A consumption tax, known as the Value Added Tax (VAT) is imposed on the value that is added to products and services at each step of production or distribution. In the United Arab Emirates (UAE), VAT was introduced on January 1, 2018, at a standard rate of 5%. The UAE government now relies heavily on VAT as a major source of income. To register for VAT, the Federal Tax Authority (FTA) demands specific documentation from each entity that meets the threshold requirements.
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Required Documents for VAT Registration
The following are the essential documents that eligible businesses need to prepare when applying for VAT registration in the UAE.
1. Trade License
One of the most essential documents for UAE VAT registration is the trade license. The competent authorities issue it in the UAE and act as documentation of your company's legal existence. Before you begin the registration process, make sure your trade license is current and valid.
2. Emirates ID and Passport Copies
To register for VAT, you must produce copies of the following individuals' Emirates ID and passports:
- Owner of the business: You must submit a copy of your passport and your Emirates ID if you are a sole proprietor.
- Partners: If your company has partners, copies of their passports and Emirates IDs are needed.
- Authorized signatory: Copies of the Emirates ID and passport should also be submitted if a person other than the business's owner or partners will be in charge of VAT-related matters.
These documents are required to verify the identity of the individuals participating in the organization.
3. Proof of Authorization for the Authorized Signatory
To prove that the permitted signatories have the authority to represent your company, you must provide documentation of their authorization. This category may include board decisions or other legal documents that identify them as representatives for tax purposes.
4. Contact Information
Ensure the contact details you offer for your company are accurate and current. Addresses, phone numbers, and email addresses are all included in the contact details. A successful communication with the Federal Tax Authority depends on providing accurate contact information.
5. Bank Account Details
For VAT registration, a bank letter attesting to your company's bank account information is required. You must submit information of the bank account of your company, including the name of the bank, the account number, and the IBAN. By doing this, you can confirm the financial condition of your company and make sure that the Federal Tax Authority have the data they need to conduct payments and refunds.
Read More: Guide to VAT Late Payment Penalty in UAE
6. Additional Documents Depending on Business Type
You might need to submit additional documentation, depending on the nature and type of your business activities. Here are a few instances:
- For Taxable Goods:
With the exception of Federal and Emirate governments, these documents are applicable to all legal types:
- Audit report (whether a financial statement has been audited or not).
- A self-made calculation form for supplies that are taxable or zero-rated.
- A revenue prediction backed by documentation (such as a contract or local purchase order).
- The authorized signatory's signature and stamp on the monthly turnover declaration.
- Supporting financial records, such as contracts, title deeds, LPOs, invoices, and lease agreements.
- For Taxable Expenses:
With the exception of Federal and Emirate governments, these documents are applicable to all legal types:
1. Audit report (whether a financial statement has been audited or not).
- Budget report of expenses.
- Articles of Association/Partnership Agreement:
If Applicable, you could be required to present these legal documents if your company is a legal entity.
- Certificate of Incorporation
If Applicable, legal entities that have registered must have this document.
- Ownership Information of the Business
Business Documents displaying ownership information, particularly in the case of partnerships or joint ventures.
- Customs Details (If Applicable)
If Applicable, it is necessary for companies that import and export goods.
- Power of Attorney Documents (If Applicable)
If someone other than the business owner will represent the company in tax problems, if applicable, power of attorney documents should be provided.
- Club, Charity, or Association Registration Documents
If your company fits one of these categories, these documents are necessary.
- Copy of the Decree
If Applicable for federal or emirate-level government organizations, these documents are necessary.
- Other Relevant Documents
Any records that detail your organization's activities, size, and composition.
- Scanned Copies of Emirates ID and Passport
The manager, owner, and senior management of the company's Emirates ID and passport must be uploaded as scanned copies.
- Scanned Copy of Land/Property Title Deed
For some companies, such as legal companies, clubs, charities, governmental organizations, and independent firms that own property, this document is required, if applicable.
- Accepted File Types and Size
To submit a document, you must use one of the following file types: PDF, JPG, PNG, or JPEG. The maximum size for each file is 5MB.
You Should Know: Corporate Tax Registration in UAE
It is essential to acquire and prepare all the documents indicated above to ensure a smooth and accurate UAE VAT registration process. The registration process is facilitated by proper documentation, which also aids in your company's tax compliance with the UAE tax laws.
Additionally, it's advisable to seek expert advice from Tax Consultant Dubai who has expertise in UAE tax laws. They can assist you in registering for VAT, making sure that your company complies with all legal requirements while preventing possible risks of penalties.
