VAT Registration in UAE

What Is VAT Registration in UAE?

VAT registration is the process of signing up with the FTA to collect VAT on behalf of the government. Once registered, businesses are issued a VAT registration number and are responsible for filing VAT returns and paying the collected VAT.

VAT Registration in the UAE: A Comprehensive Guide

The UAE introduced Value Added Tax (VAT) in 2018 to diversify its economy and generate additional revenue. Registering for VAT is crucial for businesses that meet certain thresholds, as it allows them to collect and remit VAT to the Federal Tax Authority (FTA). Below, we’ll guide you through everything you need to know about VAT registration in the UAE, including the process, eligibility, requirements, and more.

Who Needs to Register for VAT in the UAE?

VAT registration in the UAE can be mandatory or voluntary, depending on your annual taxable turnover: Small businesses or startups that do not meet the mandatory threshold can benefit from voluntary registration, allowing them to recover input VAT on their expenses.

Mandatory Registration: Businesses must register if their taxable turnover exceeds AED 375,000 in the previous 12 months or is expected to exceed this threshold in the next 30 days.

Voluntary Registration: Businesses can voluntarily register if their taxable turnover exceeds AED 187,500 but falls below AED 375,000.

Is VAT Registration Mandatory?

VAT registration is mandatory for businesses exceeding the AED 375,000 threshold. Failure to register on time can result in penalties imposed by the FTA. Voluntary registration is optional but advisable for eligible companies wanting to benefit from input VAT recovery.

How to Register for VAT in the UAE

The VAT registration process is managed online through the FTA portal. Here’s a step-by-step guide:

  1. Create an FTA Account: Visit the Federal Tax Authority website and create an account.
  2. Log in to the VAT Portal: Use your credentials to access the VAT registration page.
  3. Complete the Application Form: Provide accurate details about your business, such as:
  • Personal and business information
  • Details of your taxable activities
  • Annual turnover and import/export figures
  • Bank account details
  • Declaration of eligibility for registration
  1. Upload Required Documents: Attach the necessary documents (see the list below).
  2. Submit and Await Approval: Once you’ve completed the application, submit it. Upon approval, the FTA will review your application and issue a Tax Registration Number (TRN).

Documents Required for VAT Registration in the UAE

To register for VAT, you need the following documents:

  • Trade license of your business
  • Passport copy of the owner/partners
  • Emirates ID of the owner/partners
  • Proof of business location (e.g., rental agreement or utility bill)
  • Bank account details (IBAN)
  • Financial records showing your annual turnover
  • Details of imported/exported goods and services (if applicable)

Ensure all the information provided is accurate to avoid delays.

VAT Registration Fees

There are no VAT registration fees in the UAE. However, once registered, businesses must comply with VAT filing and payment obligations. Non-compliance may attract penalties.

Obtaining a VAT Certificate

After registering, the FTA will issue a VAT registration certificate, which includes your Tax Registration Number (TRN). You can download your VAT certificate from the FTA portal. This certificate is essential for invoicing your customers and claiming input VAT on your business expenses.

Online VAT Registration

The entire VAT registration process in the UAE is conducted online via the FTA portal. Businesses can also amend their details, check their registration status, and obtain VAT certificates through this platform.

How to Check a VAT Number

To verify a VAT number in the UAE, follow these steps:

  1. Visit the FTA website.
  2. Use the VAT Verification Tool.
  3. Enter the VAT number you wish to verify.
  4. The system will confirm the number’s validity and provide associated business details.


VAT Deregistration

Businesses can apply for VAT deregistration if certain conditions are met, such as:

  • Ceasing taxable supplies
  • Falling below the mandatory registration threshold
  • You must submit a deregistration request through the FTA portal within 20 days of becoming eligible. Failing to deregister may result in penalties.

Claiming Input VAT Before Registration

Input VAT incurred on goods and services purchased before VAT registration can sometimes be claimed. However, you need proper documentation and records showing these expenses were used for taxable activities. Consult the FTA for specific guidelines.

FAQ

General Questions

FAQ About VAT Registration in the UAE

Mandatory registration is required for businesses with an annual turnover exceeding AED 375,000. Voluntary registration is available for those with a turnover between AED 187,500 and AED 375,000.

Yes, businesses must surpass the AED 375,000 threshold. Non-compliance can result in penalties.

Registration is completed online via the Federal Tax Authority (FTA) portal. You create an account, fill out the application form, upload the required documents, and submit the application for approval. Upon approval, a tax registration number (TRN) is issued.

You need:

  • Trade license
  • Passport and Emirates ID copies
  • Proof of business location
  • Bank details (IBAN)
  • Financial records showing turnover
  • Details of imports/exports (if applicable)

No, registering for VAT is free. However, businesses must fulfill filing and payment obligations to avoid penalties.

Once registered, you can download the VAT certificate, which includes your TRN, from the FTA portal.

The FTA manages VAT registration, compliance, returns, and collections in the UAE. It oversees enforcement and provides guidelines and tools for businesses.

The entire VAT registration process is online through the FTA's e-services portal. and we can assist for vat registration in dubai

Voluntary registration is for businesses with a turnover between AED 187,500 and AED 375,000, which allows them to recover input VAT on expenses.

You can apply for deregistration if you cease taxable activities or fall below the mandatory threshold. The application must be submitted through the FTA portal within 20 days of eligibility.

The VAT Verification Tool on the FTA website allows you to verify a VAT number. Entering the VAT number returns the associated business details.

Yes, input VAT on pre-registration expenses can be claimed if proper documentation shows these expenses were related to taxable activities. Always consult the FTA for specifics.

 

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What Are the VAT Registration Requirements?

Businesses must meet the annual turnover threshold and provide accurate documentation to register with the FTA.

Can Businesses Amend Their VAT Registration?

Businesses can amend their VAT details through the FTA portal if they change their operations, address, or other relevant information.

VAT Registration in Major Emirates

VAT registration across the UAE, including Abu Dhabi, Dubai, and Sharjah, follows the same process. Businesses in these emirates can register through the FTA portal. However, local business regulations may vary, so consult your licensing authority for clarity.

VAT Registration in Dubai

Entities in Dubai usually follow the same steps as above but are often assisted by VAT consultants due to Dubai’s fast-paced business environment.

VAT Registration in Abu Dhabi and Sharjah

The VAT registration process in Abu Dhabi and Sharjah is identical to that in Dubai. Businesses in these emirates should prepare the required documentation and apply through the FTA online portal.

Key Takeaways

  • VAT registration is mandatory for businesses with an annual turnover above AED 375,000.
  • Voluntary registration is available for companies above AED 187,500 but below AED 375,000.
  • Registration, amendments, certificates, and deregistration can all be managed through the FTA online portal.
  • Accurate documentation is essential to avoid delays or penalties.

By ensuring compliance with VAT regulations, businesses can contribute to the UAE’s economic growth while accessing benefits like input VAT recovery. Always consult the FTA or a qualified consultant for assistance in complex cases.

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