VAT Registration

The United Arab Emirates introduced Value Added Tax (VAT) on January 1, 2018. The standard VAT rate is 5%, which applies to most of the goods and services.

However, the UAE has subjected certain goods and services to a 0% VAT rate or exempted certain businesses from VAT, provided they meet the specific conditions.

Who needs to register for VAT in the UAE?

Every person conducting business activities in the UAE shall assess whether it requires to get VAT registration.

The mandatory VAT registration threshold is AED 375,000 for UAE-resident businesses.

Nonetheless, companies that have taxable supplies or expenses in excess of AED 187,500 can also voluntarily register for UAE VAT. For non-resident businesses making taxable supplies in the UAE, there is no registration threshold. They must register for VAT purposes.

Businesses exceeding the thresholds must obtain VAT registration. Failure to do so may attract penalties under the VAT law. Timely registration ensures compliance. Additionally, companies can collect VAT on supplies they make and get input tax reimbursement for expenses incurred.

How do I register for VAT in the UAE?

The UAE government has simplified the VAT registration procedure. Through the Federal Tax Authority website, businesses can register for VAT online.

To register for VAT, businesses in the UAE need to have the following documents ready: 

• Trade license of the company
• Bank account information
• Complete registered business address
• Description of business activities
• Certificate of Incorporation 
• Memorandum of Association
• Articles of Association
• Turnover declaration for the last 12 months
• Projected values of imports and exports
• Supporting documentation for sales and purchases declared
• For the authorized signatory: passport and Emirates ID copies
• Customs registration details (if applicable)

By ensuring accurate and complete information when filing the VAT registration application. , you can minimise the risk of any delays or complications in VAT Registration Application Approval by the Tax Authority.

Timely and proper VAT registration is the first step towards compliance with the UAE’s VAT regulations. Careful preparation and compliance with all regulatory requirements from the outset are beneficial. This also ensures effective VAT implementation within your business.