Commercial Activities Certificate UAE VAT Law

What Is a Commercial Activities Certificate?

A Commercial Activities Certificate is an official paper. The Federal Tax Authority (FTA) issues it. This certificate shows that a business or person is registered for tax in the UAE. Before, the Ministry of Finance gave this certificate. Now FTA manages all details about VAT-registered people and companies. This new process helps businesses get the certificate faster and with less hassle.

Businesses use this certificate when they deal with companies outside the UAE. They may pay VAT in advance in other countries. With this certificate, they can apply for a refund of VAT paid outside the UAE. The FTA wants every VAT-registered business to have access to this service.

Why Do Businesses Need a Commercial Activities Certificate?

This certificate helps a business or individual prove their tax status in the UAE. It’s important during international transactions. Many countries ask for proof of VAT registration. If you show this certificate, you can claim a refund on advance VAT paid abroad.

Businesses also use this certificate when double tax agreements exist. These agreements stop the same supply from being taxed in both countries. Even if there’s no agreement, this certificate helps you ask for a VAT refund in many situations.

Main Benefits

Allows refund of advance VAT paid in other countries.
Supports international trade without repeated tax charges.
Helps meet requirements for cross-border transactions.
Proves the business is registered for VAT in the UAE.

What Are the Steps To Get a Commercial Activities Certificate?

The FTA’s online portal lets registered users apply for the certificate. If you want this certificate, you must first register on the FTA portal. You need to open a tax certificate account. After you receive your login details, you log in to the FTA portal.

On the portal’s dashboard, there is a link to request the certificate. You must fill in the details and pay the fees online. When your request is approved and the fee is paid, you can download the certificate. The certificate may have a password. The FTA portal tells you how to open the file.

Steps in Order

Register on the FTA portal.
Open a tax certificate account.
Log in and find the request link on the dashboard.
Fill out the online form with correct details.
Pay the certificate fee using the online system.
Download the certificate after approval.

What Documents Do Applicants Need?

You must be VAT registered and have a valid TRN number. You should keep a copy of your business’s trade license. You also need a signed and stamped request letter from your company. Having these documents ready before you apply saves time.

Documents Required

Valid VAT registration and TRN number.
Copy of trade license.
Signed and stamped request letter from the applicant.

How Mubarak Al Ketbi (MAK) Auditing Helps You

Mubarak Al Ketbi (MAK) Auditing has experienced professionals who can assist you. They offer a free one-hour consultation. You can ask about tax registration, certificate applications, and FTA correspondences. Their team helps with tax accounting, preparing tax returns, filing, and maintaining tax records. They advise you about compliance, periodic reviews, and internal controls.

They also help with the latest tax law changes, train employees, and guide on tax planning. Their professionals ensure your business always meets tax rules. They help you with tax audits and organize your files for FTA checks.

Services Offered

Help with VAT registration and certificates
Tax accounting and record-keeping
Preparation and filing of tax returns
Compliance checks and periodic reviews
Training for employees on tax matters
Guidance on the impact of tax on your business

How Can Mubarak Al Ketbi (MAK) Auditing Help You?

If you want to get your Commercial Activities Certificate without running around like a chicken with its head cut off, you should talk to Mubarak Al Ketbi (MAK) Auditing. Their experts answer your questions, sort out your paperwork, and guide you from start to finish!

For more information, visit our office:
- Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
Or contact/WhatsApp us at +971 50 276 2132

FAQs on Commercial Activities Certificate UAE VAT Law

When can I claim a VAT adjustment for bad debt?

You can claim the adjustment if you’ve issued a proper tax invoice, paid VAT to FTA, written off the receivable in your books, waited six months from the supply date, and notified the customer.

What evidence must I keep for a bad debt VAT claim?

You must keep: • Tax invoices • Proof of VAT payment • Accounting records showing the write-off • Copies of communication with the customer

How do I report the VAT adjustment in my return?

Use the adjustment column in Box 1 of your VAT return for each relevant emirate. Enter the VAT amount you want to reclaim.

What if the customer pays after I’ve claimed bad debt relief?

If the customer later pays, you must declare the VAT for that payment in your next VAT return.

How can Mubarak Al Ketbi (MAK) Auditing help with bad debt VAT adjustments?

We check your eligibility, review your records, prepare your VAT return, and make sure you follow every law to reclaim your VAT with no headaches.