• Assistance with Documentation: Quick Time helps businesses gather and prepare the necessary documents for VAT registration.
• Online Registration: We provide guidance on completing and submitting the online VAT registration form through the Federal Tax Authority (FTA) portal.

VAT Registration Services in the UAE

1. Valid Email Address & UAE Contact Number:

   • Purpose: Used for official communication with the FTA regarding VAT registration and compliance matters.
   • Details Needed: A functional email address and an active contact number based in the UAE.

2. Copy of Valid Trade License:

   • Purpose: Proof of legal operation within the UAE.
   • Details Needed: A scanned copy of the current and valid trade license issued by the relevant UAE authorities.

3. Certificate of Incorporation/ Registration Certificate (if applicable):

   • Purpose: Verifies the legal existence and registration of the company.
   • Details Needed: A copy of the certificate issued upon incorporation or registration of the company, if applicable.

4. Copy of Emirates ID and Passport of the Owner/Partners & Manager:

   • Purpose: Identification of the key individuals involved in the business.
   • Details Needed: Scanned copies of the Emirates ID and passport for the business owner, partners, and manager.

5. Contact Number and Email of Authorized Signatory/Manager:

   • Purpose: Designates the person responsible for VAT matters and communication with the FTA.
   • Details Needed: Contact number and email address of the authorized signatory or manager.

6. Memorandum of Association (MOA):

   • Purpose: Provides details about the business structure, ownership, and scope of activities.
   • Details Needed: A copy of the MOA outlining the company’s framework and agreements among partners.

7. Contact Details of Company (Complete Address & P.O Box with Emirate):

   • Purpose: Establishes the physical location of the business for correspondence and verification.
   • Details Needed: Complete physical address, including the P.O. Box and the specific emirate where the business operates.

8. Primary Bank Account Details Including IBAN:

   • Purpose: Facilitates VAT payments and refunds.

Filing Value Added Tax (VAT) returns in the UAE is a critical compliance requirement for businesses registered under the VAT regime. Implemented on January 1, 2018, VAT in the UAE is governed by the Federal Tax Authority (FTA). The process of VAT return filing involves declaring the VAT collected on sales (output tax) and the VAT paid on purchases (input tax) during a specific tax period.

Filing Frequency and Deadlines

1. Filing Frequency:

   • Quarterly: Most businesses are required to file VAT returns quarterly.
   • Monthly: Businesses with higher turnover may be required to file monthly.

2. Deadlines:

   • Quarterly Returns: Due by the 28th day of the month following the end of the tax period.
   • Monthly Returns: Due by the 28th day of the following month.
   • If the 28th falls on a weekend or public holiday, the deadline is the next working day.

Penalties for Non-Compliance

1. Late Filing: AED 1,000 for the first instance, and AED 2,000 for each subsequent instance within 24 months.
2. Late Payment: 2% of the unpaid tax immediately, 4% after seven days, and a monthly penalty of 1% on the unpaid tax.

Value Added Tax (VAT) compliance in the UAE is essential for businesses to operate within the legal framework established by the Federal Tax Authority (FTA). VAT was introduced in the UAE on January 1, 2018, with a standard rate of 5%. Ensuring VAT compliance involves various obligations that businesses must meet to avoid penalties and maintain good standing with the tax authorities.

Key Aspects of VAT Compliance

1. VAT Registration:

   • Mandatory Registration: Businesses with an annual turnover exceeding AED 375,000 must register for VAT.
   • Voluntary Registration: Businesses with an annual turnover between AED 187,500 and AED 375,000 can voluntarily register.
   • Non-resident Registration: Non-resident businesses that make taxable supplies in the UAE must register for VAT, regardless of turnover.

2. Tax Invoices:

   • Issuance of Tax Invoices: Businesses must issue tax invoices for all taxable supplies, including specific details such as the TRN (Tax Registration Number), invoice date, description of goods/services, VAT amount, and total amount payable.
   • Invoice Format: Invoices must follow the format prescribed by the FTA to be considered valid for VAT purposes.

3. VAT Returns:

   • Filing Frequency: VAT returns are generally filed quarterly, although businesses with higher turnover may need to file monthly.
   • Due Date: VAT returns must be filed by the 28th day of the month following the end of the tax period. If the 28th falls on a weekend or public holiday, the deadline is the next working day.
   • Accurate Reporting: Businesses must accurately report all taxable sales and purchases, ensuring that all VAT collected and paid is correctly accounted for.

4. VAT Payments:

   • Payment Deadlines: VAT payments are due on the same day as the VAT return filing deadline.
   • Methods of Payment: Payments can be made through various methods, including bank transfer, e-Dirham, or other options provided by the FTA.

5. Record Keeping:

   • Retention Period: Businesses must retain all VAT-related records for at least five years.
   • Required Documents: Records include tax invoices, credit notes, debit notes, import/export documents, accounting books, and other relevant documentation.

6. Input Tax Recovery:

   • Eligibility: Businesses can recover VAT paid on purchases and expenses that are used for making taxable supplies.
   • Documentation: Proper documentation, such as valid tax invoices and import declarations, is required to claim input tax credits.

7. Adjustments and Corrections:

   • Error Correction: If errors are identified in previous VAT returns, businesses must correct them in the next VAT return or by submitting a voluntary disclosure form if the error exceeds AED 10,000.
   • Adjustments: Adjustments for bad debts, credit notes, and other circumstances must be accurately recorded and reported.

8. VAT Audits:

   • FTA Audits: The FTA may conduct audits to ensure compliance. Businesses must cooperate and provide all requested documents and information.
   • Preparation: Regular internal audits and proper record-keeping help businesses prepare for potential FTA audits.

9. Penalties for Non-Compliance:

   • Late Registration: AED 20,000
   • Late Filing of VAT Return: AED 1,000 for the first time, AED 2,000 for subsequent instances within 24 months
   • Late Payment of VAT: 2% of the unpaid tax immediately, 4% after seven days, and a monthly penalty of 1% on the unpaid tax
   • Incorrect Tax Returns: Penalties vary based on the nature and severity of the error.

1. VAT Registration & Related Compliances:

   • Registration Assistance: Guidance through the VAT registration process, ensuring that all required documents are prepared and submitted accurately.
   • Compliance Checks: Regular checks to ensure ongoing compliance with VAT regulations, including updates to business activities and turnover thresholds.
   • Renewals and Amendments: Assistance with renewing VAT registration and making necessary amendments to registration details as business operations evolve.

2. Initial Consultancy to Set Up Process for Invoicing:

   • Invoice Format: Setting up VAT-compliant invoice templates that include all required details such as TRN, invoice date, description of goods/services, VAT amount, and total payable amount.
   • Training: Training staff on how to issue VAT-compliant invoices and handle various transaction types (e.g., standard-rated, zero-rated, exempt).

3. Preparing & Filing VAT Returns Online:

   • Periodic Filing: Preparation and filing of VAT returns online as per the periodicity specified by the FTA (monthly or quarterly).
   • Data Compilation: Compiling sales and purchase data, ensuring all transactions are accurately recorded.
   • Submission: Timely submission of VAT returns to avoid penalties.

4. Suggestions on Reducing Tax Burden:

   • Tax Planning: Identifying avenues to legally reduce the tax burden, such as optimizing input tax credit claims and structuring transactions efficiently.
   • Exemptions and Zero-Rating: Advising on transactions that qualify for exemptions or zero-rating under UAE VAT laws.

5. Clarifications on Special Transactions from Designated Zones:

   • Designated Zones: Providing clarity on VAT applicability for transactions occurring within designated zones, which have special VAT rules.
   • Compliance: Ensuring compliance with the specific VAT treatments required for designated zones.

6. Clarifications on VAT Applicability and Treatment of Specific Transactions:

   • Special Transactions: Guidance on the VAT treatment of complex or unique transactions, such as mixed supplies or composite supplies.
   • Documentation: Ensuring proper documentation and correct VAT treatment to avoid issues with the FTA.

7. Clarifications on Transactions with Other GCC Countries:

   • GCC Transactions: Explaining VAT treatment for transactions involving other GCC countries, considering the GCC VAT Agreement and local VAT laws.
   • Cross-Border Transactions: Ensuring correct VAT application for cross-border supplies and imports/exports within the GCC.

8. Verification of Input Tax Credit Claims:

   • Input Tax Verification: Reviewing input tax credit claims to ensure they are valid and properly documented.
   • Offsetting Liability: Verifying input tax claims to offset against output tax, thereby reducing the final VAT liability.

9. Evaluation and Identification of Exempt Transactions:

   • Exemptions: Identifying transactions that are exempt from VAT under UAE law.
   • Compliance: Ensuring that exempt transactions are properly documented and reported to the FTA.

10. Reverse Charge Mechanism (RCM):

    • RCM Calculation: Calculating VAT payable under the reverse charge mechanism for applicable imports and services.
    • Claiming VAT: Assisting with claiming input tax credits for VAT paid under RCM to ensure proper offsetting.

11. Assistance in VAT Payments to FTA:

    • Payment Process: Guiding businesses through the VAT payment process to the FTA.
    • Timely Payments: Ensuring VAT payments are made on time to avoid penalties.

12. Dealing with FTA for VAT Refunds & Assessments:

    • Refund Claims: Assisting businesses in claiming VAT refunds from the FTA, including preparing necessary documentation.
    • FTA Assessments: Providing support during FTA assessments or audits, including preparation and submission of required documents.

13. Filing Voluntary Disclosures:

    • Voluntary Disclosure Preparation: Assisting with the preparation and filing of voluntary disclosures to correct errors in previously submitted VAT returns.
    • Compliance: Ensuring that voluntary disclosures are accurate and comply with FTA requirements to mitigate penalties.