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What you need to know now
The January 2018 announcement is historical. Today’s registration assessment should use current FTA thresholds and the business’s actual supplies.
The original article is preserved below as a historical record. Earlier deadlines, rates, offers and approval statements should not be used as current guidance.
- Identify the correct taxable person.
- Separate exempt sales from taxable supplies.
- Retain the calculation and supporting records.
Separate the 2018 campaign from a current obligation
The original announcement urged businesses to complete registration shortly after VAT began in the UAE. That launch context is historical. A business starting or changing activity today needs a fresh assessment based on the current rules, its legal identity and the value and nature of its supplies and imports.
Do not interpret the old registration campaign as a one-off opportunity that has closed. Equally, registration is not something to defer until the business decides it would be convenient to charge VAT. Establish the relevant obligation date from the facts and current FTA guidance, and retain the calculation used.
Use the right transaction measure
VAT registration does not depend simply on profit, money received or the total shown as turnover in a bank statement. Identify taxable supplies and imports and distinguish them from exempt activity. The relevant look-back and forward tests need the appropriate data, including supported expectations where applicable.
Prepare a monthly schedule with a clear explanation of inclusions and exclusions. For example, a credit note or unusual disposal should not be included or excluded merely to achieve a preferred threshold result. Escalate uncertain items for review and preserve the source reports so the assessment can be reproduced later.
Identify the correct person and evidence
The legal entity making the supplies matters. Branches, sole establishments and separately incorporated companies should not be combined or split solely because they share a brand. Check ownership, licence and incorporation documents before choosing the taxable-person profile used for the application.
Prepare the evidence required for that applicant, including authorised-signatory details and the basis for its turnover declaration. Where expected business supports an application, retain the relevant contracts or orders. A complete and consistent file is more useful than uploading unrelated documents and waiting for the authority to identify what is missing.
Set up compliance after approval
Registration is the start of a recurring process. Confirm the effective date, certificate details and filing schedule, then make sure the billing and accounting systems use the correct information. Train staff on the approved tax codes and the evidence needed for purchase claims.
Assign responsibility for monitoring account messages, preparing returns and arranging payment. Keep the application calculation and approved certificate accessible for later review. If activity changes or the business approaches a possible deregistration position, reassess it under the relevant rules rather than treating the original registration decision as permanent proof of every later obligation.
YOUR NEXT STEPS
A practical way forward
- 01
Step 1
Compile the relevant turnover and import data.
- 02
Step 2
Assess registration and prepare the evidence.
- 03
Step 3
Submit through the current FTA route and retain the decision.
CLEAR ANSWERS
Frequently asked questions
Does profit determine the VAT threshold?
No. VAT registration uses the relevant supply and import measures.
Does a free zone licence itself remove VAT registration?
No. Assess the actual supplies and rules.
Read the original article First published 8 January 2018 · retained for context
This earlier article is preserved for context. Its rates, deadlines, approvals and announcements may have been superseded. Use the current guidance and official references on this page for your next step.
Abu Dhabi, January 7, 2018:The Federal Tax Authority (FTA) has urged all business sectors to complete their registration for Value Added Tax (VAT) purposes, commending the commitment and high turnout in the registration process. The FTA confirmed that the registration process is continuing, and that other businesses who did not register to date should register immediately to avoid fines and legal proceedings. As per the FTA, all natural and legal persons having businesses in the UAE, with taxable supplies and imports of goods/services exceeding AED 375,000 over the previous 12 months or coming 30 days, must register for VAT. Taxable supplies are defined as all supplies of goods/services made that are not exempt, as well as imports of goods and services.
The FTA also stressed the importance of completing all registration requirements and obtaining a tax registration number (TRN), as well as to carefully review it and ensure its flawlessness before submitting, as incorrect/incomplete data could lead to the rejection of the application.
Businesses are also required to validate their entitlement to request for an Exception from VAT registration, which means that all their supplies must be zero rated. If not, the application will be sent back to the registrant for amendments, which might delay the process of receiving a TRN.
Registration is available 24/7 through the FTA’s website. Businesses are required to visit the website www.tax.gov.ae, select the e-Services portal, sign up, and create an account. Once the email has been verified, they can log in and register.
The FTA has called on businesses to provide accurate information, and make sure they enter it properly into the application form. To complete the registration process, scanned documents must be attached, including the business or trade license, passport/Emirates ID (for UAE residents) of the manager or owner of the business, and the authorized signatory (if the signatory is not the manager him/herself), as well as proof of authorization for the manager or signatory (e.g. articles of association, power of attorney attested by notary, etc.).
More information can be found in the Legislation and Guides sections, on the FTA website.
VERIFY THE DETAIL
Official sources & further reading
Source checks support this general guide. Your treatment depends on the facts, tax period and applicable legislation.
