Procedures Related to Tax Registration and De-Registration Followed by Auditors in UAE
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Aug 2020

Tax recordings are one of the integral parts of the business that needs to be clear and error-free. Just like accounting and audit procedures, the tax records are scrutinized during an audit procedure, and any error in them will have a negative impact in the mind of the auditor, and ultimately affect the audit score. Recently, the United Arab Emirates have implemented the tax proceedings on 1st Jan 2018 and has infused VAT proceedings that need to be borne by the business entities at a rate of 5 percent. This step has been one of the strategic moves by the Emirati Government to fetch out a new route to increase the nation’s revenue.

The business entities are expected to maintain proper and precise tax records. However, business entities might end up proceeding ahead for tax registration or de-registration at different points of time. Before moving forward towards the process, it turns up to be helpful if one has an idea regarding the core procedures related to tax registration or de-registration process. This guide will help you to get an overall approach before you take a step towards your business tax recordings.

  1. A tax registration application shall be submitted by the non-registered Taxable person or any other person who has the right to be registered to the Authority according to the forms adopted by the Authority in this regard.
  2. A Tax de-registration application shall be submitted to the Authority by the Registrant who is required or has the right to be deregistered based on the forms adopted by the Authority in this regard.
  3. The Authority shall review the tax registration or de-registration application following the rules adopted in this regard.
  4. Tax registration or de-registration shall be finalized by issuing the Tax Registration Number for the application, or canceling this number, or reactivating the Tax Registration Number if the Authority re-registers a person, as the case may be.
  5. The Authority shall notify the Person of his tax registration or de-registration or the reactivation of his record based on the mechanism adopted thereby in this regard.
  6. A registrant within 20 days shall notify the Authority with any of the following:
  • Any change to the name, address, articles of association, or nature of the business of that registrant.
  • Any change to the address from which that registrant conducts any business.
  1. The Government body, which is responsible for issuing the business permit shall inform the Authority that the license has been issued within 20 days from the period of granting the consent. The notification would include the following:
    1. The name of the business
    2. Type of commercial license
    3. The commercial license numbers
    4. The date of issuance of the commercial license
    5. The registered business addresses
    6. A clear description of the business activities
    7. Complete details regarding the owners and directors of the business
    8. Any other information requested by the Authority
  2. Any person appointed as a Legal Representative is required to give a notice of his appointment to the Authority within 20 business days from the date of appointment. Such a notice issued will include the following details:
    1. The name and address of the taxable person
    2. The type of appointment
    3. The person’s responsibilities
    4. The duration of the appointment (in-case of fix-term selection)
    5. Tax Registration Number
    6. The name and address of the legal representative
  3. Whenever a notice gets issued, it shall be accompanied by appropriate evidence of the appointment of the Legal Representative.
  4. The Authority may request further information from the applicant regarding the appointment of Legal Representative to verify the respective details.
  5. Once the Authority accepts the appointment of Legal Representative, it will notify within 20 business days.

Dealing with the tax proceedings is one of the tasks that you can’t ignore. However, it is to be noted that the actions are to meet in a clear and error-free way. Any error in the books might have a negative impact during the audit process, which would harm the brand of the business entity.  The best way to deal with the tax proceedings is to proceed ahead with the tax experts who can help you in dealing with the process correctly. Wondering how? Your answer is right below.

Benefits of Availing Professional Services

By joining hands with a tax expert, you will be able to avail the following benefits:

  • Implementation of the best tax practices
  • Easy VAT return filing
  • Error-free tax records
  • Solutions to the existing errors
  • Help in Business Planning
  • Reduce tax liability and enhance profitability
  • Ease the Audit Process
  • On-time delivery of business projects

JAXA Chartered Accountants stands as one of the top audit firms in the UAE who has been providing dedicated tax, accounting, and audit services to numerous clients since inception. Our business experts hold tremendous industry experience and can guide you while dealing with tax registration or de-registration proceedings by providing tailored solutions. In case you have any query, feel free to contact us-we’d be glad to assist.