Now we
will discuss how to file a VAT
online, and it will help you
to register your company first and of course to move forward how to fill the
form on how to submit your return. That is what we are going to discuss now
already we have some basic knowledge about that like if I'm a company what is the
threshold for the VAT
evaluation is that for
me.
That is a question what I know, but I should have that's
a critical point if your annual turnover is exceeding three hundred and
seventy-five thousand rooms. Then you have to register mandatory for the filing
of your VAT returns you can all voluntarily even for the VAT registration. If your turnover is at least a hundred and it
is 7,500 their humps how this figure will be calculated you have to see the
12-month range of your ear total value of the supplies in subsequent thirty
days.
When you of exempted supply will not be considered in
terms of the calculation of your that turnover, first of all, it's very
important for us to know that what a taxable supply is. So taxable supply has
certain items inside standard rated supply, zero-rated supply, and reverses
charges imported goods.
How to register for the VAT
That is the central interesting learning part so that you
will go on the website of FTA. First-time registration will be almost the
same way that you should have a copy of trade license should have and ideally.
That should be done by the authorized signatory passport
copy immerse ID shareholder documents and some other documents that are required
time to time on the case to case basis. Once all your documents have been
submitting, and there will be an approval, and you will be receiving a tax
registration number.
It's a straightforward process should not take more than
fifteen minutes in total as a precaution. It should be filled by the one who
understands who is a legal responsibility and authorized signatory. Because any
wrong VAT filing will create complications in future before you
fill the form you have to make sure certain essential things.
Are you registering mandatory or it is ordered to be
recorded? Are you applying for a single company or it's for a group of
companies. When you have a related party or a holding structure, they have
required documents like trade license certificate of incorporation and letter
of authorization for official signatory.
Then you have passport copies Emirates IDs and some
related legal stuff that you have to have. While you will be required to have
when you are going to fill this while you are registering for the word system
we'll ask for some information about your business activity.
So you have to describe what is your business your last
twelve months turnover figures what will be your projected future turnover.
That is also a significant expected value of important exports if you are
dealing with any critical commodities.
Are you dealing with the local suppliers within your
Emmerich's or are you interacting with Gulf economic console countries like Saudi Arabia, and Oman. That's a critical consideration
of course if you are imported or exporter you will have a customs registration
number that also should be with you.
Here we can see how the first time and you will open the
website you will go to each service. So you will see this kind of interface
this is for the federal
tax authority, you
have one heading here create a user account or log in to use an account.
So if you are making first time, of course, you have to
create an account but if you have already a username and password so you can
enter in the system through using this window when you click on create user
account it will open a window. It will start for your email address so ideally
the email address that you have given in your Emirates ID or at the time of
registration. So that will be better to provide here passwords you will confirm
the password for security verification you will select the CAPTCHA and select
security questions.
So in case if you forget, later you can recover
your account by using the security questions. You can have a hand also so in
any case if you ignore the security question. So there might be a hint that can
recall you for the resetting, and in the last, you have to agree with the terms
and conditions.
Once you are all done you have to click the sign now once
you click here on signup, you will receive an automatic email. This email will
come to your given email address and what you need to do is you have to verify.
So that step will make sure that you are the right authentic user and once you
ascertain you are going to be active.
You can see you will have received a message and thank
you very much for creating an account. Please click here to verify your email
so once you create your account successfully. You'll ascertain then you can go
to login and you will give your email and password.
You will give the capture and then you are going to login
in the system so once you are logged in. You will see this kind of interface it
will tell you or register for the VAT and
the register for the excise tax.
Once we click this register for VAT, we will see our form will be open in front of us, and we will
see some tabs like about the applicant detail of the applicant, contacts
banking details, business relationship about the word you have declaration and
then review and submit.
So these are specific tabs that will see on your screen
about the applicant on which basis you are applying for registration. So you
are what kind of nature of the company you are you are a joint-stock company or
what. So you have to define where you hold that trade license in UAE.
So you have to say yes or no are you applying to create
or join a VAT group so if you are a
single filer or you are going to fight on behalf of the group. You have to
choose accordingly, or you're just mandatory or voluntary. You have to select
if you are based on your turnover you will decide this is necessary or it will
be optional.
If you feel any difficulty in this process, there is
always assistance is required, and there is a user guide. Once your form is
filled, you should check one time we all and then you have to submit FTA is going to receive the to review
this and then they will notify you about your tax registration number that's
always a common concern that if you are the owner of four or five companies
like in the United Arab Emirates.
That is a trend that generally one person has three
companies' five companies, and sometimes you haven't become new transactions.
How you can handle such value so in the system we have a
perfect option that is you can group your companies and system will treat it as
one.
What will be the fact all this dropping system is, of
course, going to ATO as one entity
and what will be the result of that supplies made between the related party
companies.
Who will be disregarded but if this word group is dealing
with any group outside of course that will be the part of the calculations that
have been shown in this diagram.
If you are a growth company, a B and C you are dealing
with each other. That is no implication but when you are talking about anything
outside your group then of course.
When there is a sale, there will be about so you can see
this is a very systematic and organized filing. Which requires just we should
not take more than fifteen minutes in terms of actual filings. You can do it
online and what would be the possible deadlines the due date will be 28 days of
the end of the return period.
Where due date falls on weekends or national
holidays deadlines will be extended naturally to the next working days of
course if you will not submit your return on time so you can expect some
penalties.
That is very important to keep the records of your
accounts for tax compliance purposes. So any kind of sale in wise purchase in
why is your general ledger your accounts that you have to keep in your office
for ready for the review of any tax audit from FTA.
Any kind of additional documents that you should also
keep case to case basis in your premises ready for the audit the period for the
intention of the papers should nor should be at least five years, of course,
five years.
You will keep the hardcopy and but in soft copy; it will
always be available so what you need to save also quality and vices and
alternative documents related to receiving the good in services quality of tax
credit notes.
All tax invoices and the alternative document issued all
tax credit notes and alternative reports he showed he would keep it in here
records moving forward the history of all supplies of the imported goods and
services exported goods and services wooden services.
Those have already been disposed of wooden services for
which the input tax was not being deducted but did you want taxable supplies
which had after any error or correction and adjustments VAT deductible for any import and export supplies.
So we have to simplify it the tax invoices. It should
have some compulsory stuff into what are those tax invoice in a prominent place
because if we see the document, we can see this is a tax invoice should have a
standard name address tax with a number of the supplier date of issue
description of the right total amount payable total but chargeable.
These are the components that we need to see on a tax
invoice there are penalties of course with time. It is going to be the clearer
case to case basis how much penalties has been there should be a penalty table
that will sew.
So we can refer to that for Keisuke spaces there will be
some strict penalties on tax evasion. So any point of time if someone is going
to provide fold information and data and our person deliberately conceals and
destroy documents or other material.
So you the person are of course going to face legal
complications by the FTA. Generally, it can
be up to five times, or it can be imprisonment or based on the sensitivity of
the documents and nature of the case itself. We can see that the tax return
online filing, it has some easy steps and once the filing actual filing will
come. We will be more clear about it you know how to do it by yourself keeping
yourself online.
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