VAT Registration

With the announcement of the introduction of VAT in UAE from 1st January 2018, it is
mandatory for the businesses to register themselves as per the criteria specified in the new tax
regime. All the individuals or the firms engaged in businesses activity have to comply with the
rule laid down by the Federal Tax Authority. For example, Registration will be necessary for all
the firms that fall under the threshold annual turnover of AED 375,000 and more than 350,000
AED of businesses are expected to register under this new regime.

The businesses that have not registered for VAT will neither be able to charge VAT on their sale
nor will be able to claim Input VAT paid on their purchases. Moreover, a business can get itself
registered, regardless of the fact that they meet the threshold annual turnover criteria or not,
i.e. there is an option of voluntary registration too, for the businesses that don’t fulfill the
minimum annual income criteria but are above the base of AED 187,500. The registration
criteria have been described below in more explanatory form.

Mandatory Registration:

It is mandatory for the businesses to register themselves if
 The annual turnover exceeds AED 375,000 and this threshold must have been exceeded
in the last 12 months
 Taxable supplies can be made by the business in next 30 days that will have a value
more than the threshold of mandatory registration.
Voluntary Registration: The businesses that don’t meet the mandatory threshold criteria can
opt for voluntary registration if

 The annual turnover exceeds AED 187,500 but is below AED 375,000 and this threshold
is expected to be exceeded in next 30 days.
 In last 12 month duration, the taxable expenditure exceeds the worth of voluntary
registration threshold.

What Documents Required for VAT Registration ?

1. A valid email id which shall be used as the login id for VAT registration and compliance
purposes on the FTA website

2. Are you registering as a Tax group or a single company? (A Tax group can be formed
when you have two or more separate legal entities; each of which must be resident in
the UAE, that are associated and which meet specific control criteria).
3. Copy of valid Trade License
4. Certificate of Incorporation/ Registration Certificate (if applicable)
5. Are you registering mandatorily (where turnover is more than AED 375,000) or
voluntarily (where turnover/expenses is more than AED 187,500)
6. Copy of emirates ID and passport of the owner/partners (all the owners/partners
including sponsors)
7. Mobile number and email of Authorized signatory /manager
8. Copy of Passport and Emirates ID of the Manager (Manager as per license)
9. Memorandum of Association (MOA)
10. Contact Details of company (complete address & P.O Box with emirate)
11. Primary bank account details including IBAN(This will be used for VAT refund purposes)
12. List other business(es) of the directors/ partners in UAE in the last 5 years along with
their Trade License copies (if applicable)
13. Do you expect to provide services which are VAT exempt like financial services, Supply
of residential buildings through sale or lease, Supply of bare land& Supply of local
passenger transport?
14. Copy of audited/unaudited financials for the last 12 months
15. Details of primary and secondary activities of the business (general description is
required)
16. Expected revenue and expense for the next 30 days (an approximate number)
17. Supporting documents for customs registration in each Emirates (if applicable)
18. Estimated value of imports for one year from each GCC countries
19. Estimated value of exports for one year to each GCC countries
20. Whether you expect to deal with GCC suppliers or customers
21. If you are registered for VAT in any GCC member states and if doing business with any
GCC country? (Country name, TRN, Estimated value of imports and exports (AED per
year))
22. Do you have a trade name that differs from the name of entity (trade name along with
legal name will appear on your VAT certificate)?
For further assistance please contact our experts at : info@shibls.com