Do I need both VAT and Corporate Tax registration?

Article 51 – Tax Registration 1. Any Taxable Person shall register for Corporate Tax with the Authority in the form and manner and within the timeline prescribed by the Authority and obtain a Tax Registration Number, except in circumstances prescribed by the Minister. 2. For the purposes of an exemption from Corporate Tax under this Decree-Law or for purposes of Clause 6 of Article 53 of this Decree-Law, the Authority may Federal Decree-Law No. 47 of 2022 and its amendments – Unofficial translation (as published by the Ministry of Finance) 54 require the relevant Person under paragraphs (e), (f), (g), (h) and (i) of Clause 1 of Article 4 of this Decree-Law, or the Unincorporated Partnership, as applicable, to register for Corporate Tax and obtain a Tax Registration Number. 3. The Authority shall, at its discretion and based on information available to the Authority, have the ability to register a Person for Corporate Tax effective from the date the Person became a Taxable Person.

4.1.3. Persons not registered for VAT and Excise Tax Taxable Persons who are not subject to VAT or Excise Tax but are within the scope of the Corporate Tax will be required to register for Corporate Tax purposes. How to register An application to register for Corporate Tax can be made on the EmaraTax portal. A Person who is already registered for VAT or Excise Tax can use their existing login details. A Person that has not previously registered with the FTA will be required to create new login credentials the first time they access the EmaraTax portal. A step by step user guide on the Corporate Tax Registration process is available on the FTA Website, and additional support can be accessed by contacting the FTA helpline on 80082923 during working hours. 4.2.1. The Corporate Tax Registration process A Person who wishes to register for Corporate Tax must submit a registration application along with the relevant supporting documentation to the FTA. The FTA will review each application and approve or reject it. Once an application is approved, the FTA will issue the Person with a TRN. Figure 1: Overview of the Corporate Tax Registration process Corporate Tax Guide I Registration of Resident Juridical Persons I CTGRJP1 13

• • The charity is not involved in undertaking trading activities. Trading activities that are undertaken in the course of carrying out the licensed activities (sales) are disregarded provided such activities do not derive any profit or profit derived is applied for the purposes of the charitable activity; and The charity must be managed by ‘fit and proper persons’. The ‘fit and proper test’ is aimed at trustees of charities (including directors of corporate trustees 5), directors of corporate charities, any employees of a charity and volunteers who act on behalf of a charity. Examples of factors that may lead to considering a person as not being a fit and proper person are involvement in tax fraud or other fraudulent behaviour including misrepresentation and/or identity theft, involvement in attacks against, or abuse of, tax repayment systems and where the person was previously removed from acting as a charity trustee by a charity regulator or disqualified from acting as a charity trustee or company director. Important: unless the Cabinet decides otherwise, only where a charity meets all the above tests can it be treated as a designated charity. The Cabinet Decision only applies to the entity named and any trading subsidiary set up by a charity will not be included. It should be noted that, in order to benefit from the special recovery rules 6 , designated charities need to apply and register for VAT. Such VAT registration also means that the designated charities will have to charge VAT on all taxable supplies they make. 2.3. VAT registration of charities Any charity carrying on a business activity in the UAE and making taxable supplies in excess of the mandatory VAT registration threshold must apply to be registered for VAT purposes. In addition, any charity carrying on a business activity and making taxable supplies or incurring expenses subject to VAT in excess of the voluntary VAT registration threshold may apply to register for VAT purposes. For further details on VAT registration, please refer to the Taxable Person Guide for Value Added Tax on the FTA website. Designated charities need to apply and register for VAT in order to benefit from recovery of input tax, disregarding whether they meet the threshold or not. 6 If the trustee is a corporate entity, the directors of that entity must meet the ‘fit and proper person’ test. Article 57 of the Decree-Law. 7 VAT Guide | Charities | VATGCH1 5