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VAT Registration in UAE

VAT Registration Services in Dubai, UAE

The UAE government requires all individuals and companies with an annual turnover of at least AED 375,000 to register for VAT.  The law came to effect on January 1, 2018. All parties meeting the aforementioned threshold limit should register for VAT to continue carrying out operations in the country.

Interested parties can register for VAT in UAE through the official online portal of the Federal Tax Authority (FTA). There are a number of requirements that the applicant must fulfill before registering for VAT, such as whether to choose a voluntary or mandatory registration, registering as part of a tax group, or as a standalone entity.

How to Register for VAT in UAE?

If you are looking to register for VAT in UAE and don’t know where to start, we at Farahat & Co would be delighted to help you. We are bespoke VAT consultants in Dubai that have been providing premium services for VAT registration in UAE for businesses of all caliber.

We understand the importance of timely registration. Complying with regulatory requirements can help prevent penalties and other issues. Our VAT registration services in Dubai ensure that your application is conducted appropriately in accordable with the Federal Tax Authority (FTA) requirements.

At Farahat & Co, our number one goal is to provide impartial VAT services to clients across the UAE. That is a virtue we do not compromise.

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vat registration in UAE

VAT Registration Process in UAE - Documents required for Registration of VAT in UAE

The UAE government has made the TAX registration process straightforward. The process is pursued online and requires only a stable internet connection and a computer. When registering for VAT, however, you must provide the following documents:

Required Documents for an Individual Registering for UAE VAT:

  • The applicant’s resident permit.
  • Signed request letter of the applicant.
  • A copy of the applicant’s passport.

Required Documents for An Entity Registering for UAE VAT as An Authority:

  • Application letter with an authorized signature.
  • Decree copy
  • Copy of Act of incorporation document

Required Documents for a Dubai-based Company Registering for UAE VAT:

  • A copy of the trade license.
  • Applicant’s application letter signed by the company’s authorities.

Other Requirements of VAT Registration in Dubai, UAE

As per the Federal Tax Authority (FTA), the following business are the ones who should and can apply for VAT in UAE registration :

  • if annual turnover is more than AED 375,000 (a must registration)
  • The annual turnover is between AED 187,500 and AED 375,000 (optional registration)
  • Annual turnover is less than AED 187,500 (registration not required)

There are a couple of listed violations and respective penalties that released in the provisions of Cabinet Decision No. 40 on Administrative Penalties for Violations of Tax Laws in the UAE that is adopted by the UAE Council of Ministers. Every single violation against the Federal Law No. 7 of 2017 on Tax Procedures, Federal Decree-Law No. 7 of 2017 on Excise Tax, and Federal Decree-Law No. 8 of 2017 on Value-Added Tax (VAT) shall fined in accordance with the provisions in the Cabinet Decision No. 40.

In order to avoid being penalize, it is better to follow the laws laid down by the FTA and the government.

vat registration in UAE

Types of UAE VAT Registration

a) Mandatory VAT Registration

Business owners with a place of residence in the state of UAE and whose supplies in the state have exceeded AED 375,000 in the previous 12 months must register for UAE VAT. Likewise, suppose the business expects to surpass the mandatory registration threshold of AED 375,000 within the next 30 days. In that case, it must also register for UAE VAT.  No matter the threshold for registration, businesses seeking to operate in the UAE must register under VAT irrespective of their place of residence.

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vat registration in UAE

NOTE: UAE Council of Ministers adopted Cabinet Decision No. 40 on Administrative Penalties for Violations of Tax Laws in the UAE, listing some violations and their penalties. Federal Decree-law No. 7 of 2017 on Excise Tax and Federal Decree-Law No. 8 of 2017 on Value-Added Tax (VAT) carry fine provisions per Cabinet Decision No. 40. It is best to follow the FTA and government laws to avoid penalties.

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Frequently Asked Questions

Who is exempted from VAT in UAE?

Certain categories of goods and services are exempted from VAT in the UAE, including healthcare services, education services, certain financial services, and the sale or lease of residential buildings that are not intended for commercial use.

What is the standard rate of VAT in UAE?

The standard rate for VAT in UAE is 5%.

Who is required to pay VAT, UAE?

VAT is paid by the end consumer of goods or services. However, businesses are responsible for collecting VAT from their customers and remitting it to the government.

Is VAT registration mandatory in UAE?

Yes, VAT registration is mandatory for businesses in the UAE that meet certain turnover thresholds.

What are the documents required for VAT registration in UAE?

The documents required for VAT registration in the UAE include a copy of the trade license, passport copies of the business owner and authorized signatories, and financial statements for the previous 12 months.

Who is required to register for VAT in UAE?

Businesses with an annual turnover of AED 375,000 or more are required to register for VAT in the UAE. Businesses with an annual turnover between AED 187,500 and AED 375,000 can choose to register voluntarily.

What is the minimum turnover for VAT in UAE?

The minimum turnover for VAT registration in the UAE is AED 375,000 per year.