Complete Guide for VAT registration in the UAE

VAT registration in UAE

VAT registration in UAE is your business acknowledgment from the government. As a VAT registered supplier of goods and services, you can legally collect VAT from customers while remitting 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, and their business reporting must be per compliance criteria. For example, your accounting books, tax documents, inward and outward supplies, and credit/debit notes should be updated and immaculate as per the defined framework.

VAT registration in UAE

VAT registration in the UAE is the first step to beginning your entrepreneurial journey. Nevertheless, having comprehensive knowledge of VAT laws is equally crucial. 


Who should have the VAT registration in UAE?

Are all businesses supposed to register under VAT in the first place? Well, not really, and 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. The Federal Tax Authorities (FTA) implemented VAT in January 2018. Additionally, the authorities opened the online portal for VAT registration in the UAE quite late, allowing businesses 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 in the UAE is mandatory. 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 ensure 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 for the 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 for 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 receive a notification upon successful registration along with the TRN via SMS and email.


VAT group registration

Usually, an individual cannot have more than one TRN (Tax Registration Number). Having said that, 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. Furthermore, if you operate through different branches in multiple emirates, you would only need a single VAT registration.

VAT registration in UAE

NR Doshi & Partners is a distinguished accounting firm based in Dubai, serving global clients since 1985. Since then, we have helped thousands of businesses with VAT registration in the UAE.

In addition, our team understands the nuances of VAT compliance and guides our customers throughout the process. VAT is both intrinsic and perplexing at times. 

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

At NR Doshi & Partners, our expertise is not limited to VAT-related services. Along with VAT services, we also provide a wide variety of accounting services. In short, we are a one-stop solution to your financial woes.

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


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