VAT Registration
VAT registration is a critical process for businesses operating in the UAE, ensuring compliance with the Value Added Tax (VAT) regulations introduced in 2018. At Stratify, our expert team provides comprehensive VAT registration services, helping you navigate the complexities and stay compliant with the Federal Tax Authority (FTA) requirements.
VAT registration is the process where a business or individual registers with the FTA to collect and remit VAT on goods and services supplied in the UAE. Businesses meeting certain revenue thresholds are mandated to register, and they are required to charge VAT on their taxable supplies while also being able to reclaim VAT paid on their purchases.
VAT registration ensures that your business complies with UAE tax laws, helping avoid penalties and fines. Registered businesses must charge VAT on taxable goods and services and remit it to the FTA, contributing to the overall tax revenue of the UAE.
Process of VAT Registration
The VAT registration process in the UAE involves the following steps:
Determining Eligibility
First, assess whether your business is eligible for VAT registration. Businesses with taxable supplies exceeding AED 375,000 in the last 12 months or expected to cross this threshold in the next 30 days must register for VAT. Voluntary registration is available for businesses with a turnover between AED 187,500 and AED 375,000.
Preparing Required Information
Before starting the registration process, gather all necessary information, including company details, business activities, financial information, and the nature of supplies.
FTA Portal Registration
Businesses need to create an account on the FTA’s e-services portal. Once logged in, you can access the VAT registration application.
Filing the Application
Complete the online VAT registration form, providing information such as
- Company details
- Business activities
- Expected VAT liability
- Financial records (annual turnover)
- Details of the authorized signatory
Submit Required Documentation
Submit supporting documents, such as your trade license, passport/Emirates ID copies of the owner(s), and financial statements. These documents help verify your business’s eligibility and activities.
FTA Review and VAT Registration Number (TRN)
After submitting the application, the FTA will review your information. Once approved, you will receive a Tax Registration Number (TRN), officially making you a registered VAT entity.
Documents Required for VAT Registration
To successfully complete your VAT registration, the following documents are typically required:
Trade License
Verifies your business's legal standing and eligibility to operate in the UAE, required for VAT compliance.
Passport copy and Emirates ID
Confirms the identity of the business owner(s) or partners, aiding in individual verification.
Proof of business activities
Contracts or agreements showing the nature of operations, supporting VAT registration relevance.
Financial records showing turnover
Bank statements or audited financials proving business revenue and VAT eligibility.
Proof of authorized signatory
Documents like a Power of Attorney, if applicable, to confirm authorized representatives for VAT matters.
Import/Export documents
Required if the business deals with international trade, showing VAT-relevant activities.
Business Bank Account Details
Confirms banking setup and aligns with financial data for VAT purposes.
How Stratify Can Help with VAT Registration
At Stratify, we specialize in VAT consulting and offer end-to-end assistance in VAT registration. Our experts guide you through every step of the process, ensuring that your registration is accurate and timely, while also minimizing the risk of errors and penalties.
Our VAT Registration Services Include:
Eligibility Assessment
We help assess whether your business is required to register for VAT based on your revenue and business activities.
Document Preparation
Stratify assists you in collecting and organizing the necessary documents, ensuring that your VAT application is complete and compliant.
FTA Portal Management
We handle the entire registration process on the FTA’s e-services portal, ensuring that all details are correctly filled out and submitted.
Timely Submission
Our team ensures that your application is submitted on time, avoiding any delays or penalties due to late registration.
Post-Registration Support
Once your VAT registration is approved, we offer ongoing support, including VAT return filing and compliance services, helping you meet your VAT obligations.
Eligibility Assessment
We help assess whether your business is required to register for VAT based on your revenue and business activities.
Document Preparation
Stratify assists you in collecting and organizing the necessary documents, ensuring that your VAT application is complete and compliant.
FTA Portal Management
We handle the entire registration process on the FTA’s e-services portal, ensuring that all details are correctly filled out and submitted.
Timely Submission
Our team ensures that your application is submitted on time, avoiding any delays or penalties due to late registration.
Post-Registration Support
Once your VAT registration is approved, we offer ongoing support, including VAT return filing and compliance services, helping you meet your VAT obligations.
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Our Other Value Added Tax Services
Our Services
Stratify Corporate services is an independent and international organisation with a specialization in crafting sustainable solutions and strategies
Value Added Tax
Ensure full compliance with UAE’s Value Added Tax regulations through tailored advisory, registration, filing, and VAT health check services.
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Corporate Tax
Navigate UAE’s corporate tax landscape with strategic tax planning, filing, and compliance support to optimize your tax position.
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Excise Tax
We assist businesses in understanding and complying with excise tax regulations, including registration, filing, and audit preparation.
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Accounting Outsourcing
Streamline your financial operations by outsourcing your accounting needs, from bookkeeping to financial reporting, for efficient management.
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Customs
Simplify import-export procedures and ensure compliance with UAE Customs regulations through advisory, registration, and customs reconciliation services.
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Company Formation
Start your business in the UAE with expert guidance on company incorporation, licensing, and compliance with local regulations.
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Audit & Assurance
Our audit and assurance services provide reliable financial insights, ensuring transparency and compliance with regulatory requirements.
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Economic Substance
Anti-Money Laundering
Protect your business by staying compliant with UAE’s AML regulations, with risk assessments, monitoring, and reporting solutions.
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Frequently Asked Questions
Who is required to register for VAT in the UAE?
Businesses with taxable supplies and imports exceeding AED 375,000 over a 12-month period must register for VAT. Voluntary registration is also available for businesses with taxable supplies between AED 187,500 and AED 375,000.
Can I register for VAT voluntarily?
Yes, businesses with taxable supplies or imports between AED 187,500 and AED 375,000 can register voluntarily. This allows smaller businesses to claim VAT on their purchases.
What happens if I don’t register for VAT when required?
Failure to register for VAT when mandated by the law can result in penalties from the FTA, which could be as high as AED 20,000.
What is a Tax Registration Number (TRN)?
A TRN is a unique identification number issued by the FTA once your VAT registration is approved. It is used to identify your business for VAT-related transactions.
How long does the VAT registration process take?
Once your application is submitted, the FTA typically takes around 20 business days to process and approve it. However, this can vary depending on the completeness of the application and documents.
Can I claim VAT on purchases made before registration?
Yes, under certain conditions, you can reclaim VAT on goods and services purchased before VAT registration. However, this must be done according to FTA regulations.
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Conclusion
VAT registration is a critical step for businesses operating in the UAE, ensuring compliance with local tax regulations. At Stratify, our experienced team can assist you in completing the registration process with ease, helping you avoid penalties and maintain compliance.
For more information on VAT registration and our services, contact Stratify today.
