The federal tax authority has declared that the last date for VAT registration without penalizing will be December 4. As VAT is going to be effective from January 1, FTA has asked to speed up the registration process. All companies with an annual income of more than 3,75000 Dirham should register before December 4.
The profit of the businesses in the last 12 months will be considered under VAT. The reports say that most companies in UAE will come under the VAT registration limit.
FTA instructed that the applicants should fill in complete and accurate details and that they should submit the scanned copies of all documents to complete the registration process. UAE residents have to submit the trade license of the company, the passport or the Emirates ID of the company manager or owner. Articles of association attested by notary and power of attorney can also be submitted if necessary.
Around the clock, online registration is possible through the VAT website portal. It will take nearly twenty days to get the Tax Registration Number. So the procedures have to follow the time limit. In the case of failure to do so, according to the cabinet decisions based on the taxation law, the company will be fined 20,000 Dirhams. Every company that comes in the VAT registration limit should give VAT invoice from January first during all business deals and TRN is needed to give the VAT invoice. Violation of these procedures will lead to penalization.