approved and Licensed Auditors Only!”

DMCC Free Zone Approved Auditor

Employing an approved auditor is critical for businesses of all sizes and industries. Approved auditors are professionals certified and authorized by regulatory bodies to perform audits and issue reports. At RBS Auditing, you will find a DSO and DMCC Free Zone Approved Auditor only! 

DMCC Free Zone Approved Auditor
DMCC Free Zone Approved Auditor

Here are some reasons why hiring an approved auditor is essential:

 

  1. Compliance: Approved auditors ensure businesses comply with regulatory requirements and accounting standards. They can help identify any non-compliance issues and provide recommendations to mitigate them.

 

  1. Credibility: Audit reports issued by approved auditors carry more weight and credibility in the eyes of stakeholders, including investors, creditors, and regulatory bodies.

 

  1. Assurance: Approved auditors assure stakeholders that the financial statements are accurate and reliable. It can help improve investor confidence and enhance the reputation of the business.

 

  1. Risk Management: Approved auditors can help identify and mitigate financial, operational, and compliance risks. It can help businesses avoid potential losses and improve overall risk management.

 

  1. Expertise: Approved auditors are trained professionals with in-depth accounting and auditing standards knowledge. They can provide valuable insights and advice to businesses on financial management, internal controls, and related matters.

 

Thus, hiring an approved auditor from firms like RBS Auditing is essential for businesses that want to ensure compliance, improve credibility, manage risks, and benefit from the expertise of trained professionals. Read on to know why you should count on us!

 

Reasons Why Auditors of RBS Auditing Better than the Competitors.

 

RBS Auditing is a reputable and reliable auditing firm providing auditing services to businesses in Dubai for several years. We are a DMCC, and DSO Free Zone Approved Auditor, which means that we have met the stringent requirements of these regulatory bodies to provide auditing services in these zones. 

 

Here are some reasons why our auditors are better than other service providers:

 

Certification: 

 

RBS Auditing’s auditors are DMCC and DSO Free Zone-approved auditors, which means we have the required certification and expertise to conduct audits in these zones. This certification ensures we meet the highest standards of professionalism, ethics, and quality in their auditing services.

 

Experience: 

 

RBS Auditing’s auditors have extensive experience auditing businesses of all sizes and industries. We have a deep understanding of regulatory requirements and accounting standards, which enables us to provide accurate and reliable audit reports.

 

Timely Service: 

 

RBS Auditing’s auditors provide convenient auditing services, ensuring clients receive their reports promptly. It enables firms to make informed judgments based on accurate and up-to-date financial information.

 

Competitive Pricing: 

 

RBS Auditing’s auditors provide competitive pricing for their auditing services, ensuring that businesses of all sizes can afford them.

 

So, if you are looking for a reliable auditing firm in Dubai, contact RBS Auditing today. We also provide other services, such as VAT Registration in UAE!

Maximizing Your Business Potential with RBS Auditing

Jafza Offshore Company Formation
Welcome to RBS Auditing, your one-stop-shop for all your business needs. We are aleading firm specializing in Jafza offshore company formation, offshore agent services in Jafza, and VAT registration in the UAE. Our aim is to provide our clients with unparalleled service and expert advice to help them achieve their business goals.

At RBS Auditing, we understand the importance of having a strong and efficient business infrastructure. That’s why we offer a wide range of products and services designed to support your business and help you stay ahead of the competition.

Products and Services :
1) Jafza Offshore Company Formation:
Are you looking to establish a business in the UAE? Look no further than RBS Auditing. Our experienced team will guide you through the process of Jafza Offshore Company Formation, one of the world’s leading free zones. With our assistance, you can take advantage of the many benefits that Jafza has to offer, such
as 100% foreign ownership, zero taxes, and easy access to markets in the Middle East, Asia, and Africa.
2) Offshore Agent Services in Jafza:
Need help managing your Jafza offshore company? RBS Auditing provides offshore agent in jafza to ensure that your business runs smoothly and efficiently. Our team of experts will handle all the administrative and regulatory requirements, freeing up your time to focus on growing your business.
3) VAT Registration in the UAE:
The introduction of VAT in the UAE has led to many businesses struggling to comply with the new regulations. At RBS Auditing, we have the expertise to help you navigate the complex VAT landscape. Our team will guide you through the VAT Registration in UAE process and ensure that you are in full compliance with the law.

Jafza Offshore Company Formation
Jafza Offshore Company Formation

Benefits of Our Products and Services :
1) Expert Advice and Support: At RBS Auditing, we believe in providing our clients with expert advice and support. Our team of experienced professionals has a deep understanding of the local business environment and will guide you every step of the way.
2) Efficient and Streamlined Processes: We understand that time is money, which is why we have streamlined our processes to ensure that your business gets up and running as quickly as possible. With RBS Auditing, you can be confident that your business is in good hands.
3) Cost-Effective Solutions: At RBS Auditing, we believe in providing our clients with cost-effective solutions that deliver real results. Our team will work with you to find the most cost-effective way to meet your business needs.

Conclusion :
At RBS Auditing, we are committed to helping our clients achieve their business goals. With our wide range of products and services, we are confident that we can provide the support and expertise you need to succeed. So why wait? Contact us today and take the first step towards maximizing your business potential.

VAT Registration and VAT Return Filing service in Dubai

VAT

VAT registration method in UAE for brand new corporations was created obligatory for all businesses with Associate business. The new rule has gained momentum from each the general public and community. VAT registration in UAE involves a group of procedures that should be followed by a person/business to register with the Federal Tax Authority (FTA). Our team of RBS Auditing specialists is trained & appointed to fast-track the method and guide them through an equivalent to make sure that each rule & tip is complied with lawfully.

VAT registration in UAE
VAT registration in UAE

Set out to provide seamless expertise with UAE VAT registration online, our cluster of pros expertly & proven record can begin from the fundamentals of VAT tips to providing end-to-end services in VAT registration & filing.

They are intelligent concerning the newest norms set by the Federal Tax Authority and are equipped to supply you with timely help altogether matters associated with VAT.

 

Our Services

VAT Registration UAE

Our team of skilled tax professionals can facilitate in coping with tax-related problems to hurry up the processes for company formation within the UAE. We provide our purchasers with the foremost customized and practical solutions, guidance, and support in VAT registration in UAE.

 

Accounting Services

The key to success for a corporation is to stay a track of accounting, invoicing, and maintaining records. Our accounting partners are dedicatedly operating for the consumer in maintaining clerking. The knowledgeable accountants can also assist them by submitting documents, checking the accuracy, keeping & accounting funds, sharing tips, and being compliant with the law.

 

VAT Filing

Make intelligent business choices by maintaining Associate false accounting of books. Audit reports are created as per the wants recommended by the clients. We offer audit report services for corporations in areas within the UAE to renew their business license, company closure, or for a gap checking account.

 

Why select RBS Auditing 

VAT practice service

Our dedicated team of pros brings Associate in perspective to every challenge, vocation upon years of advantages experiences in various businesses and industries, and mixing their abilities and purpose, insights and intuitions, creativity, and usefulness.

 

Best business data

We have an Associate in a knowledgeable team of hired Accountants VAT consultants in the urban center & monetary Consultants; World Health Organization have many years of business data and experience and are continuously committed to victimization their experience to our client’s growth.

 

Customize solution

Each consumer and every business is different. Our experience of Vat Return Filing In UAE practice lies in delivering the customized answer that suits your gift and future business needs.

 

UAE to introduce 9% corporate tax on business profits from June 1, 2023

corporate-tax

Ministry of Finance to introduce federal corporate tax on business profits, effective for financial years starting on or after 1 June 2023

ABU DHABI, 31st January, 2022 (WAM) — The Ministry of Finance has announced that the UAE will introduce a federal corporate tax on business profits that will be effective for financial years starting on or after 1st June 2023. Businesses will become subject to UAE corporate tax from the beginning of their first financial year that starts on or after 1st June 2023.

The UAE corporate tax regime has been designed to incorporate best practices globally and minimise the compliance burden on businesses. Corporate tax will be payable on the profits of UAE businesses as reported in their financial statements prepared in accordance with internationally acceptable accounting standards, with minimal exceptions and adjustments. The corporate tax will apply to all businesses and commercial activities alike, except for the extraction of natural resources which will remain subject to Emirate level corporate taxation.

With a standard statutory tax rate of 9 percent and a 0 percent tax rate for taxable profits up to AED375,000 to support small businesses and startups, the UAE corporate tax regime will be amongst the most competitive in the world.

No corporate tax will apply on personal income from employment, real estate and other investments, or on any other income earned by individuals that does not arise from a business or other form of commercial activity licensed or otherwise permitted to be undertaken in the UAE.

“As a leading jurisdiction for innovation and investment, the UAE plays a pivotal role in helping businesses grow, locally and globally. The certainty of a competitive and best in class corporate tax regime, together with the UAE’s extensive double tax treaty network, will cement the UAE’s position as a world-leading hub for business and investment”, said Younis Haji Al Khoori, Undersecretary of the Ministry of Finance.

Younis Haji Al Khoori further adds that “with the introduction of corporate tax, the UAE reaffirms its commitment to meeting international standards for tax transparency and preventing harmful tax practices. The regime will pave the way for the UAE to address the challenges arising from the digitalisation of the global economy and the other remaining BEPS [Base Erosion and Profit Shifting] concerns, and execute its support for the introduction of a global minimum tax rate by applying a different corporate tax rate to large multinationals that meet specific criteria set with reference to the above initiative.”

Recognising the contribution of free zones to the UAE’s economy and competitiveness, the UAE corporate tax regime will continue to honour the corporate tax incentives currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct business with mainland UAE.

Given the position of the UAE as a global financial centre and an international business hub, the UAE will not impose withholding taxes on domestic and cross border payments, or subject foreign investors who do not carry on business in the UAE to corporate tax.

As an international headquarter location, a UAE business will be exempt from paying tax on capital gains and dividends received from its qualifying shareholdings, and foreign taxes will be allowed to be credited against UAE corporate tax payable.

The UAE corporate tax regime will have generous loss utilisation rules and will allow UAE groups to be taxed as a single entity or to apply group relief in respect of losses and intragroup transactions and restructurings.

The UAE corporate tax regime will ensure the compliance burden is kept to a minimum for businesses that prepare and maintain adequate financial statements. Businesses will only need to file one corporate tax return each financial year and will not be required to make advance tax payments or prepare provisional tax returns. Transfer pricing and documentation requirements will apply to UAE businesses with reference to the OECD Transfer Pricing Guidelines.

“The introduction of a corporate tax regime will help the UAE achieve its strategic ambitions and incentivise businesses to establish and expand their activities in the UAE,” said Younis Haji Al Khoori.

UAE businesses will be given ample time to prepare for the introduction of corporate tax in the UAE. The UAE Ministry of Finance plans to issue further information on the UAE corporate tax regime toward the middle of the year to help businesses get ready and be fully compliant.

*For further information, please visit the Federal Tax Authority website: https://tax.gov.ae/en

Courtesy:-  https://wam.ae/en

UAE AMENDED SOME ADMINISTRATIVE PENALTIES FOR VIOLATION OF TAX LAWS IN THE UAE

UAE Tax penalty
Cabinet Decision No. 49 of 2021 on Amending some Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE
In accordance with Cabinet Decision No 49 of 2021 on Amending some Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE, which will be effective from 28 June 2021, the FTA would like to inform you that it has released two Public Clarifications, which you can view on the FTA website.
With respect to TAXP002, and if you had any outstanding balances, you would have previously been able to see such outstanding balance on the returns page. From Wednesday 23 June, you will be able to see how much of your balance is related to tax and how much is related to administrative penalties on the My Payments page when you log into E-Services. This link will open a window that will include the following:
  • Tax Payable – this is the outstanding tax balance (based on tax returns you submitted and any adjustments due to voluntary disclosures or tax assessments) and will be updated on a daily basis until 31 December 2021, for you to know how much tax is outstanding and is subject to late payment penalties if not settled by payable date, and needs to be settled in full before 31 December 2021 to benefit from the redetermination of administrative penalties in accordance with Cabinet Decision No 49 of 2021.
  • Late Registration Penalty – this is the outstanding unpaid late registration penalty, if available.
  • Other Penalties Payable – this is the outstanding unpaid administrative penalties balance (other than late registration) and may increase if new administrative penalties are applied or decrease if payments are made or penalty reversed. The balance on 28 June 2021 will be subject to redetermination if conditions stated in Cabinet Decision No 49 of 2021 are met.
  • Net Payable Amount – this is the total amount of Tax Payable and Penalties Payable outstanding at any time.
  • Total Credit – this is the amount of credit that the registrant has with the FTA. FTA will be launching a full dashboard with your Tax Payable and Administrative Penalties

RECEIVED PENALTIES FOR NON-SUBMISSION OF ESR REPORT?!. FILE AN APPEAL

ESR-Notification-UAE
Received Penalties For No-Submission Of ESR Report?!. File An Appeal
Did you successfully submit the Economic Substance Notification & Economic Substance Report of your company to the Ministry of Finance?
Did you successfully submit the Economic Substance Notification & Economic Substance Report of your company to the Ministry of Finance?
Did you get any response from the authority is after that?
Many licensees in the UAE have come across penalty emails from the Ministry of Finance.

Did you get any such penalty email?

If yes, do you know how to resolve the issues? In order to resolve such issues, we should know exactly the reason for receiving such a penalty ticket from the Authority. We have listed down some of the reasons why you might have received penalty emails
Situation in which Economic Substance Notification is submitted declaring a Specific Relevant Activity. Later the Economic Substance notification amendment was filed that it is not covered in Relevant activity neither earning relevant income in the Economic Substance Notification.
In this case, the company need not submit the Economic Substance Report. But the approval for Amendment on Economic Substance Notification might have taken the time and by then the Economic Substance Report Tab becomes active.
Economic Substance Report was not filed since it is not carrying relevant activity . Still, the penalty ticket may raise.
How to waive off the penalties generated from situations like above?
In the above-given scenarios, the Licensee or Exempted Licensee will have the option to Appeal.
Article 13 & 14 of the Economic Substance Regulation provides the offences & penalties for failure to provide Notification and Report, respectively. The administrative penalty will be levied on that Licensee or Exempted Licensee who fails to submit Notification & Report (wherever applicable) as below: Failure to submit Penalty Amount
Failure to submit
Penalty amount
ECONOMIC SUBSTANCE REGULATION [ESR] Notification
AED 20,000
ECONOMIC SUBSTANCE REGULATION [ESR] Report
AED 50,000
If there is a delay in submitting Economic Substance Notification or Economic Substance Reports, and if such delay is because of the ignorance of the Law, the chance of getting approval for waiving off the penalty cannot be assured through an appeal.
But there are genuine cases as mentioned at the beginning of this article, where the penalty can be appealed and removed. We are happy to resolve your issues by submitting the Appeal to the Authority.

VAT CONSULTANCY SERVICES IN SHARJAH TRACK RECORD OF AUDITING DATA

Vat

Vat Consultancy Services In Sharjah are trusted and licensed professionals who offer all-inclusive Tax Services for VAT Registered Businesses since UAE commenced with Tax.  They can inform businesses on the fiscal impact of the tax on goods and services, and the safety measure taken to alleviate the effects.

Vat & Excise Consulting In UAE, UAE has the ability to deal with their VAT dealings by fulfilling with VAT law and recommend on associated transactions. Let us know how VAT consultants assist to make the whole VAT procedure easy and hassle-free.

Reasons for hiring a VAT Consultant:

Most of the companies are not known with the rules and regulations of estimating VAT and the procedure of payment. The companies should look for the direction of top VAT consultants in UAE, despite of striving with the complex formulas, complex numbers and wrong calculations. Other major reasons for hiring VAT consultants are mentioned below:

Superior Knowledge:

The top VAT consultants come with greater knowledge about the whole thing associated to VAT. This proves to be advantageous particularly for those who don’t have any skills abbot VAT. Vat Consultancy Services In Sharjah The consultants who are knowledgeable with VAT laws & rules will be able to teach taxpayers about different VAT rates and the correct way to compute payment.

Accuracy:

VAT consultants take the added endeavour to make sure that every VAT filed is cross-checked for precision. The information experiences thorough confirmation with the help of the digital structure as well as manual reviews. This is the approach the precision of data is maintained.

Experience:

A well-experienced VAT consultant, who has survived in the industry for a long period, and can avoid the common errors done throughout the VAT return in UAE / filing process.

Time saving:

Reason for choosing a VAT professional is that it reduces the time necessary for analysis, assessments and evaluating the risks related with the company.

Audit ready records:

They also help in making files and maintain record correctly to get ready for vat audits.