VAT Registration

Value Added Tax (VAT) registration in the UAE is a legal requirement for businesses that meet the threshold set by the Federal Tax Authority (FTA). Introduced on January 1, 2018, VAT applies to most goods and services, ensuring businesses contribute to the UAE’s tax system while remaining transparent and compliant.

Determine Eligibility for VAT Registration

• Mandatory VAT Registration: Businesses with taxable supplies of AED 375,000 or more in the past 12 months must register for VAT.
• Voluntary VAT Registration: Businesses with supplies or expenses exceeding AED 187,500 may opt for voluntary registration to reclaim input VAT.

Required Information for VAT Registration

Before applying, businesses must prepare the following documents:

• Valid trade license
• Company details & business activities
• Financial statements and turnover records
• Passport & Emirates ID copies of business owners/partners
• Bank account details
• Contact information & authorized signatory details

VAT Registration Process via FTA Portal

1. FTA Portal Access – Create an account on the Federal Tax Authority portal.
2. Application Submission – Fill out the VAT registration form with accurate details.
3. Review by FTA – The authority may request further clarification or documentation.
4. Issuance of VAT Certificate – Upon approval, the business receives a VAT Registration Certificate with its unique TRN (Tax Registration Number).

VAT Compliance Obligations

Once registered, businesses must:

• Charge 5% VAT on taxable supplies.
• Maintain accurate VAT records & invoices.
• File VAT returns (monthly or quarterly, depending on turnover).
• Pay VAT due on time to avoid penalties.
• Display their VAT TRN on invoices and official documents.

VAT Deregistration in UAE

Businesses that no longer meet the threshold may apply for voluntary deregistration via the FTA portal. This requires settling all outstanding VAT obligations before approval.

Benefits of Professional VAT Registration Services

• Avoid costly penalties & fines.
• Ensure error-free application with correct documentation.
• Save time with expert handling of VAT compliance.
• Stay updated with the latest FTA tax regulations.

Conclusion

VAT registration is an essential part of doing business in the UAE. Whether mandatory or voluntary, compliance with FTA regulations ensures smooth operations, credibility, and long-term growth. Partnering with expert VAT consultants in Dubai and across the UAE can make the registration process efficient, accurate, and stress-free.