By: Tanvi fal Dessai
Thresholds for UAE VAT Registration Process
List of documents required for UAE VAT Registration Process
Other Required Details for UAE VAT Registration Process
(Note: Documents as mentioned earlier and details should be kept ready before you start the registration process on the VAT registration portal.)
The sign-up details will be used as your login and password.
Businesses will be notified by email and SMS when your TRN is generated.
TRN (Tax Registration Number) is the identification number given to every person registered under UAE VAT. It is mandatory that only persons having a valid TRN should charge VAT on supplies. FTA has created a separate section for to check the validity of the Tax Registration Number in the FTA e-service portal
After the email or SMS notification of the TRN following are the steps you should follow to check the validity of your TRN:
Note: If your TRN is valid that the results will be ‘TRN is available on the system’ followed by the registered person’s name. If the TRN is invalid than the results will be ‘TRN does not exist on the system’.
The UAE cabinet has approved a list of administrative sanctions to be imposed on businesses for tax violations. – fine or penalty shall not be less than AED 500 and no more than triple the amount of the transaction tax.
Following is the list of fines and penalties which were imposed by the FTA:
| Failure to keep the required records specified by the tax procedures law and the tax law. | 10,000 for the first time. 50,000 for each repeat violation. |
|---|---|
| Failure to submit a registration application within the timeframe specified by the tax law. | 20,000 |
| Failure to submit a deregistration application within the timeframe specified by the tax law. | 10,000 |
| Failure of the Registrant to submit a tax return within the timeframe specified by the tax law. | 1,000 for the first time. 2,000 in case of repetition within 24 months. |
| Failure to pay the tax stated in the tax return/tax assessment form within the timeframe specified by the tax law. | The taxable person will incur a late payment penalty as follows: • 2% of the unpaid tax is due immediately. • 4% is due on the seventh day following the deadline for payment. • 1% daily penalty will be charged on any amount that is still unpaid one calendar month after the deadline for payment, up to a maximum of 300%. |
| Submission of incorrect tax returns. | Two penalties are applied: • Fixed penalty of: o (3,000) for the first time. o (5,000) in case of repetition. • Percentage-based penalty shall be applied on the amount unpaid to the Authority due to the error as follows: o (50%) if the Registrant does not make a voluntary disclosure or he made the voluntary disclosure after being notified of the tax audit and the Authority has started the tax audit process, or after being asked for information relating to the tax audit, whichever takes place first. o (30%) if the Registrant makes a voluntary disclosure after being notified of the tax audit and before the Authority starts the tax audit. o (5%) if the Registrant makes a voluntary disclosure before being notified of the tax audit by the Authority. |
| Failure to account for tax due on import of goods as required under the tax law. | 50% of unpaid or undeclared tax. |
Following are the cases when a business can apply for the deregistration of VAT:
Note: Any business who has voluntarily registered under VAT cannot apply for de-registration in the 12 months following the date of registration.
If the deregistration application is approved, the tax registration will be canceled. A notification of successful deregistration will be sent to the registrant after 10 business days of the application being approved.
