Online Portal for VAT & Excise Tax Registration
The Federal Tax Authority (FTA) of the United Arab Emirates (UAE) has opened up the Vat enrollment in UAE website for both Excise Tax and also Value-Added Tax (VAT) in UAE. This allows all services that take care of excise goods to register for Excise Tax and also for VAT as well that will commence on 1 January 2018, at 5% price.
Prior to as well as hereafter, a number of Cabinet Decisions have been released in relation to the import tax as well as VAT execution in UAE.
The initial one, the Cabinet Decision No. 37 of 2017 on the Executive Regulation of the Federal Decree-Law No. 7 of 2017 on Excise Tax speaks about who is reliant pay tax obligation when the latter is not worked out.
The 2nd is the Cabinet Decision No. 38 of 2017 on Excise Goods, Excise Tax Rates, as well as the Method of Calculating the Excise Price, which reveals the agreed prices and enters into the cost specifics.
The following is the Cabinet Decision No. 39 of 2017 on Fees for Services provided by the Federal Tax Authority that establishes the fees for the services of FTA for the customers that will be collected.
The last one is the Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE that is for all violations of Federal Law No. 7 of 2017 on Tax Procedures, Federal Decree-Law No. 7 of 2017 on Excise Tax, and also Federal Decree-Law No. 8 of 2017 on VAT.
Do I require to register for VAT or Excise tax obligation in UAE?
If you are running a service in Dubai or any emirate of UAE, you require to sign up for VAT & Excise tax UAE if:
a) For the Federal Excise Tax, every single organization in the UAE that creates, imports or accumulations excise products, or means to do so, is needed to register. The existing excise goods with tax rates are the following:
i) Tobacco and also cigarette products and also energy beverages (100%).
ii) Carbonated drinks (50%).
b) For VAT, the registration is for all firms in UAE that drop under the minimum yearly income of AED 375,000. If they don’t fulfill the minimum annual revenue, a company can still pick to register for VAT if they go beyond the volunteer base that is AED 187,500. On the other hand, if the minimum amount for volunteer registration is exceeded by an organization’ expenditures, they can register voluntarily too. Start-up firms (without turnovers) are encouraged in this kind of possibility.
Procedure & Documents needed for Excise Tax Registration in UAE.
For Federal Excise Tax, those companies that have not registered yet are called for to supply the following:
– Trade License( s) (if suitable).
– Certificate of Incorporation (if appropriate).
– Customs number( s) released by Customs department( s) (if suitable).
– Passport, Emirates ID of the supervisor, proprietor, as well as elderly management.
– Authorized signatory documents.
– Articles of Association/Partnership Agreement/Club or Association Registration/Law or Decree (if applicable).
– Bank Account details.
Treatment & Documents required for VAT Registration in UAE.
For VAT, the files needed depend on the kind of entity (person, included bodies, various other non-corporate bodies, or federal government entity). The typical documents with the abovementioned entities are the following:
– Trade License( s) (if applicable).
– Certificate of Incorporation (if suitable).
– Financial Statements.
– Bank Account information.
– Authorized Signatory papers.
– Passport and Emirates ID of manager, proprietor, as well as elderly management.
As pointed out above, various files are required for different entities. A few other papers not detailed may be needed.
You will be asked to post the copies of these files. The accepted documents types are PDF, JPG, PNG, and JPEG. The data dimension limitation is 2 MEGABYTES each.
Advisory solutions in UAE.
Chaturvedi Associates are among one of the most popular vat consultants in Bahrain (Working as an Audit company in Bahrain)in its area conference different demands as well as needs of its customers running VAT consultancy, Audit company, Accounting and Bookkeeping in the Bahrain, UAE as well as global markets.