Understanding the Whole TAX Registration Process

Understanding the Whole TAX Registration Process

The UAE has been tax-free for long, and the imposition of VAT on goods and services is the recent inclusion in the whole spectrum. This tax is popularly known as Value Added Tax (VAT). The tax registration number (TRN) is the registration number allotted to a person who is registered for VAT in the country by the Federal Tax Authority. This tax was imposed in 2018; it is a 15 digit identification number from which the federal tax authority differentiates a person from the rest of the folks. A person must mention this number in various government documents such as tax invoices, VAT returns, tax credits, etc.

Tax registration in UAE allows the government to keep track of all transactions made by businesses or individuals. Only the entities (both Natural and Legal) having a TRN is liable to charge VAT from the customers.

Criteria for TRN Registration

A business owner has to pay the government the amount of taxes that he receives from its customers. A refund is also received from the government on the tax that has been paid to the suppliers. The registration of VAT is optional for all those businesses whose supplies and imports are more than AED 187,500 and less that AED 375,000/-per annum. It is mandatory for the business to register for VAT if its taxable supplies and imports exceed AED 375,000 per annum. The foreign businesses and investors will also recover the VAT that was paid by them upon visiting the UAE.

The Application Process for TRN

Login to your E-services Account

Open the portal of the federal tax authority and create your account for which you have to give the required information like email and password. After doing that, one receives the login information. In the UAE government, it is rather easy to register for VAT through an online portal.

The Step for Registration

After logging into the account, click on the button saying “register for VAT.” After clicking the button, one will be taken to a page displaying a VAT guide which would give all the information regarding VAT in UAE. Post, reading the guidelines thoroughly, click the checkbox that says “you conform to the guidelines,” and click on “proceed’.

Filling the Registration Form

A VAT application form will come up after clicking on “proceed’. The form consists of a total of 8 sections that have to be filled with the necessary details. The next page will appear after the completion of the first page. After filling up all the details, click on “Submit for Approval.” You will get an approval mail, and a TRN number with a VAT certificate would be sent. As per the regulation the FTA will issue TRN within 21 working days after submitting the complete registration.

Verification of the TRN Number

The following steps need to be followed for the verification of TRN Number

  • One has to log in on the E-services portal on the FTA website with the login credentials.
  • Click on “TRN verification,” and the verification page will open up.
  • Entering the TRN number in the search box will showcase the results for the TRN number.

Verification of the Tax Registration Number (TRN) is a simple process and has the potential to save a business from losses due to bad credit invoices.

Concluding the Scene

If you are in need of any assistance and support pertaining to the TRN registration, you can always contact us at info@aaccounting.me.

AUTHENTIC ACCOUNTING: Tax specialist in Dubai provides supports at all the stages.

Register Your Business for VAT in Three Easy Steps

Register Your Business for VAT in Three Easy Steps

If you’re planning to start your business in the UAE region or running one already, you may be required to register for Value Added Tax (VAT). It is important for computation of taxes that your company is liable to pay to the government. Also, being registered under the VAT law implies that a business is recognized by the government as a supplier of Goods and Services and is sanctioned to collect VAT from their clients and pass on the same to the government. Only the businesses that are registered with

VAT are allowed to do the following:

  1. Levy VAT on the supply of goods and services that is taxable
  2. Get to claim Input Tax Credit for the VAT levied on their purchases, which will be subtracted from VAT liability on sales
  3. Pay VAT collected from the clients to the government
  4. Regular filing of VAT return

Registering for VAT is a fairly easy process but if you’ve been wondering how to register for vat in UAE, let us explain how!

Create an e-Service Account

Prior to proceeding with online registration of VAT, you have to generate an E-Service account with FTA. The entire process is quite similar to setting up an account with other online accounts such as Gmail, Yahoo, Hotmail, etc. To begin with, login to ‘https://eservices.tax.gov.ae’ and click on the Sign Up button that is on the right-side upper corner of the screen. Thereafter, you’re supposed to follow the below mentioned steps:

  1. Once you click on Sign up, you’d be required to furnish several details such as your business’s e-mail Id, password, along with the security code and security question in the sign-up format.
  2. After that you would get an email on your registered email ID. You would have to verify your account through your email address.
  3. Once the account is verified, you can Log in to your account anytime you want using your credentials (User Name and password).

Register Your Business for VAT

Once you’ve created your online account with FTA, log in to it. Next, you’ll be directed toward a Guide on Getting Started. It is advisable to read up the guide which will further help you to get through the following steps quite conveniently. After this, start filling up the VAT registration form, which has different sections. You would be required to fill up all the information asked and finally submit it.

The entire process of VAT registration in UAE is needs to be done with at most care and caution. An erroneous/incomplete VAT registration will delay the entire certification process and at times businesses unable to move forward in business without VAT registration number. If you need any more information, get in touch with professionals who could help you out with it.

In case you need any assistance and support on Vat Registration in UAE, while doing the registration please contact us info@aaccounting.me.

AUTHENTIC ACCOUNTING: Vat Consultants in Dubai, provides supports at all the stages of the VAT in UAE .

ESR – Economic Substance Regulation- UAE

ESR – Economic Substance Regulation- UAE

Economic Substance Regulation- UAE

Why ?

The UAE introduced Economic Substance Regulations to honour the UAE’s commitment as a member of the OECD Inclusive Framework on BEPS, and in response to a review of the UAE tax framework by the EU which resulted in the UAE being included on the EU list of non-cooperative jurisdictions for tax purposes (EU Blacklist). The issuance of the Economic Substance Regulations on 30 April 2019 (the Regulations), and the subsequent release of the Guidance on the application of the Regulations on 11 September 2019, was a requirement for the removal of the UAE from the EU Blacklist on 10 October 2019. The purpose of the Regulations is to ensure that UAE entities that undertake certain activities (see question 4) are not used to artificially attract profits that are not commensurate with the economic activity undertaken in the UAE.

Who is subject to the Regulations?

The Regulations apply to UAE onshore and free zone companies, branches, partnerships, and other UAE business forms (referred to as Licensees) that carry out any of the following Relevant Activities. 

● Banking Businesses

● Insurance Businesses

● Investment Fund Management Businesses

● Lease-Finance Businesses

● Headquarter Businesses

● Shipping Businesses

● Holding Company Businesses

● Intellectual Property Businesses

● Distribution and Service Centre Businesses

Who needs to notify and by when?

Licensees that undertakes a Relevant Activity (irrespective of whether the Licensee qualifies for an exemption under the Regulations or has earned income from the Relevant Activity during the relevant financial period) need to submit a simple notification with its Regulatory Authority. Notifications for the financial period 2019 can be filed on or after 1 January 2020 and before the Deadline specified by the Relevant Regulatory Authority.  Most of the Authorities set the notification deadline as 30 June 2020.

Who needs to file an economic substance return and by when?

Only Licensees that earn income from a Relevant Activity during the relevant financial period and that are not exempt from the Regulations are required to demonstrate economic substance in the UAE and file an economic substance return. Economic substance returns must be filed within 12 months from the end of the relevant financial period.

Any penalties for non-compliance?

Penalties ranging from AED 10K to 300K may be applied for various non-compliance instances and Trade / commercial licence could be suspended, withdrawn or not renewed.

What Team Authentic Offers to its clients?

We at Authentic provides end to end bespoke accounting and tax solutions to our clients.  During this new phase of Regulations we help our clients in understanding and navigating through the whole process from the basic ESR testing to the Economic Substance Return.  For support please contact our office via our regular contact options, but in case you need personalized support please contact our relationship manager on +97156 5484635

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