Commercial Activities Certificate-Overview
UAE implemented a VAT system in 2018, and the economy has become much more efficient. UAE has taken several actions to enhance its tax system, with FTA playing a key role. Having a Commercial Activities Certificate would be cost-effective with large VAT discounts.
What Is a Commercial Activities Certificate?
A CCA is a document that the FTA issues in response to a request from a VAT-registered person and is intended to be used to help the recovery of VAT that the registrant has paid in a foreign country, whether or not a double tax avoidance agreement is in place.
Certain commercial transactions outside of the UAE need the upfront payment of VAT. The Commercial Activities Certificate will assist the parties in requesting a refund of the upfront tax. Therefore, the CCA offers proof that the applicant has a VAT registration, is a company in the UAE, or is a government organization.
Benefits Of Having A Commercial Activities Certificate
Regardless of DTAAs, certificate holders can use the Commercial Activities Certificate to receive a refund on advance payments made in countries other than the UAE. The benefits of tax certificates, including the Commercial Activities Certificate, primarily apply to the parties engaged in international business. These certificates allow the holders to benefit from international tax agreements between nations, such as the Double Taxation Avoidance Agreements (DTAA), to avoid paying several taxes on the same supply. In addition, even in the absence of DTAA, the Commercial Activities Certificate aids in obtaining a refund of the advance VAT paid in foreign transactions in a nation other than the UAE.
Procedure To Obtain A Commercial Activities Certificate
- In the first step, the person who is taxable or the business must log in to the FTA portal to apply for a Commercial Activities Certificate.
- For successfully logging in to the portal you should have an account registered with the FTA. If you do not have one, then you will first have to get your account registered with the help of tax agents or a tax agency in the UAE.
- You may then click on the link over your dashboard to apply for the certificate.
- When you click this link, your screen will display an application form. One has to fill the form with the correct details, after which the next step is the payment will come.
- You will have to pay online to get your certificate over the portal.
- Upon the successful completion of the payment, your Commercial Activities Certificate can now be downloaded.
- For the protection of your certificate, there is a password levied on the certificate, and it will only open when you put in the correct password. This password should be kept confidential.
- If you face difficulty following the above procedure, a UAE tax agency might help you get it right.
Documents Required
The FTA demands a certain set of documents to check the credibility of your company or individual. You are only eligible to apply for the Commercial Activities Certificate if you have performed VAT registration.
- Tax registration number.
- Trade license copy.
- Request a letter with the applicant's signature and stamp.
While all these documents are quite straightforward, getting them all together can be a time-consuming procedure for you. Therefore, you might consider outsourcing this to a tax agency. Renowned tax agencies like FlyingColour tax have experienced professionals who will help you with the entire procedure of getting your Commercial Activities Certificate so that you can focus on things that need your attention.
Need Help?
Taxpayers could have trouble comprehending the paperwork the FTA may require to register for certain services successfully. If a mistake occurs, the process may be delayed. Consult FlyingColour Tax, the most reputable tax agency, for assistance with the proper paperwork and processes so that you may receive your items without being bothered. This will help you prevent delays.
To learn more about Commercial Activities Certificate, book a free consultation with one of the Flyingcolour team advisors.
Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.