Tax Consultation

In UAE, voluntary registration is permitted if either the turnover or expenses (which were subject to VAT) were more than AED 187,500 in the last 12 months or either the turnover or expenses (which were subject to VAT) to be more than AED 187,500 in the next 30 days.

Whereas it is mandatory in UAE to register under VAT if turnover was more than AED 375,000 in the last 12 months; or turnover to be more than AED 375,000 in the next 30 days.

In Bahrain, all entities or individuals conducting an economic activity independently for the purpose of generating income and making annual supplies exceeding the mandatory threshold of BHD 37,500 are required to register for VAT purposes are required to be registered with the National Bureau for Revenue (NBR) to obtain a VAT registration certificate and a dedicated VAT account number to start collecting the 10% VAT.

In Saudi Arabia, All the businesses who have a place of residence in the Kingdom and the value of taxable supplies exceeds SAR 375,000 in the preceding 12 months, should mandatorily register under Saudi VAT. Also, registration is mandatory for those businesses who anticipate that the annual value of supplies to be made in the next 12 months exceeds the threshold of SAR 375,000. All those businesses who have a place of residence in the KSA and the value of taxable supplies exceeds SAR 187,500 but not exceeding SAR 375,000 in the preceding 12 months or anticipate it to exceed in the next 12 months, are allowed to register under VAT.

Registering for VAT is through online channels and the potential tax payer has to create and account and submit an online application by providing all the relevant information and uploading the required documents.

The person that is operating a business shall register and not the business itself.

A person can be an individual (i.e. operating as a sole trader), or a legal person (e.g. an incorporated business, a company) or another form of entity (e.g. an unincorporated body such as a charity or a club, a partnership or a trust).

Generally, a VAT registration covers ALL of the business activities undertaken by the registered person. Generally, there is no fee for registration under the VAT. However, if the registration is delayed, a late fee is applicable.

Businesses in UAE can also apply for Tax Group Registration. Multiple businesses of a different nature can also create a tax group. As per Federal Tax Authority (FTA), if an individual has more than 50% shares in more than one companies then he can form a tax group of all the companies and FTA will issue a single TRN for the whole group of companies.

MIA helps business by providing hassle free experience in VAT registration by making available tailor-made checklists for businesses to prepare the documents required for VAT registration.

MIA has dedicated teams who are focused on understanding the intricacies of VAT registration including dealing with queries raised by the Federal Tax Authority.

MIA provides end to end solutions in tax registration. Please feel free to contact us should you have any queries.