As per UAE VAT law, after the implementation of VAT effective from 1^st January 2018, the threshold for registration for all businesses and individual persons register for VAT as per threshold below with Federal Tax Authority in UAE.

1. Mandatory registration threshold is AED 375,000
2. Voluntary registration threshold is AED 187,500

Delay in registration under the mandatory threshold will attract penalties.

1) UAE VAT Registration under the mandatory threshold

Any business must get registered if they fall under the following category

• The taxable supplies of the companies or individuals extend beyond the compulsory registration threshold for the past 12-month period, or
• The companies or individuals expect to make taxable supplies in the next 30 days that the value will extend the mandatory registration threshold value, or
• The amount of compulsory registration threshold is AED 375,000.

2) UAE VAT Registration under the voluntary threshold

Any businesses or individuals that do not meet the mandatory registration criteria and falls into the following category may opt for voluntary registration.

• The taxable supplies or taxable expenditures are worth more than the voluntary registration threshold for the previous 12-mont period, or
• The business expects for their taxable supplies or taxable expenditure for the next 30 days to be worth more than the voluntary registration threshold amount of AED 187,500.

UAE VAT APPLICABLE RATES

1. 5% standard rate will be applicable for all goods and services classified under standard rated supplies
2. Zero rates will be applicable on identified educational services and health care services, newly constructed residential buildings that are supplied for the first time within three years of their construction, international transport of goods and services, identified investment grade precious metals, Export of goods and services and supplies of the identified sea, air and land means of transportation
3. Margin based financial services, residential properties, life insurance, local passenger transport and bare land are coming under the exempt category.

DOCUMENTS AND REGISTRATION REQUIREMENTS FOR VAT

1. Trade License
2. Memorandum of Association
3. Passport Copies of Shareholders
4. Emirates ID of Shareholders
5. Passport Copy of Manager
6. Emirates ID of Manager
7. Bank Name/Branch/Address
8. Bank Account number of Company / IBAN
9. Office/Warehouse Building Name
10. Office /Warehouse Street Name
11. Shop/Office/Warehouse Number
12. Email / Telephone/ Fax / P.O.Box of Authorized Person/Manager
13. Last 12 months of business Turnover
14. Expected Turnover in 30 days

If any Previous business details (in the last five years had done any business or still doing)

Do you intend to import goods or services?

Do you intend to export goods or services?

If you are registered for VAT in any GCC member states and if you import from or Export to GCC members states, then please provide the following information

If you are registered with any of the Customs departments in the UAE, Details required. (The report will assist the FTA, and the relevant Customs department identifies you accurately at the time of importing and exporting goods into or from the UAE. Failure to enter this information may result in delays at the border).

Do you have a Customs number? Require customs registration certificate for VAT Registration purpose

Get a free consultancy or more details, please call us

The blog is written by Senior Consultant from Alfamc.com

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