VAT Registration Services

Value Added Tax (VAT) registration in the United Arab Emirates (UAE) is a mandatory requirement for businesses that meet certain criteria as determined by the Federal Tax Authority (FTA). VAT was introduced in the UAE on January 1, 2018, and businesses that exceed the specified turnover threshold are required to register for VAT. Here’s an overview of the VAT registration process in the UAE

Before proceeding with VAT registration, businesses need to assess whether they meet the criteria for mandatory registration. As of my last update in September 2021, the mandatory VAT registration threshold is AED 375,000 (United Arab Emirates Dirhams) of taxable supplies within the last 12 months.

Even if a business does not meet the mandatory registration threshold, it can opt for voluntary registration if its taxable supplies exceed AED 187,500 within the last 12 months. Voluntary registration allows businesses to recover input VAT on their expenses

Businesses should collect the necessary information and documents required for the VAT registration application. This includes details about the company, business activities, turnover, financial statements, trade licenses, and other relevant documentation.

The VAT registration process is carried out through the FTA’s online portal. Businesses need to create an account on the portal if they don’t already have one.

After accessing the FTA portal, businesses need to complete the VAT registration application form, providing accurate information about their operations, activities, and financial details

Once the application is submitted, the FTA reviews the information provided. If any additional documentation or clarification is required, the FTA may request it from the applicant.

Upon approval of the application, the FTA issues a VAT registration certificate to the business. This certificate contains the VAT registration number that should be used in all VAT- related communications and transactions

Once registered, businesses are required to comply with VAT regulations. This includes collecting VAT from customers on taxable supplies, maintaining accurate records, filing VAT returns, and paying VAT to the authorities as required

Registered businesses are required to submit regular VAT returns through the FTA portal. VAT returns include details of sales, purchases, input VAT, output VAT, and other relevant information. The filing frequency depends on the business’s turnover and may be monthly or quarterly.

If a business’s taxable supplies fall below the mandatory threshold, it can apply for voluntary de-registration. This involves submitting a request through the FTA portal and complying with any exit procedures specified by the FTA.

It’s important for businesses to adhere to the VAT registration requirements and deadlines to avoid penalties and ensure compliance with UAE tax laws. Businesses should also consider seeking professional assistance, such as consulting with tax advisors or accountants, to ensure a smooth and accurate VAT registration process.