Registering a warehouse keeper under VAT in UAE
VAT in UAE- Registering a warehouse keeper under VAT in UAE
Value Added Tax (or VAT) is an indirect tax applied on the consumption of most goods and services. It is also referred to as a type of general consumption tax. It is imposed on a product at each stage of production before the final sale.
At each stage in the supply chain, businesses collect VAT on behalf of the government. Because it is added to the customer’s purchase price, ultimately it is the end consumer who pays VAT.
The introduction of VAT will help the UAE government to generate an estimated Dh12 billion worth of revenue in the first year, which will increase to Dh20 billion in 2019.Collection of VAT will boost government revenues.
Using this revenue, the Government plans to offer various types of public services, including medical facilities, good roads, transportation facilities, public schools, parks, waste control, and more. VAT will also provide a new source of non-oil revenue for the Emirates
Who is a warehouse keeper?- Registering a warehouse keeper under VAT in UAE
A Warehouse Keeper is any person who has been registered with and approved by the FTA to supervise a Designated Zone.
As a warehouse keeper one should be aware that unless you have applied for one Designated Zone, and that Designated Zone application has been approved, you will be unable to complete your Warehouse Keeper application and you will not be able to operate as a Warehouse Keeper.
You are not required to possess a Tax Registration Number (TRN) or be a taxable person in order to register as a Warehouse Keeper.
Registering a warehouse keeper under VAT in UAE
- Create an e-Services account with the FTA to register as a Warehouse Keeper: To create an account, simply click on the Sign up button on the home page and fill the details.
- Verify your e-Services account: Registrant will receive an email at the registered email address asking you verify email address. Registrant should verify the email address within 24 hours of requesting to create the eServices account, otherwise the verification link will expire and will have to reregister.
- On logging into e-Services account registrant will see a button Register as a Warehouse Keeper
- Click on Register as a Warehouse Keeper to start the Warehouse Keeper Registration form.
- You will see the guide as soon as you click the Register as a Warehouse Keeper button
- Select the Click here to confirm tab after reading the guide.
- Click on Proceed tab to initiate the Warehouse Keeper Registration form.
- provide details to register as a Warehouse Keeper in the form
- Saving your progress: Click on the Save as draft button at the bottom of the screen after filling each field, as registrant will be logged out of the system after 10 minutes of inactivity
- Click on the Save and Continue button in order to move to the next section.
- Once all mandatory fields in both sections of the Warehouse Keeper registration form are filled, click the Save and review –this enables registrant to read through answers before submission.
- Click on the Submit for Approval button
The status of the application on the Dashboard will change to Pending and registrant will receive an email from FTA to confirm receipt of the application. If the FTA requires any further details from registrant in order to assist with the verification of application, registrant will receive an email notification setting out the information required from registrant.
Providing a Financial Security
FTA will review the application and determine whether a financial security is required and the amount of the financial security that may be required from registrant warehouse keeper. In such a case, you will be sent an email and SMS with the financial security amount required. In order to provide the financial security to the FTA, follow the below steps:
1) Submit a scanned copy of the financial security by email
2) Send a hard copy of the financial security to the FTA by courier
The requirement for and amount of a financial security would be evaluated based on a series of factors including the average month end stock holding the annual throughput and the risk profile assessed by the FTA.
Please note that the FTA may adjust the amount of financial security depending on the risk profile of the applicant. The financial security will be valid for one year upon provision. You are required to revisit the financial security before it is expired. To do so, you may either provide the FTA with a written confirmation that the guarantee values are still correct and/or provide FTA with updated information .Depending on the reply, a new guarantee may be imposed if necessary.
Paying the Registration Fee
Once the FTA has verified Warehouse Keeper registration application, you will be notified and also be able to view the “Pay Now” button on the Dashboard. Once you click “Pay now” you will be directed to the screen that displays the amount due for the Designated Zone registration fee and requires you to provide a mandatory remark. To proceed with the registration fee payment, click on the “Pay now” . This will direct you to the e-Dirham payment gateway off the screen where you can enter your card details and make the registration fee payment.
Once you are redirected to the e-Dirham gateway, you will be able to make a payment through an eDirham or non e-Dirham card. After confirming the transaction and once the payment is processed successfully, you will be redirected to the FTA.
Receiving the Warehouse Keeper Registration Certificate and Registration Number
After making the registration fee payment successfully, warehouse keeper will be sent an email that includes the following information:
1) Warehouse Keeper Registration Number
2) Designated Zone Registration Number
3) Warehouse Keeper Registration certificate The certificate will also be available on your Dashboard page, along with the registration numbers assigned to you
Registering a warehouse keeper under VAT in UAE
Guide to fill the details in the form of Registered Warehouse Keeper in UAE
| Details Required | Explanation |
| Are you registered or resident in the UAE? | Generally the Warehouse Keeper should be a UAE registered businesses or residents for Excise tax purposes in the UAE |
| On what basis are you applying for registration ? | You should register the person that is intending to operate as a Warehouse Keeper.
In most cases, the Warehouse Keeper is a UAE resident. This can be an individual i.e. operating as a sole trader, or a legal person e.g. an incorporated business, a company or another form of entity e.g. an unincorporated body such as a charity or club, a partnership or trust . Natural person is simply an individual operating in their personal capacity i.e. they are not incorporated as a company. The definition covers individuals, individuals operating in partnership where the partnership itself does not have a specific legal form (e.g. LLP’s) and similar.
Legal person is an entity with legal personality formed under the relevant laws that is capable of entering into contracts in its own name. For registration purposes, the definition can include companies and other incorporated corporate entities; partnerships with legal form (e.g. LLP’s); clubs, charities or associations; Federal UAE Government entities; Emirate UAE Government entities and other entities with similar circumstances. Please note, branches are not legally distinct from the wider entity to which they belong. Therefore, registration will not be made in the name of a branch but in the name of the parent where it meets the relevant criteria. Even if you are operating via branches in more than one Emirate, only one Warehouse Keeper registration is required. |
| If other, please specify | You must specify the type of the person you are registering if you select either of the options “Natural person – other” or “Legal person -other”. It is not mandatory for you to provide further detail in other situations |
| Do you hold a Trade License in the UAE | In the UAE, Trade License is a term often used interchangeably with business license, commercial license or similar. It refers to any such license issued by an authorized issuing body in the UAE, including those in a UAE Free Zone.
If you hold one, or more than one, trade license, you must select “Yes” and enter the additional information requested. Otherwise, please select “No” (this includes instances where the Warehouse Keeper is a nonestablished business albeit not very often). Generally, your Trade License should cover the relevant descriptions of your business activities as a Warehouse Keeper. |
| Name of the Applicant | Name of the person intending to be register |
| Existing TRN
for Excise Tax |
You do not need to input any information here. If you have already obtained a TRN for Excise Tax and now you are applying to register as a Warehouse Keeper, your existing TRN should automatically appear here. If it is not the case, please contact FTA via the service request portal |
| Existing TRN for VAT |
You do not need to input any information here. If you have already obtained a TRN for VAT and now you are applying to register as a Warehouse Keeper, your existing TRN should automatically appear here. If it is not the case, please contact FTA via the service request portal. |
| Legal name of the entity-English | IMPORTANT: This information, together with your trade name (if applicable), will appear on your Warehouse Keeper registration certificate. It is important that you enter the details accurately.
If you are a natural person, this is your full name. If you are a legal person, this is the name under which you have been incorporated or which you are known by. If you have a UAE Trade License, you will find your legal name listed in the license. It may alternatively be listed as your “Company Name” or “Business Name |
| Legal name of the entity (Arabic) | You must provide the legal name of the entity in Arabic and English. You may need to seek the assistance of a recognized translator to assist you.
IMPORTANT: The Federal Tax Authority cannot assist you with the translation of any information on the application form |
| Do you have a trade name that differs from the above | A trade name is a name under which a person conducts a business, other than its legal name. Sometimes, a trade name is called an “Operating Name”.
If you have a UAE Trade License you will find your trade name (if you have one) name listed in there |
| Enter trade name (English) | It is important that you enter the details accurately |
| Enter trade name (Arabic) |
You must provide the trade name of the entity in Arabic and English. You may need to seek the assistance of a recognized translator to assist you. IMPORTANT: The Federal Tax Authority cannot assist you with the translation of any information on the application form. |
| Select the name of the authority that issued the Trade License | A list of UAE Trade Licensing authorities is provided as a drop-down list on the form. Select the one that is relevant for you |
| Trade License number | You will find this on your Trade License |
| Select Trade License expiry date | Please enter the expiry date shown on your Trade License |
| Upload scanned cop(ies) of Trade License | Accepted file types are PDF, JPG, PNG and JPEG. The individual file size limit is 2 MB. |
| Save Trade License | IMPORTANT: Please include all Trade Licenses registered under the legal name of the entity |
| Do you have a Certificate of Incorporation? | A certificate of incorporation is a legal document relating to the formation of an entity which has incorporated. It is a license to form a corporation and is issued by a government or, in some jurisdictions, non-governmental entities. |
| Upload a scanned copy | Accepted file types are PDF, JPG, PNG and JPEG. The individual file size limit is 2 MB. |
| Upload any other relevant supporting documents you may have | In the event that you do not have any licenses to prove your incorporation, you should upload any other relevant supporting documents you may have (e.g. articles of association).
If you are a Legal person – Incorporated, you must submit the articles of association to provide the information regarding your ownership. It is not mandatory for you to upload extra information if you have already provided us with a valid UAE Trade License and/or certificate of incorporation. Accepted file types are PDF, JPG, PNG and JPEG. The individual file size limit is 2 MB. |
| Building name and number etc | Please enter your detailed address here. This is the address where you are carrying out your business as a Warehouse Keeper. If you have multiple addresses, please provide details of the place where most of the day-to-day activities of the warehousing business are carried out. If you have established branch offices, this is usually the address for your head office.
Building name and number, street, city and country are the mandatory fields that you have to input. You must notify FTA if your address(es) change within 30 days. |
| IBAN BIC etc. | This must be an account held with a bank established in the UAE. The account name must match the business’ legal name you are registering with the FTA. You must also ensure that you enter the details requested accurately.
IMPORTANT: You must ensure that your account details are accurate. Some accounts cannot receive payments electronically. We recommend that you check with your provider if you are unsure whether or not your bank has made this facility available to you. If you are in the process of opening a bank account, you must provide copies of any relevant correspondence received from your bank or building society. You can proceed with the registration application if you do not have a local bank account. You may also provide or update the bank account detail after the Warehouse Keeper registration is completed. |
About the Warehouse Keeper registration
Activities related to excise goods
If you have already registered with the FTA for Excise tax, the answer for the below section should be the same as your Excise tax registration. If you provide a conflicting answer, you should notify the FTA about the change in your circumstances and information via email or phone
| Which excise goods do you intend to enter into the Designated Zone(s) that you will supervise | Please select all that apply from the options below:
Tobacco and tobacco products Carbonated drinks Energy drinks |
| Do you release excise goods from a Designated Zone | Please select “Yes” if you are releasing goods (e.g. releasing goods as the importer of record/owner of the goods for customs clearance purposes) from a Designated Zone and the goods are released into free circulation in the UA |
| Are you a producer of excise goods? | Please select “Yes” if you will be producing any excise goods in the UAE and/or if the excise goods that will be stored in your Designated Zone(s) will also be produced by you in the UAE. |
| Which excise goods do you produce? | Please select all that apply from the options below:
Tobacco and tobacco products Carbonated drinks Energy drinks |
| Are you an importer of excise goods | Please select “Yes” if your name appears as the importer of the excise goods for customs clearance purposes and/or if the excise goods that will be stored in your Designated Zone are imported under your name (i.e. your name appears as the importer of the excise goods for customs clearance purposes |
| Which excise goods do you import?
|
Please select all that apply from the options below: Tobacco and tobacco products Carbonated drinks Energy drinks |
| Are you a stockpiler of excise goods?
|
If you hold excess Excise Goods in free circulation in the UAE, intended to be sold in the course of business and Excise Tax on those goods has not been paid, remitted, relieved or deferred, then you are viewed as a stockpiler of excise goods and should answer “Yes” to this question. |
| Which excise goods do you stockpile? | Please select all that apply from the options below: Tobacco and tobacco products Carbonated drinks Energy drinks |
| would any of the goods stored in the Designated Zone(s) be transferred from one Designated Zone to another Designated Zone | Please select “Yes” if you will transfer the excise goods between Designated Zones |
| would any of the goods stored in the Designated Zone(s) be transferred from the Designated Zone directly to another GCC country which has implemented Excise Tax? | Please select “Yes” if you will transfer any excise goods from the Designated Zone(s) to another GCC country without being entered into free circulation in the UAE.
Other GCC countries include: Kingdom of Bahrain Kingdom of Saudi Arabia Sultanate of Oman State of Qatar State of Kuwait |
| would any of the goods stored in the Designated Zone(s) be exported from the Designated Zone directly to a non-GCC country or a GCC country which has not yet implemented Excise Tax | Please select “Yes” if you will export any excise goods from the Designated Zone(s) to a third country without being entered into free circulation in the UAE. |
| What is the proposed effective date of your registration as a Warehouse Keeper?
|
You may propose a date from which you will carry on the operations of a Designated Zone as a Warehouse Keeper. The date can be any date (or the same day you submit this registration form). Your effective date of registration as a Warehouse Keeper will be the day on which your application is approved or any date requested from you and agreed by the FTA. |
| Will you store your own goods and/or goods owned by other parties in the Designated Zone(s)? | Please select one of the following options based on your situation:
Own Goods; Goods owned by others; and Bot |
| Please provide any documentation which can support your financial solvency (e.g. copy of most recent financial statements, bank statement for the last three months at least or other) | As a Warehouse Keeper, you are liable to pay the Excise tax owed to the FTA in case the person who is required to pay the tax fails to do so. To ensure that you are financially capable for the potential tax liability, documentary proof on your financial solvency should be submitted for the FTA’s review. Furthermore, the FTA may request you to submit a financial security against Excise tax that may accrue to the excise goods stored in the Designated Zone.
It is mandatory to provide documentary proof of your financial solvency. You may also provide FTA with additional comments for more explanation (as optional). |
| Authorized Signatory
Title Name in English |
If the nationality of the authorized signatory is selected as UAE, you must provide the Emirates ID number.
Proof |
| Proof of Authorization | The documents for proof of authorization may include:
a Power of Attorney; a letter of authorization from the legal person authorizing the Authorized Signatory to declare and sign this form; or a job description of the Authorized Signatory indicating that part of his duties and responsibilities is to represent the legal person; Accepted file types are PDF, JPG, PNG and JPEG. The individual file size limit is 2 MB. |
| Preferred channel of communication | Please specify the preferred channel of communication, i.e. either email or telephone |
| Preferred language of communication | Please specify the preferred language of communication, i.e. either Arabic or English |
| Checklist for Completion |
Using this checklist will help you to make sure that you have completed the form correctly and included any other forms and documents we have asked you to send |
Need to upgrade to Reach online VAT Software:
Reach Accountant software is well designed to match all the needs for successful running of the business. The software can be used in different industries, traders, manufacturers, retailers, workshop ,business projects etc. It is an accounting software that can automatically manage your book of accounts, taxes, inventory, sales, purchases and more online quickly and securely. It is crucial for businesses to evaluate the right software as certified by the FTA, so that they are allowed to generate the VAT return file easily. Thus, the businesses need to carefully evaluate the software which will help you in hassle free transition of your businesses to new VAT regime, ease of accounting VAT and filing returns.
Top Features of the Reach Online VAT Accounting Software are:
- Accounting Management: All functions relating to accounts are inbuilt with the software. You can manage your Accounting Ledgers, Bank & Cash Operations, Purchase & Sales Estimates, Warehouse Allocations, Expense Recording, Expense Grouping, Payments – Part or Full, Journal Entries, Income and loss a/c, Balance sheets, Receipts – Part or Full, Contra Entries, Financial Reports, Day book.
- Tax Management: Reach accounting Software automatically calculate the taxes relevant for every bill created. The Software is designed as per the government norms for calculation of VAT. It also has the option to add any number of taxes relevant to the business. In case of change in tax percentages a change it in the software on your own. All you have to do is add your tax percentage and our software will calculate the taxes automatically. This multiple tax scheme can also be applied to multiple products on a single purchase.
- Income Management: The Company can create Quotations then the same can be converted as a Sales order or Pro-forma invoice or Invoice. From Invoice you can create Receipts as well. Accountants will be able to know what payments have been received and what are pending in the reports. You can also set reminders for receiving payments.
- Expense Management: You can create Purchase Orders then the same can be converted as bill or payments. You can also create Debit notes for purchase returns. Accountants will be able to know which purchase bills have been paid and which are pending in the reports. You can also set reminders for making payments.
- Invoicing: Generates VAT compliant invoice of the company in the specified design as requested by the client or can choose from the available templates in the software. It also converts quotes to invoice .One of the features is the software can convert the Foreign currency invoices to base currency and further calculating the VAT at UAE standard rate.
· Print Tax Invoice In Arabic: Reach software lets you print invoices in Arabic, English or both, as per the mandated guidelines of GAZT and FTA.
- Auditor View: Full-fledged Financial reports, Tax reports VAT reports, read process by auditor, with e-filing options, PF & ESI Reports, Tax Consulting Modules are some to be named.
- Check Post for VAT returns: As the software has been designed exclusively to aid individuals and entities to be VAT compliant in UAE, the set of rules and regulation laid by FTA (Federal Tax Authority) of UAE are embedded in the software. Hence any process error will be popped up by the application can be viewed .For instance wrong Tax Registration Number, incorrect taxable figure, wrong taxation period.
- Automatic Update on Tax legal Sections: As the Reach software are cloud computed software gets upgraded to update any revised tax laws and section if any in future.
- Computation Of VAT Returns: The software is inbuilt with all the detailed crucial information on tax computation Tax Assesee can fetch all the details of all the taxable transactions It lists down transactions which are included and excluded in the VAT return calculate input tax, reverse charge and output tax to avail claim if any
- Filing Of VAT Returns: The registered businesses in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file. On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form. Reach VAT software is designed to ease the process of filing returns and comes under the purview of FTA prescribed set of rules and regulations.
- * VAT Reports etc.
- Calculate VAT automatically.
- VAT support in Sales, Purchase, Sales and Purchase returns, Journal entries.
- Generate Federal Tax Authority compatible tax reports.
- VAT Paid (charged by suppliers) and Vat Collection (Charged to customers) Analysis.
- Transaction wise details of VAT paid and VAT collected.
- Attach every Vendors/Customers VAT number and other details.
- VAT supported for Goods (stocked) and Service (non-stocked) items.
- Online application accounting.
- VAT Account Reconciliation, VAT Collection & VAT Paid analysis report.
- Report export to excel and other standard formats.
- VAT returns statement compatible with Federal Tax Authority standards.
- Receipt: Receipts can either be manually entered or imported it in excel format easily.
- Payments: Payments can either be manually entered or imported it in excel format easily.
- Multi Company: Manage business through comfort of the smart phone.
- Tally Import: Tally files can be easily imported to Reach Software of various periods and manage business easily.
- Auditor’s Report: Full Financial Report are available,Read process by Auditor,Tax Reports,VAT Report with e-filing options,PF & ESI Reports,Tax Consulting Modules are some features mentioned.
- Mobile Application: Access business information through tabs and android smart phones, pick photos of expense vouchers and attach to expenses, daily profitability and other key reports can be viewed on phone.
- Bank Synchronization: Bank Statements can be imported in to Reach software through excel files.
- Security: There is complete security of data stored in the hard disk. Data can be accessed and control by creating access restriction. One time password facilities also ensures a check in the log in to the website.
- Run Business from anywhere: The business can be run access data from anywhere at your comfort. Just like checking mails from the laptop or systems.
- Free and Automatic Upgrades: At Reach Accountant you will be provided free services of upgrading the software frequently with new features and use it absolutely free.
- No investment in expensive hardware: The software is browser based. It just requires internet connection which can be connected to multi computers without using LAN and servers.
- API: The client can integrate the existing software with Reach accounting application ,
- Automatic Data Backup: Reach stores all the data in servers offsite with regular backups. Hence business information is safe and secure
· User Interface & Complexity: The software is designed to make its use friendly and easy ,no cumbersome process to operate the application and software.
- Scalability: It is an VAT accounting software which can scale with your business needs. . Some software companies offer only one version of the product and some have progressive versions depending the business type or size. Reach Accounting software offers both integrated an entry level version as well as a feature rich version which you might not need for the current business processing but will definitely need in future for business development.
Top Two Features of the Reach Accounting Software
- Outsourced Accounting: The software enables to finish the outsourced accounts in less than 30 minutes.
- Real Time Accounting: Allows client to record sales and purchases online, while finalizing accounts that is checking the Audit trail, providing MIS reports, checking Tax reports, printing financial reports and filing taxes.
Online accounting VAT software enables you to file vat returns, manage accounts and other business operations from any geographical area be it at the comfort of the house.
Technology Used
Reach has implemented the latest technology Cloud Computing to handle day to day business transactions just a click away from your browser from any part of the world.
Cloud Computing is a concept through which organizations can manage their data centres, processes and applications online via internet on the scheme of pay for use basis. Many of today’s small businesses find great advantages when adopting a virtual office environment. Rather than maintaining one centralized business location, employees are given the opportunity to work from home and connect via computer. Virtual offices can stretch across the country, or even exist within a small geographic area while still providing benefits to both employees and employers. Yet certain business functions need to be managed differently in a virtual environment. When it comes to accounting, a cloud system can improve virtual office management, especially for tasks such as expense tracking and financial report consolidation.
Benefits of Cloud Accounting
- Spread the cost of the software by making payments by monthly subscription instead of one lump sum.
- All the upgrades for cloud accounting software are carried out by the supplier at no extra cost, so you are always on the latest version.
- You can access cloud accounting software anywhere that has an internet connection, so no need to use a particular computer or be stuck in the office.
- As the name suggests, all the data is stored securely in “the cloud” which means on the supplier’s bank of servers, continually backed up, so you never have to worry again about using up your own hard-drive or taking regular backups.
- Best of all, with cloud accounting software, your accountant can share your data, so they can help you if you are stuck on recording certain transactions in your accounts, like the purchase of a new laptop. They can post their year-end journals directly, so your data is always up to date, but more importantly we can be more help to you. For example if you would like your accountant to check the figures for your VAT Return or even file it,or prepare some management accounts for you, and even help you with key decisions in your business, the sky is the limit with cloud accounting software.
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