The concept of Value Added Tax (VAT), has been introduced into the United Arab Emirates. Now, VAT is considered to be a relatively new concept and as such a number of organizations are still quite only adjusting to meet up with the new requirements and regulations. From January 1, 2018, VAT has been put into action in the UAE. Due to this, a tax rate of 5% would be levied on non-essential consumer goods. All operating businesses in the country are to register their business or brand for VAT in order to continue operating within the borders of the country. The regulatory authority in-charge of tax in the United Arab Emirates is the Federal Tax Authority (FTA).

Let's take a look at everything relating to registration including how you can register.

VAT Eligibility. For a business to be eligible to register for VAT, it must be a provider of goods and services which falls within the taxable categories which enjoy annual revenue which is as much as AED 375,000. As long as your brand is considered eligible for VAT, you are to register yourself to avoid incurring any penalties or charges

Importance of VAT registration
The most important reasons for which every brand should get their VAT registration done include the following;
● Helps to improve business profile
● Helps to avoid penalties
● Possibility of VAT refunds
● Provides access to a mass-market

VAT registration

To complete VAT registration in the United Arab Emirates, you would have to fill the registration form online. Certain documents will be required for the completion of this registration and to get the VAT number. The entire registration process is done online.

Documents required for VAT registration
To complete the online VAT registration, you would need to submit the following documents;
● A copy of the trade license
● Passport photographs of business owners or partners
● A copy of the Emirates ID of the owner and partners
● Memorandum of Association
● Company contact
● Bank account details
● Income statement for the previous business year
● Details of business activities

The online registration for VAT is done on this website; www.tax.gov.ae. On this site, there is a registration portal where business owners can visit for VAT registration. The registration process comprises the following steps, namely;
● Fill in info about the applicant
● Fill in personal details about the applicant
● Fill in Contact details
● Fill in banking details
● Identify your business relationship (optional)
● Read more about VAT registration
● Declaration
● Review the form and submit it.

Once business owners are done with the entire registration process, the FTA will help to review the information submitted. If everything is found in order and satisfactory, the application will be approved. Then a Tax Registration Number will be assigned to such a business.

The VAT certificate is issued afterward. This certificate is basically the proof of completing VAT registration. This means that a certain tax is levied on goods and services at every step of the way.