For VAT purposes, taxable supplies worth AED 375,000 annually are required to be registered. Businesses below this threshold might, however, be asked to register voluntarily in some situations, such as when they supply specific goods or services that are exempt from VAT but are subject to reverse charge, or when they are part of a VAT group. Essentially, voluntary registration is also available if at any time the taxable supply is worth AED187,500 in the company

Once the registration is completed it is compulsory to adhere to the regulations stipulated by the Federal Tax Authority.

Procedure for VAT Registration in the UAE for a New Company

In the United Arab Emirates, it is essential to undergo the following procedures before obtaining a VAT Registration No.

Check the Status of Your VAT Registration

Analyze your taxable supply for the year to see if you fulfill the requirements for mandatory registration.
Take into account any requirements for voluntary registration.

Collect the Necessary Paperwork

Trade License: A copy of the trade license issued to your business.
Emirates ID: Copies of the Emirates IDs of the authorized signatories.
Office Address Proof: Proof of the company’s office address.
Additional Documents: Depending on your business type and activities, additional documents may be required as per FTA regulations.

Submit Your Application for VAT Registration

Fill out the Federal Tax Authority’s (FTA) application for VAT registration.
Send the completed form to the FTA together with the necessary paperwork.
The application may be turned in in person at an FTA service center or online via the FTA’s e-Services portal.

Acquire a Certificate of VAT Registration

You will receive a VAT registration certificate from the FTA after your application has been approved for review.
Your VAT registration number, which you will need for any VAT-related transactions, will be mentioned on the certificate.

VAT Return Filing Requirements and Payment Schedule

You will need to submit and pay for regular VAT returns after registering for VAT. The size and operations of your firm determine how frequently you receive returns. Larger firms could be required to file monthly returns, although in general, enterprises with annual taxable supplies below AED 150 million must file quarterly filings.

VAT Group Registration and Its Benefits

The ability to apply for registration as a VAT group means that if your company has several legal companies or subsidiaries in the UAE, it might be beneficial to register as a VAT group. Subsequently, it will assist you in your compliance with VAT laws by letting you group all the sister concerns’ VAT transactions as well as filings and therefore reduce your working hours.

Ongoing Responsibilities After VAT Registration

Following approval of your VAT registration, you will have several continuing responsibilities, such as:

Keeping precise records of all VAT-related transactions is important. This includes keeping track of invoices, credit notes, and bank statements.
VAT return filing: Submit quarterly VAT returns to the FTA or as instructed by the authorities.
VAT payment: Within the allotted time, the VAT due amount after computing the total VAT should be paid to the FTA.
Also, Input VAT (VAT paid on purchases) should be claimed as a deduction from output VAT (VAT levied on sales).
Meeting the requirements of the audit: Make sure you are ready for any prospective FTA VAT audits to verify compliance.

Conclusion

A reputable professional services company in the UAE, Farahat & Co., can offer your company full-service VAT compliance solutions. Our knowledgeable staff can help you with:

Registration for and adherence to VAT.
preparing and filing VAT returns.
VAT examinations and audits.
Resolution of VAT disputes.
VAT guidance services.

Top Tax Consultants in UAE such as Farahat & Co. can help you minimize your taxes and ensure compliance with VAT laws. Thus, contact us today and we shall be glad to assist you.