Insights about Commercial Activities Certificate under VAT in the UAE

The UAE’s economy has been significantly streamlined in the last three years since the introduction of Value Added Tax (VAT) on 1st January 2018.  In the fourth year of the introduction of VAT, the government shifted the responsibility of issuing tax-related certificates such as Commercial Activities Certificates to the Federal Tax Authority (FTA). The tax agents in the UAE have hailed the move as it makes it easier for the taxable persons to obtain the commercial activities certificates.

Earlier, the Ministry of Finance (MoF) was the competent authority in charge of issuing Commercial Activities Certificates in the UAE. It’s a welcome shift as the FTA has the complete data of corporates and individuals registered for VAT in the UAE. In this article, we would discuss what a Commercial Activities Certificate is and how tax consultants in Dubai can help you obtain it without any hassle. Read ahead.

What is meant by the Commercial Activities Certificate? 

A Commercial Activities Certificate enables the holders to claim a refund for the VAT paid outside the UAE, whether Double Tax Avoidance Agreements (DTAA) are applicable or not. In many cases, business transactions outside the UAE require payment of VAT in advance. The Commercial Activities Certificate will help the parties involved in such transactions to claiming the refund of the tax paid in advance. Consult with the FTA-approved tax agents in Dubai to receive robust advice on the Commercial Activities Certificate.

What are the benefits of obtaining a Commercial Activities Certificate?

Tax-related certificates such as the Commercial Activities Certificate comes in handy mainly for persons involved in cross border transactions. Tax-related certificates issued by the FTA ensures that the holders can take advantage of the international tax treaties such as DTAAs. It prevents the holders of such certificates from incurring additional tax charges over the same supply.

In the case of Commercial Activities Certificates, the certificate holders can get a refund on advance payments in jurisdictions outside the UAE irrespective of the DTAAs.  Consult with registered tax agents in Dubai to navigate the process of obtaining the Commercial Activities Certificates.

How to obtain a Commercial Activities Certificate in the UAE?

Taxable persons have to log in to the online portal of FTA to apply for a Commercial Activities Certificate in the UAE. The applicants must have an FTA account to log into the portal, but those who don’t have an account yet can register a new one with the help of tax agents in Dubai. In the first step, applicants need to register and open a tax certificate account in the FTA portal. Once they receive the credentials for the tax certificate account, the applicants can make a ‘log in’ to the FTA portal.

A link will appear on the dashboard of the main page from where the applicants can make a request for the certificate. Fill in all the required details in the request form and proceed to pay the fee for Commercial Activities Certificate online. The certificate can be downloaded after the payment. The certificate will be password protected but can be opened with a password. FTA-approved tax agents in Dubai will perform the task on behalf of the tax registrants.

Documents required to obtain Commercial Activities Certificate

Only those taxable persons who have already performed VAT registration in the UAE can apply for Commercial Activities Certificates. The following documents are required while applying for Commercial Activities Certificate in the UAE,

  1. Tax Registration Number (TRN)
  2. Copy of trade license
  3. Signed and stamped request letter from the applicant

Taxable persons may find it hard to understand the types of documents FTA asks them to provide. Further, the procedure may be delayed if any error happens. To avoid such delays, consult with registered tax consultancy firms in Dubai who will help the taxable persons with the documentation and procedure.

Tax Agents in Dubai Help you Obtain Commercial Activities Certificate

Obtaining a Commercial Activities Certificate in the UAE is important for taxable persons who conduct cross border transactions. A Commercial Activities Certificate enables the tax registrants to avoid advance VAT payments on transactions outside the UAE. The taxable persons, however, needs to overcome the challenges of obtaining the certificates, for which expert assistance of tax consultancy firms in Dubai such as Jitendra Chartered Accountants (JCA) is required.

JCA’s tax agents in Dubai will provide consultation on various VAT and accounting matters to clarify the clients’ queries. JCA’s experienced tax consultants in Dubai will assist the taxable persons in tax-related activities such as VAT registration, VAT Return filing, Excise Tax registration, VAT accounting, tax record maintenance, periodic tax reviews, compliance checks, arranging training sessions for employees etc. Call JCA’s tax consultants in Dubai today to resolve all tax-related issues and requirements.

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