Filling of Exception Form
Easily manage your Exception Form submissions with Stratify’s support. We assist you in accurately filling out forms to ensure your VAT compliance is upheld without any hassle.
Filing of Exception Form for VAT in UAE
The VAT Exception Form in the UAE is a document that businesses can file with the Federal Tax Authority (FTA) to seek an exemption from VAT registration. Businesses that meet specific conditions—such as not reaching the mandatory registration threshold—may apply for this exception. The primary purpose of this form is to allow businesses to delay or be exempted from VAT registration and its associated obligations if they qualify.
Process for Filing the VAT Exception Form
Eligibility Check
Before applying for a VAT exception, a business must verify that it meets the criteria set by the FTA. The key requirements typically include:
- The business’s taxable supplies and imports fall below the voluntary registration threshold (AED 187,500) or the mandatory registration threshold (AED 375,000).
- The business is not involved in specific transactions or activities requiring mandatory registration.
Form Submission
Once eligibility is confirmed, the next step is to submit the VAT Exception Form online via the FTA’s portal. The form requires detailed information about the company’s taxable supplies, revenue, and activities. Businesses must ensure that the data provided is accurate, as any discrepancies can result in delays or rejection.
FTA Review
After submission, the FTA will review the application to ensure the business qualifies for the exception. The FTA may request additional documentation or clarification during this stage. It’s essential to respond promptly to any queries to avoid further delays in the process.
Decision Issuance
If the FTA approves the exception application, the business will be exempt from VAT registration. However, if the business’s revenue exceeds the mandatory threshold in the future, it must apply for VAT registration. If the application is rejected, the business must proceed with VAT registration to stay compliant with UAE regulations.
Documents Required for Filing the VAT Exception Form
To ensure a smooth and successful filing, businesses need to gather and submit the following documents:
Company Trade License
A copy of the company’s valid trade license to verify its legal registration
Financial Statements/Revenue Records
These documents help demonstrate that the business’s taxable supplies fall below the required thresholds
Detailed List of Supplies and Imports
This list provides insight into the nature and volume of supplies and imports made by the business
Proof of Business Activity (if applicable)
Any contracts or documents that support the company’s ongoing business activities
Other Supporting Documentation
Additional documents may be required by the FTA, depending on the specific business type
How Stratify Can Help with VAT Exception Filing
Stratify’s team of VAT experts ensures that your VAT exception filing process is handled efficiently and with precision. Here’s how we support you:
Eligibility Assessment
We review your business activities and revenue to determine if you qualify for VAT exemption.
Documentation Assistance
We guide you in gathering all required documents and ensure they are presented correctly to avoid any issues during the review process.
Form Preparation and Submission
We handle the completion and submission of the VAT Exception Form on your behalf, ensuring that all details are accurate and in line with FTA requirements.
FTA Communication
We act as your representatives when dealing with the FTA, addressing any follow-up queries or additional documentation requests.
VAT Registration Support
If your VAT exception is rejected, we assist you with registering for VAT, ensuring your business stays compliant.
Ongoing Support
We offer continued support for VAT compliance, including advisory and filing services to ensure you meet all regulatory requirements in the UAE.
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Frequently Asked Questions
What is the VAT Exception Form?
The VAT Exception Form is a document businesses can file with the FTA to request an exemption from mandatory VAT registration. It is designed for companies whose taxable supplies fall below the registration threshold.
Who can file a VAT Exception Form?
Businesses whose taxable supplies and imports are below the mandatory registration threshold of AED 375,000 or the voluntary threshold of AED 187,500 can file for VAT exception.
How long does the FTA take to approve or reject the VAT Exception Form?
The FTA typically takes several weeks to review and issue a decision on VAT Exception Form submissions. Timely responses to any queries from the FTA can help expedite the process.
What happens if my exception request is denied?
If your exception request is denied, you will be required to register for VAT. Stratify can assist with the registration process to ensure you remain compliant with UAE VAT laws.
Can I reapply for VAT exception if my application is rejected?
Yes, you can reapply if you believe your circumstances have changed and you now meet the criteria for VAT exemption. We can help assess your eligibility and refile the application.
Do I still need to file VAT returns if my business is granted an exception?
No, if your business is granted an exception from VAT registration, you are not required to file VAT returns. However, you must monitor your revenue and register for VAT if you later exceed the mandatory threshold.
Can I voluntarily register for VAT even if I qualify for an exception?
Yes, businesses can voluntarily register for VAT if their taxable supplies and imports exceed AED 187,500, even if they are below the mandatory threshold.
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Conclusion
At Stratify, we are dedicated to simplifying VAT compliance for businesses across the UAE. Filing the VAT Exception Form is an important step for companies that want to avoid the burden of VAT registration if they meet the exemption criteria. Our expert team ensures a seamless process, from assessing your eligibility to submitting the necessary documents to the FTA. Reach out to us today to learn how we can help with your VAT exception or other VAT-related needs.
