Learn how to register for VAT in the UAE with BMS Auditing. From EmaraTax account setup to post-registration compliance, our experts ensure full FTA compliance.
Value Added Tax (VAT) registration is a critical step for businesses in the United Arab Emirates (UAE) to remain compliant with the regulations laid down by the Federal Tax Authority (FTA). Knowing the VAT registration process and the specific timelines involved prevents businesses from incurring penalties and keeps the business running smoothly.
BMS Auditing provides a comprehensive support system to assist you in going through the VAT registration and all other subsequent compliance processes smoothly and quickly.
What is VAT?
VAT is a value-added tax imposed on the product or service value at every step of the supply chain. Implemented in the UAE in 2018, VAT is part of the government's drive towards diversification of revenue and ensuring long-term economic sustainability.
Who Must Register for VAT?
Companies must register for VAT if taxable revenue exceeds the AED 375,000 threshold. Voluntary registration is also possible for companies with supply of over AED 187,500. Companies providing exempt supplies or in designated free zones may enjoy the benefits that come with meeting certain exemption criteria.
Process of VAT Registration: Main Steps
- Document Gathering
Companies need to obtain necessary documents, such as trade licenses, accounting records, and Emirates ID or passport copies of the authorized persons.
- EmaraTax Account Creation
Registration is completed on the FTA online portal. Companies need to create an EmaraTax account by completing the registration using correct business information.
- Application Submission
Once the application form is completed, the application is submitted through the FTA portal. The FTA can ask for more details during the review process.
- VAT Certificate Issuance
Businesses are issued a VAT registration certificate upon approval, attesting to their registration and compliance.
VAT Group Registration
VAT group registration is an option for qualifying businesses, where several entities under common control are registered as a single taxable person. This eases tax administration and improves efficiency.
Why Timely Registration Matters
Delays in registering for VAT results in a penalty of AED 10,000 for non-compliance. It's crucial for companies to initiate the process immediately if they hit the threshold or qualify.
Post-Registration Compliance
Once registered, companies are required to comply with all subsequent VAT compliance processes which include timely return filing, correct record-keeping, and all reporting as stipulated by FTA.
How BMS Auditing Supports Your VAT Registration Process in the UAE
- Professional Advisory
BMS Auditing provides professional consultation tailored to your business requirements. Our tax professionals review your operations and advise on whether mandatory or voluntary registration applies.
- Preparation of Documents
We prepare all documents required for a smooth VAT registration process—ensuring accuracy and preparedness for submission.
- FTA Portal Support
From account setup to VAT application form completion, our experts guide you through the FTA's portal smoothly and accurately.
- 4. Application Handling & Follow-up
BMS Auditing takes care of the complete submission of applications and deals with the FTA on your behalf, taking care of any follow-ups or clarification requirements.
- Group Registration Guidance
If your company is eligible for VAT group registration, we assess for eligibility, provide documentation assistance, and enable group submission to the FTA.
- Timely Execution
We stress meeting timely deadlines. Our proactive assistance ensures that you get registered within the stipulated period, without incurring penalties.
- Continuous Support
In addition to registration, BMS Auditing also provides continuous support for VAT filings, audit preparation, record keeping, and reviewing compliance.
BMS Auditing: Seamless Compliance Personified
BMS Auditing makes VAT registration and compliance a walk in the park for you, allowing you to concentrate on other core business tasks for optimum productivity. Our experienced tax experts keep you compliant, ensuring that you fulfill all your tax obligations as per UAE law.
Call us today and engage UAE’s top tax experts!
