Registration is encouraged to avoid the risk of missing the January 1, 2018, deadline, which would entail the Administrative Penalties stipulated in Cabinet Decision No. (40) of 2017.
The Federal Tax Authority (FTA) has invited all businesses to register for the Value-Added Tax (VAT) before January 1, 2018, following the completion of first phase of registration.
The Authority revealed that the VAT registration procedure is free of charge and can be completed online via the e-Services portal on the FTA website: eservices.tax.gov.ae. VAT is set to come into effect in January 1st 2018 as per Federal Decree-Law No (8) of 2017, issued by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE.
To register, businesses must provide the following information: Applicant details, including entity and activity details, trade licenses and manager’s details. Contact information is also required, as well as the documents of the authorised signatory, including scanned copies of their Emirates ID and passport.
The FTA reemphasized that a business will be required to register if the total value of its taxable supplies made within the UAE exceeds the mandatory registration threshold of AED375,000 over the previous 12-month period.
Taxable supplies include all supplies that are made in the UAE, whether subject to 5% or zero-rated tax under Article (45) of Federal Decree Law No (8) of 2017, excluding supplies exempted under Article (46) of Federal Decree Law No (8) of 2017. Additionally, all goods or services imported from abroad are considered taxable supplies.
The law defines a “supply” as any supply of goods or services in the UAE for consideration by any person in the course of conducting business.
All businesses must submit an application for registration as soon as possible, the FTA cautioned, in order to avoid the risk of missing the January 1, 2018, deadline, which would entail the Administrative Penalties stipulated in Cabinet Decision No. (40) of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.