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Vat Registration In Abu Dhabi & VAT Filing Services

  • Vat Registration in Abu Dhabi - Freebird

    Significance of VAT Registration in Abu Dhabi, and consequences of not complying with VAT Filing

    VAT Registration in Abu Dhabi is compulsory for a business with an annual turnover of above AED 375,000. Annual turnover comprises the expected turnover for the subsequent 30 days. After that, the firm can willingly register for VAT, where turnover surpasses AED 187,500 per annum.

    What are the documents needed to apply for VAT registration & VAT Filing?
    • Trade license
    • Documents for licensed signatory, e.g., passport document, Emirates ID
    • Documents for licensed signatory, e.g., passport document, Emirates ID
    • Supporting record for sales of the last 12-month
    • Turnover for the previous 12 months
    • For each GCC country, the estimated import value is one year.
    • Expected turnover in the following subsequent 30 days
    • Description of business activities
    • Bank Account details
    • Expectation to deal with GCC suppliers or customers
    • Custom registration documents in each Emirate, if applicable.
    • Other documents authorizing the entity/individual to undertake movements in UAE, e.g., articles of association, certificate of incorporation, power of attorney, etc.

    What happens if you don't register for VAT Registration?

    Whether you've simply overlooked or don't comprehend how the system functions, failing to enlist for VAT can lead to severe penalties and a poor prominence with HMRC. One of the parts of VAT Filing is the rolling 12-month term that's utilized rather than the tax year or calendar year, and this can capture people out, so keeping a watch on your taxable sales each month is vital if you're closing the threshold.

    Failure to report penalty

    Omitting the registration indicates you'll be levied a failure to declare a penalty by HMRC. It is established on how much VAT you owe and raises the longer you take to enlist.

    Civil evasion penalty

    Suppose HMRC has valid grounds to think you've deliberately avoided your VAT liability. In that case, they can undertake a Civil Evasion Tax inquiry and potentially charge a civil evasion fine equal to the amount of VAT bypassed.

    It is unlikely to occur as you've failed to register, but it's worth learning the broad scope of authorities HMRC hold where VAT is involved. A further problem that impacts cash flow is your liability to reimburse the VAT you owe from the date you should have enlisted, even though you won't have assessed it to customers on your sales invoices during this course.

    How can Free Bird Business Setup Services help you?

    Being FTA-approved tax agencies, we have ample experience and understanding of VAT registration necessities. Therefore, we can support our customers in making the proper judgment on VAT registration, which comprises, among other aspects, the consideration of Group registration or standalone. 

    Therefore, if your company is looking for VAT Registration In Abu Dhabi or Company Logo Registration, contact Free Bird Business Setup Services today!