Non-business international groups needn’t register for VAT, FTA says

Abu Dhabi: The Federal Tax Authority (FTA) said diplomatic missions and international organisations that do not conduct business will be registered in a system that doesn’t require a Tax Registration Numbers (TRN).

However, international organisations that conduct business, import and export on regular basis should register for VAT like all businesses, it said.

The FTA said businesses with turnover below Dh375,000 are not required to register for VAT. However, if their turnover exceeds Dh187,500 and below Dh375,000 they may register voluntarily.

In a press statement on Friday, the FTA said it had noticed that some diplomatic missions and other entities that did’nt need to register have submitted applications to obtain TRNs, 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 Dh375,000 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 time frame 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.