A Complete List of Documents Required for VAT Registration in the UAE

Each business is expected to comply with the regulations which comes with an extensive list of documentation that is mandatory for the registration process. This can be especially troublesome for medical businesses that already are faced with a plethora of compliance issues. For such entities, being fully aware of the required documentation assist in saving both time and money. Thereby, being fully aware of the documents that are necessary for the documents required for vat registration in uae process can enable the business to utilize the benefits of legal taxation mechanisms for the business. In this article we will attempt to clarify these documentation requirements alongside the process step by step.

The VAT registration process is a stepping stone towards a more responsible tax regime, that is, for businesses like medicine where the registration allows activities like re-claiming input VAT.

The registration process also boosts transparency within the company which aids greatly in trust building with both the clients and the regulating bodies. The VAT system in UAE is administered by the FTA and has regulatory stipulations that must be adhered to. Compliance with the regulations of the FTA is important whether you are a pharma LLC or a new healthcare business. Furthermore, the VAT structure will be useful in pricing and financial planning of the business.

Documents Required for VAT Registration

Pharmaceutical and healthcare businesses in the UAE are required to prepare and submit certain documents to the government during the VAT registration process. The following are the required documents for VAT registration in detail.

Business Registration Documents:

• Trade License: A copy of the General Authority for Health Services-issued trade license.
• Commercial Registration: A certificate of commercial registration with the government of the UAE.

Identification Documents:

• Emirates ID: Account copies of all partners/authorized signatories.
• Passport Copies: These are the certified copies of the shareholder and the partner passport pages that are part of the business documents.

Financial Information

• Financial Statements: These will be the documents that show business turnover, snaps of your business’s balance sheet accumulated for a specific period, profit and loss and cash flow.
• Bank Account: These are the records about the account of the business with the bank including, but not limited to, the extracts of the account for a specific period.

Once you collate the requisite business and financial documents commensurate with any additional paperwork relevant to medical businesses, this is to ensure that you comply with the specific regulatory rules imposed by health authorities. For example, documents for the registration of medical products may be required in order to avert regulatory problems in the future. Also, businesses that are accepted as partnerships or joint ventures should always appoint certain agreements which describe their containing functions and financial contributions. Such a level of documentation cannot only protect the partners but assist in making sure the business is credible especially to the regulatory authorities.

Document Type Description

• Trade License: A legal certificate that allows business to conduct its business.
• Emirates ID: An identification number which every partner and signatory holds.
• Financial Statements: Financial records for the most recent financial performance of the company.
• Partnership Agreement: An agreement in writing stating the structure of the partnership.

With the right documents in hand businesses can complete the VAT registration process without any issues. With that said, businesses are required to go through the FTA, upload the required documents, provide banking details, and specify the type of business. The accurate submission of documentation is paramount, as it can determine the speed at which registration is completed. Such readiness significantly decreases compliance costs since businesses are able to effectively meet obligations and to recover relevant VAT.

Conclusion

In conclusion, the preparation of the necessary VAT registration documents in the UAE should not be regarded as a formality, but rather as an essential step in setting up a registered business. This is especially crucial for companies in a VAT sensitive sector such as healthcare, as it allows them to recover VAT on their expenses as well as ensure that more business transactions are made in a proper and legal manner. However, with a liberal attitude, where diligent preparation of the documents is part of the business strategy, the registration procedures and expenses as well as penalties for non-compliance can be minimized, thus giving a competitive edge to the company. So seize the chance to ensure that not only your compliance but your business’s all round health is improved as well.

FAQ

• What is the deadline for VAT registration in the UAE? The deadline for registration of VAT usually occurs as per your business turnover that exceeds AED 375,000 in a year or on the basis of voluntary guidelines.
• Can I apply for VAT registration online? Yes, there is an online portal for VAT registration available on the UAE Federal Tax Authority website.
• What happens if I fail to register for VAT? If you fail to reach a VAT threshold there will be consequences in the form of penalties and legal problems, fines for example.
• Are there any penalties for incorrect documents during the registration process? You can face delays with the submission and approval of the application and a fine for wrong documents submission.
• Is VAT registration required for all businesses in the UAE? No, there is absolutely no need for all to register for VAT, only those businesses which exceed the given turnover limits or voluntarily apply to register need VAT registration.