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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.