The UAE government has introduced VAT from 1 January 2018. All individuals and companies that meet these thresholds must register for VAT to continue doing business in one of the UAE’s countries. Before starting the process of registering for VAT, an applicant must consider several factors such as whether registration is mandatory or voluntary, whether they are an individual or part of a tax group, etc. Those interested in registering for VAT should visit the FTA’s online portal: to start the VAT registration process.
Some companies operating in the UAE have more than one license and operate as part of a group. Companies wishing to register as a VAT group must meet the following conditions All businesses belonging to the VAT group must have a head office, representative office or authorized branch in the UAE.
All entities belonging to the group must be related to each other:
If a company/individual does not own the shares of all the other companies in the group but controls them by proxy/authorization, the company/individual is classified as a related party of all the companies in the VAT group and can therefore choose the VAT group.
If different businesses choose to register as a VAT group, all businesses belonging to the group must also provide proof of their ownership and control structure within the VAT group and a resolution approved by the board of directors of each member of the group. The resolution must state that the group has appointed the entity (group member) as its representative for the purposes of VAT registration in the UAE.
Important information when submitting bank details for VAT registration purposes
If an entity registers for VAT on its own, it may provide information on its UAE bank accounts. For example, the entity must provide the name of the bank, the name of the branch and the name of the account. If two or more entities wish to register for VAT as a VAT group, details of one bank account (preferably common) for each entity are sufficient to complete the bank account details required for VAT registration. The bank account details you receive from the authorities must be the bank account details of the representative of the tax group.
What support can Bestaxca offers for VAT registration in the UAE?
Bestaxca has a dedicated department that handles tax matters for our clients operating anywhere in the UAE. We have a team of qualified tax professionals who deal with VAT matters and a separate department that provides VAT registration services to our clients in the UAE. We provide our clients with advice and full support for VAT registration anywhere in the UAE.
In the first stage of VAT registration, our VAT registration team will request all the necessary information/documents required for VAT registration in the UAE.
Once you have provided us with all the necessary information/documents that we deem necessary for VAT registration in the UAE, and once you have given the green light, we will start the VAT registration process on the FTA online portal with your email ID.