VAT Registration in UAE

If you are a UAE company or person that receives commercial compensation, UAE VAT Registration is required if your tax-deductible supplies exceed AED375,000 over the following 30 days.

For many companies, for many businesses, Registering with UAE VAT registration often results in delays and frustration. There is a widespread misconception that obtaining a UAE FTA TRN can be easy.

It is a fact that the VAT structure is changing. In the meantime, FTA continues to modify the Tax system from information and market research. Thus, due process will be limited to taking into account these changes.

Understanding VAT Registration in the UAE

To better understand the process of UAE VAT registration, below are a few essential points to consider.

Early Years

In the initial period of VAT, it became clear that numerous companies and individuals in the UAE registered for VAT while others waited. Certain (especially directors and individuals) needed clarification on what they needed to do to comply.

Before January and during Q1 2018, registering for VAT was pretty simple and quick. Businesses were required to self-declaration and were issued the UAE Tax Registration Number (TRN).

That is in line with the FTA strategy to incorporate the maximum number of eligible taxpayers to allow VAT to be introduced.

Following Years

The main focus is on the applicants presenting enough proof to satisfy the UAE VAT registration requirements to obtain the Tax Registration Number(TRN).

That requires significantly more knowledge and planning to ensure that the application goes smoothly and is completed as fast as feasible.

Inexpensive applications due to a lack of preparation lead to unnecessary delay and adverse effects, mainly if tax periods are set retrospectively. Your company will be held responsible for tax obligations at the time of registration. The registration date may be established in the past, and the relevant tax liabilities are your obligation (even if you haven’t been able to charge your customers)

Common Challenges

Knowledge and experience of FTA procedures and regulations are vital to avoid any issues or unexpected consequences.

Based on our experience, the most frequent causes for rejections or delays are:

1. Insufficient preparation and planning. Have you prepared your application before you reached the threshold? Have you ensured that you have collected all the required documents?
2. Inability to provide an explicit base to register. Are you being asked to prepare the summary of transactions to show the calculation of taxable supplies? Do you have a good knowledge of the taxable supply?
3. The absence of information provides the foundation for registration. Have you got all of the required documents needed to submit your application?
4. Need for more understanding of FTA requirements and procedures. Did you read and understand the FTA manuals and procedures?
5. Changes to FTA policy. Are you the first to register, or have you registered with another organization? If so, it’s likely that you are not up-to-date with current procedures and are unprepared.

UAE VAT Registration Support

If your brand new UAE business isn’t sure and not familiar with UAE FTA requirements and regulations, It is strongly advised that you secure your assistance.

As a recognized FTA Tax Agency, we’re frequently required to resolve issues with tax submissions caused by one or more of the above issues.

Many requests could have been addressed by assisting at the beginning of the process to create an underlying foundation for the application.

Begin with professional assistance to reduce time and frustration. Our Tax Consultants will plan to prepare and ensure complete compliance with the FTA regulations.

Solved is an ISO 9001 & 27001 certified business and licensed FTA Tax Agent. Our team of highly experienced tax consultants and agents offers high-quality and affordable services, including UAE VAT registration for businesses of any size.

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