Value Added Tax is important for conducting all kinds of business activities in the UAE. All businesses that have an annual turnover exceeding AED 375,000 must register for the VAT with the Federal Tax Authority. This registration requires the businesses to furnish all kinds of details like the business name, location, key persons, etc in the Federal Tax Authority portal. Should there be any changes after the registration in these details, the same must be notified to the FTA. In this article, we shall be discussing how to amend the details registered with the FTA in the UAE and how VAT registration UAE can help you in making the changes if any with the FTA if required at any point in time after the registration has been completed.
The businesses in the UAE that are registered for VAT must inform the FTA, of the details of amendments that are to be done at a later stage. These amendments must be informed to the FTA within 20 working days from the occurrence of the circumstances that led to these amendments. For the amendments, the changes that are done on the FTA portal are classified into 2 categories-
- The changes that require approval from the Federal Tax Authority
- The changes that do not require approval from the Federal Tax Authority
Let us discuss them in detail.
- Amendment of VAT registration in the UAE that does not require approval
The amendments that do not require VAT approval can be done through the FTA portal. One must visit the registration application under the dashboard tab and click on editing the application. The changes that do not require approval from the FTA are: –
- Business activities of the applicant- Multiple options can be added in this section by selecting “add other activities field”.
- GCC activities- if the applicant is registered for VAT in any GCC member state, the details on the same have to be furnished in the relevant section of the FTA portal.
- Customs registration information update- In this section, the applicant must furnish details with regard to the customs registration details. In case there are multiple Custom Registration Numbers (CRN) in the UAE for an applicant, each one of them should be added separately.
Once the changes have been done, the submit button will help in making the required changes confirmed and will reflect in the portal of the applicant, in case of any doubts one must consult the tax consultants in the UAE in order to make these amendments as they are experienced and will help you in doing the changes properly and in time to avoid hefty fines and penalties.
- Amendment of VAT registration in the UAE that requires approval
The amendments that require approval from the FTA have a different procedure to be followed. The first step here involves notifying the FTA regarding the changes that are to be done. Once the FTA has approved the changes, then only the applicant is allowed to change the same in the portal. The following sections can be amended post approval from the FTA-
- Business details of the company like the trade name and company name
- Bank details of the business
- Contact details
- Business relationships
- Changes in actual and estimated financial transactions
- Changes regarding import and export
- Changes with respect to authorized signatories and communication points
After the amendments have been done, one should check the same and ensure that they are correct. Once confirmed, the same shall be reviewed and submitted. Any doubts or queries regarding the same can be clarified with the help of the tax consultants in the UAE. they will not only help in making the changes and getting the approvals from the FTA but will also ensure that all the procedures and rules are being followed in the proper way and as per the direction of the FTA.
Checking the progress of amendment of VAT registration in the UAE
The progress of the changes to VAT registration also called amendment of VAT registration can be tracked through the FTA portal. There are four categories namely Drafted, Pending, Rejected, and Approved. Depending upon the status of the application, one can follow up with the FTA for the completion of the process. Once, submitted the applicant is not allowed to initiate another amendment or modify a current amendment until the application is under the pending or drafted stage. Therefore, to understand these stages in a better way and in cases where there is confusion, one must consult the tax consultants in Dubai who can guide your way through the submission and approval stages of the VAT registration amendment application.
Failure in notifying the amendment of VAT registration in the UAE
If by any chance, the VAT registrant fails to notify the changes made to the FTA, they will be liable to pay a fine of AED 5000 for the first time. Every repeated failure can lead to a penalty of AED 15000. Therefore, all businesses in UAE should be fully aware of the procedure to register for the VAT and also the procedure of making amendments to VAT registrations done with the FTA portal. A tax consultant in the UAE can help all business owners by making the process much easier and hassle-free.
How VAT registration UAE can help you in the amendment of VAT registration in the UAE
At VAT registration UAE, we have a team of experienced tax consultants in Dubai. They keep themselves updated with the latest tax laws and VAT implications issued by the Federal Tax Authority. Therefore, right from registration and amendment to VAT filing and cancelations, they can help your way through the VAT and taxation-related process. Get in touch with us today and we will help your way through the amendment for VAT registration in the UAE. We also ensure full compliance of the businesses with the VAT guidelines and also conduct timely health checks for VAT in the companies to ensure that all invoices and procedures of the companies are in line with the FTA require