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VAT registration in UAE

How to apply for VAT registration in the UAE – A comprehensive guide


VAT registration in UAE is basically your business acknowledgment from the government. As a VAT registered supplier of goods and services, you are legally allowed to collect VAT from customers as well as remit the same to the government.

Only VAT registered companies can do the following:

  1. Impose VAT charges on taxable supplies of goods and services
  2. Claim the VAT credit on their purchases 
  3. Claim the VAT credit on their initial costs
  4. Use reversal charge mechanism on imported goods
  5. VAT payment to the government
  6. VAT return filing periodically

Besides this, VAT-registered companies are obliged to comply with VAT regulations. Their business reporting must be in accordance with compliance criteria. For example, your accounting books tax documents, inward and

VAT registration in UAE

outward supplies, credit, and debit notes should be updated and immaculate as per the defined framework. 

VAT registration in UAE is the first step, to begin with, to start off your entrepreneurial journey. Nevertheless, having comprehensive knowledge of VAT laws is equally paramount. 


Who should have the VAT registration in UAE?

Are all businesses supposed to register under VAT in the first place? Well, not really. It only applies to businesses crossing certain thresholds. There is a defined annual budget turnover and if your business falls into the category, you must register for VAT.

There are essentially 3 sorts of VAT registrations in the UAE

  1. Mandatory VAT registration – Businesses with an annual turnover of more than AED 375,000
  2. Voluntary VAT registration (Optional) – Businesses with an annual turnover of more than AED 187,500
  3. Exemption from VAT registration

The UAE joined the list of countries having VAT quite late actually. The Federal Tax Authorities (FTA) implemented VAT in January 2018. The online portal for VAT registration in the UAE was opened to businesses and allowed them to be well prepared beforehand. Furthermore, FTA has systematically carried it out in various phases to ensure a smooth transition. Mostly all goods and services have 5% VAT on them. 


How to apply for VAT registration in UAE

VAT registration in UAE

As mentioned earlier, businesses exceeding their turnover of AED 375,000 compulsorily have to register under VAT. They need to sign up on the FTA web portal for online registration. Moreover, the registration deadlines are listed down by FTA depending on the business turnover. 

VAT registration is a mandatory process. However, as a business owner, you should fundamentally understand the VAT guidelines and details you need to complete VAT registration in the UAE.

Additionally, FTA facilitates businesses by giving enough time to be VAT ready in

advance. The primary purpose is to avoid unnecessary delays and hassles. Thus it is recommended to be thorough with the VAT registration process to make sure you don’t provide any incorrect or misleading information. 


Documents required for the VAT registration in the UAE

  1. Trade license copy
  2. Passport copies of owners/partners
  3. Emirates ID of owners/partners
  4. Contacts details & address
  5. Memorandum of association (MOA)
  6. Bank account details of the company
  7. IBAN
  8. Business turnover details of last 12 months (The FTA declaration letter format)
  9. Cost and Expenses
  10. Balance sheets, Audited reports
  11. Customs authority registration code
  12. Company’s registered address
  13. Information regarding business activities. For example, trading, import/export
  14. The name of the GCC country/countries in case you’re doing business with any of them
  15. The name of the tax group (They may ask the tax group number for all entities)

VAT registration process steps

  1. First, sign up on the FTA web portal
  2. Create your account
  3. Follow the registration process as instructed
  4. Enter relevant information and details
  5. Submit the application

Once done, it will generate a unique TRN (Tax registration number) assigned to your business

You will also be notified of successful registration along with TRN via SMS and email. 


VAT group registration

Usually, an individual cannot have more than one TRN (Tax Registration Number). However, businesses or associated parties sharing common financial and regulatory objectives may register as a VAT group. 

This type of VAT registration in the UAE is known as Tax group registration. However, if you are operating through different branches in multiple emirates, you would only need a single VAT registration. 

VAT registration in UAE

We are a distinguished accounting firm based in Dubai serving global clients since 1985. We have helped thousands of businesses with VAT registration in UAE. 

We understand the nuances of VAT compliance and guide our customers throughout the process. VAT is intrinsic and can be perplexing sometimes. 

We have an exceptional standing in the finance space owing to our impeccable track record. Our consummated accounting professionals and CPAs are FTA authorized. They eliminate all complexities and loopholes to ensure your flawless VAT registration in the UAE.

Besides VAT registration, we offer a gamut of VAT and accounting services that cater to all your financial requirements. 

If you are looking for authentic assistance regarding VAT registration services in the UAE, we are just a call away. Simply write to us at enquiries@nrdoshi.ae. We will get back to you shortly. 


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