Diplomatic missions and qualified international organisations do not require tax registration number and Businesses with a turnover below AED375,000 are not required to register for VAT

The Federal Tax Authority (FTA) stressed that diplomatic missions and international organizations that do not conduct business will be registered in a system that doesn’t require a TRN; however, international organizations that conduct business, import and export on regular basis should register for VAT like all businesses.

According to FTA, businesses with turnover below AED375,000 are not required to register for VAT, however if their turnover exceeds AED 187,500 and below AED 375,000 they may register voluntarily.

The FTA has noticed that some of the above-mentioned have submitted applications to obtain Tax Registration Numbers, and that some entities have requested them to present these numbers to continue their business transactions starting 2018.

The FTA has urged businesses in the UAE that have not yet registered to register for Value Added Tax (VAT) to avoid the risk of missing the January 1, 2018, deadline.  This applies to businesses with taxable supplies and imports of goods and services that exceeded AED375,000 over the previous 12 months. Taxable supplies are identified as all supplies of goods and services made, which are not exempt.

Recently, the FTA announced that businesses which commenced their registration after the timeframe specified by the authority were provided with provisional Tax Registration Numbers while they complete their tax registration requirements including the submission of any additional documents and information or amending any errors in their applications if needed.

The FTA has also called on businesses to verify the data entered in the application form, carefully review it and ensure its flawlessness before submitting, as faulty data could lead to the rejection of the application.

Registration is available 24/7 through the Federal Tax Authority’s website. Businesses are required to visit the website www.tax.gov.ae, select the e-Services portal, sign up and create an account. Once the email has been verified, they can log in and register.

The FTA has urged businesses to provide accurate information and make sure they enter it properly into the application form. To complete the registration process, scanned documents must be attached, including the business or trade license, passport/Emirates ID (for UAE residents) of the manager or owner of the business, and the authorised signatory (if the signatory is not the manager him/herself), as well as proof of authorisation for the manager or signatory (e.g. articles of association, power of attorney attested by notary, etc.).

More information can be found in the Legislation and Guides section, on the FTA website.

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