Value-Added Tax (VAT) was instituted in the United Arab Emirates (UAE) in 2018. Although some companies are exempt, VAT registration is mandatory for the majority in order to comply with UAE tax regulations. Nevertheless, it is necessary to traverse the registration procedure like a documentary labyrinth. The following is a summary of the critical documents that are required:
Mandatory Documents for VAT Registration UAE:
- Valid Trade License: A valid trade license is an essential requirement for conducting business in the United Arab Emirates. Verify that your trade license is current and has not expired.
- Authorized Signatory Identification: For VAT purposes, present copies of the passports (for non-residents) or Emirates IDs (for residents) of the authorized signatories who can legally represent your business. Additionally, evidence of their authorization (e.g., Board Resolution) may be necessary.
- Contact Information:Provide all of your company’s contact information, such as your phone number, email address, physical address, and P.O. Box.
- Bank Details: Submit a bank letter that confirms your company’s bank account information. This assures proper remittance of any VAT collected.
Additional Documents Depending on Your Business Structure
- Memorandum of Association (MOA): Although not required for sole proprietorships, corporations organized under a legal structure such as a Limited Liability Company (LLC) will be required to provide a copy of their Articles of Association or Memorandum of Association (MOA).
- Turnover Declaration: In order to surpass the current mandatory VAT registration threshold of AED 375,000 per year, businesses are obligated to provide a signed and certified declaration detailing their company’s turnover for the preceding 12 months. This should be inscribed on the letterhead of your company.
Potentially Required Documents
- Sample Invoices: The authorities may, in certain circumstances, request a sample of your duly signed and stamped sales or purchase invoices in order to gain a more comprehensive understanding of your business operations.
- Customs Department Registration: If your company handles customs procedures, you may be required to provide a copy of the customs department’s VAT registration letter.
Remember the following:
It is imperative that all documents be translated into Arabic from their original language to ensure clarity and legibility.
It is highly recommended to regularly consult the Federal Tax Authority (FTA) website or a tax expert for up-to-date information and any particular requirements that may apply to your type of business.
Possessing these documents will facilitate your VAT registration in UAE without a hitch. You can now concentrate on operating your business with assurance, understanding that you are in adherence to tax regulations.