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we can help you to get VAT Registration

We would collect the documents and prepare VAT registration form for you, File yur application and ensure that it is verified and approved. Collect your Tax Registration Number (TRN)

Documents required for VAT registration

Individuals

  • Trade licenses
  • Passport
  • Emirates ID
  • Partnership agreement if applicable (if applicable)
  • Contact information’s
  • Bank account details
  • Financial statements=
  • Custom details (if applicable)

If your business form is Incorporated body (Company), then

  • Trade licenses
  • Certificate of incorporation
  • Articles of association/ Partnership agreement (if applicable)
  • Contact information
  • Bank account details
  • Financial statements
  • Customs details (If applicable)
  • Authorised signatory documents
  • Passport and Emirates ID of Owner or Manger
  • Authorised signatory documents

If your business is a non-corporate body (ie Partnership, Trust, club and Charity), then

  • Trade licenses
  • Certificate of incorporation (if applicable)
  • Club or association registration
  • Contact information
  • Bank account details
  • Financial statements
  • Customs details (if applicable)
  • Authorised signatory documents
  • Passport and Emirates ID of Owner or Manger

For Government entity

  • Law or decree of establishment
  • Contact information’s
  • Bank account details
  • Customs details (if applicable)
  • Authorised signatory documents

VAT rate applicable for business


   5% is the tax rate, but there are commodities exempted.

   Guidelines on exemptions
  The supply of goods and services in certain industries, such as Healthcare, Education, Real Estate and Transport, will be subject to either the zero-rate or exempted. (Note that this may differ throughout the GCC.

The supply of goods outside the GCC are subject to the zero-rat

The importation of goods are subject to the zero-rate in the case that the goods are exempted or zero-rated in the UAE

The supply of e-commerce services will be subject to the zero-rate when supplied to a recipient who is not a resident nor present in the GCC at the time that the services are performance

The supply of international transportation of passengers and/or goodsincluding ancillary transport services is subject to zero-rate

The supply of local passenger transport services in a qualifying vehicle, qualifying vessel or qualifying aircraft will be exempt

Services associated with facilitating outbound travel packages (to destinations outside the GCC) shall be zero-rated

How to file VAT returns

You have to file Details of Purchase and sales on a quarterly basis. The due date for filing the return is 28the of the next month for every quarter. The return filing procedures can be done by us.

How do we  help you in return filing? 

Our representative will directly come and collect all the documents related to purchases sales and other routine transactions.

You only have upload all the documents through a mobile application in a simple process (Take pictures and upload)

Our professional team will prepare your tax return and show you before filing the return

Once you confirmed the return, we will upload the return and will provide you the acknowledgement.

What are the documents to be maintained

Books of accounts

  • A. Books of Accounts and any other information necessary to verify entries including but not limited to
    • Annual Accounts
    • General Ledger
    • Purchase Day book
    • Invoice issued or received
    • Credit note and debit note
  • B. Additional records required for specific taxes (Different taxes may require different records to be kept in order for tax payers to be compliant, for example, a VAT account)
  • C. Any other information as direct by the FTA that may be required in order to confirm, the person liability to tax, including any liability to register
Taxable person for VAT must in addition retain the following records for at least 5 years
  • A. Invoices, Credit/Debit notes
    • All tax invoices and alternative documents related to receiving the goods or services’
    • All received tax credit notes and alternative documents received
    • All tax invoices and alternative documents issued
    • All tax credit note and alternative documents issued
  • Records of
    • All supplies and import of goods and services
    • Exported Goods and services
    • Goods and services that have been disposed of or used for matters not related to business
    • Goods and services purchased for which the input tax was not deducted
  • C. VAT Account
    • VAT Due on taxable supplies (Incl those pursuant the reverse charge mechanism)
    • VATT Due after error correction or adjustments
    • VAT Deductible after error correction or adjustments
    • VAT Deductible for supplies or import

Whether I have to appoint an accountant to keep all the documents?

No. A full time accountant is not required. You don’t have to pay for a full time employee. We  can assist you in this regards. We will provide you a simple mobile application through which you only can manage the book keeping.

What is VAT Invoices?

  • Which is a written documents which records the details of a taxable supply made
  • Only a VAT Registered business can issue a tax invoice
  • Invoice issued and received should be kept for a minimum of 5 years
  • Invoices must be issued within 14 calendar days of the date of supply
  • Where the invoice amount is a fraction of a fils, the amount should be rounded to the nearest fils

What are the details to be mentioned in VAT invoices?

  • A sequential number which uniquely identify the documents
  • The date of issue of invoices
  • The time of supply( if only different from the invoice date)
  • The Name, address and TRN of the supplier
  • For each description, the quantity of goods or extent of services supplied, the rate of VAT and amount payable, expressed in UAE Dirham
  • The total amount of VAT expressed in UAE Dirham together with the rate of exchange applied and the source of that rate

How do we can help you in Book Keeping?

  • We vatfile.com can help you to maintain books of accounts required for VAT compliance
  • Our representative will directly come and collect all the documents related to purchases sales and other routine transactions. or
  • You only have upload all the documents through a mobile application in a simple process (Take pictures and upload)
  • We will file your VAT return on periodical base. Also we will provide you a report of sales and purchase on a periodical interval

Non Compliance - Penalties

Adminstrative penalties which may up to 3 time of amount of tax involved
  • Tax evasion penalties which may extended to 5 times of amount of tax involved
    • Administrative Penalties (Not less than AED 500 and not more than 3 times the amount of tax for which the penalty was levied)
      • Administrative penalties are intended to address non-compliance, and encourage compliance.
      • The FTA has the power to waive or reduce penalties at its discretion (e.g. taxable person has a reasonable excuse for the error).
      • Few examplesof administrative violation:
        • If the person conducting a business fails to keep the required records and other information;
        • If the person conducting a business fails to submit the data, records and documents related to tax in Arabic language when requested by FTA;
        • If the taxable person fails to submit a registration application within the period required.
    • Tax evasion penalties (Up to 5 times the relevant tax at stake)
      • The FTA can issue penalties for tax evasion
      • Tax evasion is where a person uses illegal means to either lower the tax or not pay the tax due, or to obtain a refund to which he is not entitled under law.
      • The imposition of a penalty under tax law does not prevent other penalties being issued under other laws
      • Few examplesof instances of tax evasion:
        • ” aria-hidden=”true”>Where a person deliberately provides false information and data and incorrect documents to the FTA;
        • Where a person deliberately conceals or destroys documents or other material that he is required to maintain and provide to the FTA.

      Deadlines

    • FTA announced fines for those business that does not comply with registration deadline, you can view it in FTA website

      What happened if you don’t complete registration on time?

      You can register it FREE through FTA website or contact vatfile.com sales person, who can help you get registered with Federal Tax Authority with no additional cost

      How should you register?


      1. Businesses with a turnover exceeding AED 150m should apply for registration before October 31, 2017.
      2. Businesses with a turnover exceeding AED 10m should apply for registration before November 30, 2017.
      3. All other business entities should submit their application before December 04, 2017 so as to minimise the risk of not being registered in time for VAT go-live.
      UAE Federal Tax Authority already published dates for completing VAT registration for businesses that earns more than AED 375,000/- in a year.


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