Dubai, Oct 11 (Emirates 247): The UAE Federal Tax Authority, FTA, has announced that online registration for Value Added Tax, VAT, is now open, through its website, as part of the Authority's preparations for the 5 percent VAT, set to be introduced from 1st January, 2018.

This is part of the Authority’s commitment to facilitate the registration procedures for all businesses in all sectors that are subject to VAT, in accordance with the highest international standards. The registration portal is available 24/7 to ensure business-readiness by aligning organisations' financial and technical systems to comply with the regulations and procedures.

Businesses must register for VAT if their taxable supplies and imports exceed the mandatory registration threshold of AED375,000 per year.

Businesses with taxable supplies and imports from abroad that are less than the mandatory registration threshold and exceed the voluntary registration limit of AED187,500 annually can optionally register for VAT. Businesses with expenses that exceed the voluntary registration threshold can also register. This opportunity enables start-up businesses that do not have the required income to optionally register for VAT.

FTA has urged all businesses to adhere to the following timeline those with an annual turnover exceeding AED150 million should register before 31st October, 2017, and those with an annual turnover exceeding AED10 million should register before 30th November, 2017.

All businesses that must be registered by 1st January, 2018, should submit their registration applications before 4th December, 2017, to minimise the risk of not being registered in time for the beginning of 2018.

Khalid Al Bustani, Director-General of FTA, said, "This is part of our commitment to enhancing the readiness of different businesses and raising their preparedness for the easy application of the distinct tax system that is consistent with global best practices and embodies the leading position of the UAE at all levels. The Federal Tax Authority is keen to give the business sectors sufficient time to adapt their operating systems to the requirements of the VAT system.

"The registration portal is available to all businesses around the clock to assure the ease and usefulness of the registration procedures to all businesses from all sectors through the website, which has been specially designed to meet international standards and to provide guidance to registrars on the completion of their applications."

The FTA has urged all businesses to learn and understand the implications of the VAT system and to align their work with the reporting and compliance requirements by the government. Businesses are also asked to ensure that they meet the conditions that allow them to uphold their obligations, which might call for making certain changes.