BAM Advisors are here to streamline the process by completing the VAT Registration, VAT Tax Group & VAT Deregistration for all companies in the UAE.
For UAE resident businesses, the mandatory VAT registration threshold is AED 375,000 and the voluntary registration threshold is AED 187,500. No registration threshold applies to non-resident businesses making supplies on which the UAE VAT is required to be charged.
VAT Registration Services
- Guiding clients through the process of registering for VAT with tax authorities, including preparing necessary documentation, submitting applications, and ensuring compliance with local thresholds and criteria.
- Ensuring compliance with the specific eligibility criteria, such as turnover thresholds or business activity types, for mandatory or voluntary registration.
- Handling follow-up communications with tax authorities to secure VAT registration certificates promptly.
The documents required for VAT registration are:
- Valid Trade License Copy
- Valid Passport copies of the owner or shareholders
- Valid Emirates ID copies of the owner or shareholders
- Contact details such as mobile number and email address
- Complete physical address of the company
- Sample of sales or purchase invoices
- Company Bank Account Details
- Turnover declaration letter. (should be signed and stamped by the owner of the company and must be printed on the company’s letterhead)
- Memorandum of Association (if applicable)
VAT Group Registration Services
In UAE the VAT Group Registration allows for more efficient VAT management, especially for businesses with multiple related entities, by consolidating compliance processes while maintaining control over internal transactions.
In UAE companies may apply for VAT group registration if they meet the following Eligibility criteria:
- Business Activity: Each member must engage in regular business activities within the UAE and operate independently of other members.
- Legal Status: Members must be recognized as legal entities such as companies, government bodies, or other registered organizations. Individuals do not qualify.
- UAE Residency: Members must have a primary or fixed business establishment in the UAE.
- A primary establishment is where key management decisions are made that significantly impact the business.
- A fixed establishment is a place equipped with human and technical resources essential for carrying out business activities.
- Related Parties & Control: Members must be connected both economically, financially, and organizationally, demonstrating common control.
- Usually, this means that one or more members hold a majority ownership (50% or more) of the other members.
- These relationships ensure the entities operate as a unified economic group.
VAT Group Registration Application to the FTA
To establish a VAT group in the UAE, a dedicated application must be submitted to the Federal Tax Authority (FTA). The process involves appointing one company as the Representative Member of the group, with the other companies designated as members.
- The application must be submitted through the portal of the representative member.
- The representative member holds administrative responsibilities, including:
- Filing VAT returns on behalf of the entire group.
- Submitting amendments, adding or removing members.
- All members are jointly liable for accurate filing of VAT returns & VAT payments and compliance.
Required Documents for Submission:
- No Objection Letter: Signed by all member companies, explicitly appointing the representative member to act on their behalf for VAT matters.
- Group Structure: An organizational chart demonstrating common ownership or control relationships among members.
- Group Turnover Declaration: Estimated or actual turnover figure for the entire group, which may impact registration thresholds.
- Upon approval, the individual VAT numbers of the separate companies will be suspended.
- The new VAT number assigned to the group will become the primary VAT registration number for all intra-group and external transactions.
- If the group is dissolved, the supervised VAT number will be suspended, and the original separate VAT numbers will be reactivated.
- The FTA aims to review and process the VAT group registration application within 20 business days.
- During this period, the FTA may:
- Approve the application.
- Request additional information or clarification if needed.
VAT Deregistration Services
De-registration of a VAT Group
In certain situations, it becomes necessary to de-register a VAT group. The representative member is responsible for submitting the application for VAT group de-registration to the FTA.
Circumstances Requiring De-registration:
- Loss of Eligibility: The VAT group no longer meets the criteria to be classified as a group for VAT purposes.
- Member Exit: One or more companies leave the group due to reasons such as liquidation, merger, or other business changes.
- Threshold Non-Compliance: The group’s taxable supplies or expenses fall below the mandatory registration threshold (AED 187,500 in the past 12 months or expected to fall below in the next 30 days), making continued registration unnecessary and non-compliant.
De-registration Process:
- Once the conditions for de-registration are met, the representative member must submit the application within 20 business days.
- It is crucial to apply promptly, as delays in de-registration can lead to administrative penalties imposed by the FTA.
- The de-registration process reverts the individual VAT registration numbers of member companies back into active status if applicable.
- Proper documentation supporting the reasons for de-registration should be maintained in case of review or audit.
