The Federal Tax Authority (‘FTA’) has issued two new declaration templates to be submitted along with VAT registration and Tax group applications through the Emara Tax portal. The same aims to enhance consistency and transparency in the information provided by taxpayers, both declaration templates are attached for your reference.
1. Turnover Declaration Letter (For Standalone Entities)
The FTA has removed the “Taxable Expenses” column from the turnover declaration template and focuses solely on sales (turnover). Earlier the applicants were required to disclose both taxable sales and expenses to support VAT registration.
It is clarified that VAT registrations will now be assessed based on the level of taxable supplies made or expected to be made by the business. However, while the expense details have been removed from the declaration letter, they remain part of the VAT registration application form on the Emara Tax portal. This is in line with the latest amendments in the Article 8 of VAT Executive Regulations which requires the Taxable person to prove to the Authority that there is an intention to make supplies
2. Declaration of Tax Group Eligibility
This new declaration is mandatory for the Tax group registrations and amendments, confirming that all members:
- Meet the related party and eligibility conditions under Articles 9 and 10 of the VAT Executive Regulations, and
- Are not sole establishments, branches, or foreign entities
Also there is a requirement to include a turnover declaration for each group member for immediately preceding 12 months periods (i.e., total of standard-rated, zero-rated, intercompany, and out-of-scope sales)
Click to download the format of Declaration 1
Click to download the format of Declaration 2