VAT Registration- Here is What You Need to Be Aware Of

VAT registration in Abu Dhabi is required for businesses with a turnover of more than AED 100,000. Non-residents who are based in the UAE must also register for VAT. In addition, they must submit certain documents to be eligible for registration. These documents may include business registration documents, projected turnover figures, and expected values of imports and exports. If you’re not a resident of the UAE, you must complete the registration process to receive the VAT registration number.

Non-residents are required to register for VAT in Abu Dhabi:

As a non-resident in Abu Dhabi, you must register for VAT when you make supplies to residents of the Emirate and account for VAT on those supplies. You also need to register under the reverse charge scheme if your taxable supplies and imports have exceeded the threshold for mandatory registration. However, if you do not expect to exceed this threshold within the next thirty days, you can register for VAT voluntarily.

If you are a non-resident making taxable supplies in the Emirate, you must register for VAT. This is necessary even if you do not have a physical presence in the Emirate. Moreover, if you are a resident of another GCC state, you may be liable for VAT in the country. Non-residents who are not residents in the Emirate but have an office or a business in Abu Dhabi must register for VAT.

Documents required for vat registration in Abu Dhabi:

VAT registration in UAE can be completed online using the Federal Tax Authority portal. Before applying, the applicant should decide which kind of VAT registration they need – standalone or as part of a tax group. Once this is decided, the applicant must upload soft copies of the documents required. Typically, the documents required for VAT registration in UAE include the articles of association, certificate of incorporation, and power of attorney. In some emirates, customs registration requires additional documents.

Future test for vat registration in Abu Dhabi:

Every natural or legal person dealing in taxable supplies must register for VAT. Two main tests assess whether you need to register and comply with VAT regulations: the historical and future tests. The historical test is performed at the end of each calendar month. If you have taxable supplies over the threshold in any of the previous 12 months, you must notify the Federal Tax Authority within 30 days of the change. If you have not registered for VAT, you must register before the first day of the following month.