VAT Registration

VAT Registration
by Aswani

VAT Registration in Abu Dhabi

HLB Abu Dhabi boasts a dedicated team of experienced tax consultants ready to assist new and existing businesses in Abu Dhabi with VAT administrative formalities. This includes VAT registration, deregistration, and group amendments.

Our tax professionals will guide you through the document and information requirements specific to your business structure and needs. This ensures an effective application process for registration, deregistration, or group amendments, leading to faster approval from the Federal Tax Authority (FTA).

Furthermore, our tax team maintains regular communication with FTA officers to proactively address any additional information requests and expedite the overall administrative process.

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Understanding VAT Registration Services in Abu Dhabi

Value Added Tax (VAT) is a tax applied to most goods and services bought and sold within UAE. It’s a transaction-based tax, meaning it’s added to the price at each stage of the supply chain.

However, not all businesses need to charge VAT. The obligation to register for VAT and collect VAT on sales only applies to taxable persons. These are businesses whose taxable supplies and imports of goods and services exceed AED 375,000 in a 12-month period.

Upon registering for VAT, a business receives a Tax Registration Number (TRN) and becomes a registrant. This allows them to collect VAT on sales and claim back VAT paid on business purchases.

In essence, VAT registration is mandatory for businesses in Abu Dhabi exceeding the threshold. It enables them to collect VAT and potentially claim it back, impacting their cash flow.

VAT Registration : Mandatory vs. Voluntary

The Value Added Tax (VAT) system in the United Arab Emirates (UAE) offers two registration options for businesses: mandatory and voluntary. Here’s a breakdown of each:

Mandatory VAT Registration:

  • Who needs it: Businesses with taxable supplies and imports exceeding AED 375,000 in the past 12 months OR those anticipating exceeding this threshold in the next 30 days must register for VAT mandatorily.
  • Consequences of non-registration: Failure to register for VAT when mandatory can result in penalties and fines.
  • Benefits: Registered businesses can collect VAT on their sales, potentially improving cash flow.

Voluntary VAT Registration:

  • Who can choose it: Businesses with taxable supplies and imports (or taxable expenses) exceeding AED 187,500 (which is half the mandatory threshold) can opt for voluntary VAT registration.
  • Benefits:
  1. Claiming VAT paid on business expenses, which can improve cash flow.
  2. Appearing more credible to potential customers who are also VAT-registered businesses.
  • Drawbacks: Businesses must charge VAT on their sales, which could impact pricing and competitiveness.

VAT Registration Process in Abu Dhabi

Step 1: Sign Up and Activate Your EmaraTax Account

  • Visit the Federal Tax Authority (FTA) website: https://tax.gov.ae/en/services/vat.registration.aspx
  • Locate the section for EmaraTax account registration.
  • Create a new EmaraTax account by following the on-screen prompts.
  • Once registered, activate your account using the provided instructions (usually via email verification).

Step 2: Create Your Taxable Person Profile

  • Log in to your activated EmaraTax account dashboard.
  • Look for the option to “Create New Taxable Person Profile”.
  • Fill out the required information about your business, ensuring accuracy.

Step 3: Initiate VAT Registration

  • Within your Taxable Person Account (accessible by clicking “View”), locate the “Value Added Tax” section.
  • Click on the “Register” button.

Step 4: Complete the VAT Registration Process

The system will guide you through a series of steps for completing the VAT registration. Be prepared to provide additional details about your business operations, financial information, and any supporting documents as required.

Follow the instructions carefully and submit all necessary information accurately.

Streamline Your VAT Registration with HLB Abu Dhabi

Navigating VAT registration in Abu Dhabi can be a complex process, especially for businesses unfamiliar with the UAE’s tax system. HLB Abu Dhabi offers comprehensive support to ensure a smooth and efficient VAT registration experience for your business. Here’s how we can help:

  1. Determining Registration Requirements:

    Our tax experts will assess your business activities and taxable supplies to determine if mandatory or voluntary VAT registration applies to you.

  2. EmaraTax Account Setup and Management:

    We can guide you through the EmaraTax account registration process, ensuring all details are entered accurately. We can also assist with account activation and ongoing management.

  3. VAT Registration Application Preparation:

    Our team will collaborate with you to gather and compile all necessary documentation for your VAT registration application with the Federal Tax Authority (FTA). This includes financial statements, trade licenses, and any other relevant information.

  4. Communication and Liaison with the FTA:

    We can handle all communication with the FTA on your behalf, ensuring timely submission of your application and addressing any questions or requests for additional information that may arise throughout the process.

  5. Ongoing VAT Compliance Support:

    HLB Abu Dhabi goes beyond just registration. We can provide ongoing guidance on complying with UAE VAT regulations, including record-keeping, filing VAT returns, and managing your VAT obligations effectively.

How HLB Abu Dhabi Can Help?

Contact us today to discuss your specific situation and learn how we can help.

Call or Email us: +971 50 742 7124 or abudhabi@hlbhamt.com

Frequently Asked Questions (FAQ’s)

  1. Do I need to register for VAT in Abu Dhabi?

    Our tax professionals can help you determine if mandatory or voluntary VAT registration applies to your business based on your taxable supplies and imports. Generally, businesses exceeding AED 375,000 in taxable supplies and imports within a 12-month period must register for VAT.

  2. What documents do I need for VAT registration?

    The specific documents required can vary, but they typically include:

    • Trade license
    • Financial statements
    • Passport copies of company owners and authorized signatories
    • Memorandum of Association (MOA)
    • Any other relevant documentation requested by the FTA.

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  3. When can we expect to receive the VAT registration certificate?

    The electronic version of the VAT registration certificate will be accessible on the registrant’s e-Services account dashboard.

  4. What happens after I register for VAT?

    HLB Abu Dhabi can provide ongoing support for your VAT compliance needs. This includes:

    • Record-keeping guidance
    • VAT return filing assistance
    • Management of your VAT obligations