Value Added Tax (VAT) is mandatory for businesses operating in the UAE that exceed the annual taxable turnover threshold of AED 375,000. Here are the key formalities for VAT registration:
1. Determine Eligibility
Businesses must assess their taxable turnover. Registration is mandatory for businesses exceeding AED 375,000 annually and voluntary for those above AED 187,500.
2. Prepare Required Documents
Businesses must provide the following:
- Trade license copy
- Emirates ID of business owner(s)
- Passport copies of business owner(s)
- Business contact details (address, phone, email)
- Financial statements or turnover details
- Description of business activities
3. Register on the FTA Portal
Businesses must create an account on the Federal Tax Authority (FTA) portal and submit the application online. The process includes filling in business details, turnover information, and uploading supporting documents.
4. Obtain VAT Registration Certificate
Upon approval, the FTA issues a Tax Registration Number (TRN) and a VAT certificate. Businesses must display this TRN on invoices and official communications.
5. Comply with Post-Registration Obligations
After registration, businesses must:
- Charge VAT on taxable supplies.
- Maintain VAT-compliant invoices.
- File periodic VAT returns and pay dues.
- Keep accurate records for FTA audits.
Simplify VAT Registration with Experts
Navigating VAT registration can be complex. Partnering with experienced consultants like Ads Auditors ensures accurate submission, compliance, and peace of mind.
Contact Ads Auditors today to handle your VAT registration formalities effortlessly!
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