VAT Certificate in the UAE: A Comprehensive Guide [2024]
VAT Certificate is a crucial document for businesses engaged in taxable activities. Issued by the Federal Tax Authority (FTA), this certificate validates a company’s registration for Value Added Tax (VAT). It serves as proof that the business is compliant with VAT regulations and authorized to collect and remit taxes. Displaying the VAT Certificate is mandatory, enhancing transparency in commercial transactions. Timely application and adherence to regulatory requirements are essential to obtain and maintain this certificate, avoiding penalties.
As a VAT consultant, we emphasize its significance for businesses, ensuring seamless compliance and fostering trust in the UAE’s dynamic economic landscape.
What is the VAT Certificate in UAE?
VAT registration is a mandatory step towards obtaining a VAT certificate for companies and individuals doing business in the UAE.
The VAT Certificate UAE is a document that serves as an official confirmation that a business entity is registered under the VAT law for tax collection at every step of product development.
This certificate is the final step in the VAT registration process. The document is issued by the Federal Tax Authority and carries a unique number referred to as Tax Registration Number, often referred to as (TRN), that is evidence of the entity having been already registered for VAT.
You receive it once your VAT registration is completed successfully.
The VAT certificate contains the following important information:
- Name, registered address and telephone number of VAT registrant
- TRN number
- Effective registration date
- First VAT return period and VAT return due date
- Start and end dates of tax periods
VAT Registration Certificate: How to Apply
In the UAE, businesses whose annual turnover exceeds the mandatory registration threshold of AED 375,000 and the voluntary registration threshold of AED 187,500 are allowed to apply for VAT registration.
How To Get VAT Certificate From (FTA) Portal
You can do it only online on the FTA portal and after you complete the required registration information, you can apply for the VAT Registration Certificate.
Here is how you can do that.
– First, you have to create an e-Service account with FTA. You need to sign up, providing your e-mail details, and create a user name and password.
– To apply for VAT registration, you need to login into your e-Service account using your login credentials and click on the Register for VAT button to start the registration process.
– You should read the VAT Getting Started Guide to get a better idea of certain important requirements and the information you should have to provide.
– You have to follow certain steps – you need to complete the registration form that contains eight sections, such as:
- About the applicant
- Details of the business/entity to be registered
- Contact details
- Banking details
- Business relationships (optional)
- About the VAT registration
- Declaration
- Review & submit
You can track your progress as you fill out the form. You need to fill all the section of online form. Keep in mind that you can move to the next sections only when you fill out all the mandatory fields of the current section.
All of them are marked with a red asterisk (*) if one or some of the mandatory fields are not filled out.
The portal is designed to alert you with a pop-up message indicating the relevant fields where you need to enter your details.
When you finish completing the registration form, you need to review all the details in all the sections, verify them, and complete the registration process by clicking the Submit for Approval button.
Remember: you should submit only if you are certain that all of the information is correct.
How To Register For VAT in UAE
VAT registration is not obligatory for all businesses operating in the UAE. However, businesses are required to register for VAT in the UAE if their taxable supplies and imports surpass AED 375,000.
Alternatively, businesses have the option to voluntarily register for VAT if their taxable supplies and imports exceed AED 187,500.
For VAT purposes, the UAE Federal Tax Authority (FTA) defines taxable supplies as:
“A supply of goods or services made by a business in the UAE that may be taxed at a rate of either 5% or 0%. Imports are also considered in this context, if a supply of such goods or services would be taxable if made within the UAE.”
In essence, VAT is collected by businesses from their customers and remitted to the government. VAT-registered businesses can also reclaim any VAT paid to their suppliers from the government.
Required Documents and Forms for VAT UAE
It is imperative to compile the following information in a suitable format and integrate it into your online application:
1. Valid trade license(s)
2. Passport/Emirates ID of the authorized signatory(s)
3. Proof of authorization for the authorized signatory(s)
4. Contact information
5. Bank letter validating the bank account details of the applicant
Depending on the registration basis, additional pertinent documents may be required:
For taxable supplies (applicable to all legal types except Federal and Emirate Government):
– Audit report (audited or non-audited financial statement)
– Self-prepared calculation sheet, including details to compute taxable/zero-rated supplies based on financial records
– Revenue forecast with supporting evidence (e.g., Local Purchase Order or Contract)
– Monthly turnover declaration for specified periods, signed and stamped by the authorized signatory on the entity’s printed letterhead
– Supporting financial documents (e.g., invoices/LPOs/contracts/title deed/tenancy contracts)
For taxable expenses (applicable to all legal types except Federal and Emirate Government):
– Audit report (audited or non-audited financial statement)
– Expense budget report
Additional documents may include:
– Articles of Association/Partnership Agreement (if applicable)
– Certificate of Incorporation (if applicable for Legal Person)
– Documents showing ownership information of the business
– Customs details (if applicable)
– Power of Attorney documents (if applicable)
– Club, charity, or association registration documents and supporting evidence (applicable if you selected “Legal person – Club, Charity, or Association”)
– A copy of the Decree (applicable if you selected “Legal person – Federal UAE Government Entity” or “Legal person – Emirate UAE Government Entity”)
– Other relevant documents providing information about your organization, its activities, and size (applicable if you selected “Legal person – Other”)
– A scanned copy of the Emirates ID and passport of the manager, owner, and senior management
– A scanned copy of the land/property title deed (applicable if you selected “Legal Person – Incorporate/Legal Person – Club or Association/Legal Person – Charity/Legal Person – Federal UAE Government Entity/Legal person – Emirate UAE Government Entity/Natural Person”)
How to Download VAT Certificate in UAE
So how to get your certificate? Here is the Updated procedure.
How to Get a VAT Registration Certificate through EmaraTax?
To get your VAT Registration certificate if you’ve been a taxpayer before, follow these simple steps:
1. Log in to the EmaraTax Platform using your Emirates ID, UAE Pass, or your taxpayer account.
2. Once you’re in the dashboard, you’ll find the VAT registration certificate under the “My Correspondences” section of your Taxable Person account.
3. Click on the certificate, and then download it in PDF format.
Important note: If you’ve used the system before and your tax registration certificate wasn’t previously accessible as a PDF in your dashboard, you won’t find it in your EmaraTax dashboard.
In this situation, to obtain an updated registration certificate, you’ll need to submit a VAT registration amendment application through EmaraTax. This application should include any updated information, such as your trade license, Emirates ID, contact details, and so on. Your registration certificate will be issued once the FTA (Federal Tax Authority) approves your application.
How to download the VAT return in Emaratax?
Currently, the FTA permits the download of an acknowledgment exclusively for submitted returns in EmaraTax.
To accomplish this:
- Log in to Emaratax.
- File for VAT Returns, ensuring the inclusion of the necessary documents.
- Fulfill the payment process.
- Following the submission of your VAT return, locate the acknowledgment screen.
- Click and download the acknowledgment screen.
Furthermore, the FTA will dispatch an email to verify the submission of your refund in EmaraTax.
Do you need help with registering your business for VAT and getting the tax certificate?
Contact us to schedule a free consultation to learn how we can help you to register for VAT and ensure compliance with the VAT rules and regulations.
Learn More about What We Offer
You can benefit from our comprehensive management consulting and business advisory services in UAE.
Beaufort Associates has a great team of experienced VAT consultants that can assist our clients in applying for VAT Registration and getting VAT Certificate. We also offer assistance with accounting and bookkeeping.
Our experts are dedicated to providing you with world-class services tailored to the specific needs of your business.
We will provide you with professional advice to help you understand the taxation system and ensure that you always remain compliant with VAT laws in UAE. We also offer the necessary accounting and invoicing guidelines under VAT and support for preparing and filing the first VAT return.
Contact us to request a free initial consultation today!
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The information provided herein is for the general information of the user and is provided in good faith. We make no representation or provide warranty of any kind, express or implied, regarding the adequacy, suitability, validity, or completeness of the information. Our advice in regard to UAE corporate tax and value added tax is based on our understanding of the relevant laws and the regulations issued. We cannot be held responsible for new regulations and/or interpretation of existing regulations by the FTA that is not consistent with our advice. Under no circumstance shall we have any liability to any user of this information or to third parties for any loss or damage of any kind incurred as a result of the use or reliance of this information.
