Tips for Value Added Tax (VAT) registration in the UAE

Tips for Value Added Tax (VAT) registration in the UAE

Provide true information

Do not overstate expenses or revenues for the sake of getting the Tax registration Number (TRN). This is an illegal practice that could be easily detected later in any compliance check or tax audit conducted by the FTA where you will be required to provide supporting documents and bank statements.
Lookup a professional consultation

We strongly recommend that you seek a professional consultation from a Tax Agent to help you with the tax registration. I have seen many cases of adverse implications due to wrong applications like miscalculation of the registration threshold, missing the deadline of registration, and failing to understand the different choices, which results in late approval. If you need to do it yourself, please read Federal Tax Authority detailed guide (REGISTRATION, AMENDMENTS & DEREGISTRATION).

Get prepared to charge Value Added Tax and file your returns

Once your application is approved by the Federal Tax Authority, you have to account for VAT starting from the effective date of registration as shown in your Tax Registration Number (TRN) certificate.
Accounting for VAT includes charging VAT by issuing correct tax invoices, keeping track of VAT paid on expenses, and having a suitable system to help you generate a VAT return report. Simply you must know your all tax obligations.

Do good and brilliant bookkeeping

Maintain your accounting records and all supporting documentation. This will help you to assess your registration threshold at end of each month means a historical test for the last 12 months. Bookkeeping will organize your records to taxable, non-taxable, zero-rated, exempt. It will also help you if you are allowed to recover any Value Added Tax paid on purchases before the Value Added Tax registration.

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