Introduction
Since the introduction of Value Added Tax (VAT) in 2018, businesses operating in the UAE must comply with VAT regulations to avoid penalties. For entrepreneurs and startups, one of the most common questions is: how to register for VAT in UAE for new company?
VAT registration is mandatory for businesses crossing certain revenue thresholds, while others may choose voluntary registration to gain credibility and claim input tax. This guide explains the process, requirements, and benefits of VAT registration for new companies in the UAE.
Who Needs to Register for VAT in UAE
Before learning how to register for VAT in UAE for new company, it’s important to understand whether your business qualifies.
- Mandatory Registration
- Businesses with annual taxable supplies and imports exceeding AED 375,000 must register for VAT.
- Voluntary Registration
- Businesses with annual taxable supplies or expenses above AED 187,500 can opt for voluntary registration.
This ensures that even new companies with smaller turnovers can benefit from VAT registration if they expect growth.
Documents Required for VAT Registration in UAE
When applying for VAT, ensure you have the following documents ready:
- Trade license copy
- Passport copy of owner/partners
- Emirates ID of owner/partners
- Memorandum of Association (MOA)
- Bank account details of the company
- Contact information (email, phone number)
- Financial statements or revenue forecast (for new companies)
- Customs registration details (if applicable)
How to Register for VAT in UAE for New Company: Step-by-Step
Step 1: Create an e-Services Account with FTA
- Visit the Federal Tax Authority (FTA) website – www.tax.gov.ae
- Register for an e-Services account using your email and details.
Step 2: Login to the FTA Portal
- Access the FTA dashboard and select VAT Registration.
Step 3: Complete the VAT Registration Form
Provide details such as:
- Business information (trade license, activities, legal structure)
- Contact details (address, phone, email)
- Bank details for refunds
- Expected turnover or financial forecasts
Step 4: Upload Required Documents
Attach trade license, passports, Emirates IDs, and other necessary documents.
Step 5: Submit Application for Review
The FTA reviews your application. If approved, you will receive a Tax Registration Number (TRN).
What Happens After VAT Registration?
Once registered, your company will:
- Receive a TRN (Tax Registration Number)
- Charge 5% VAT on taxable goods and services
- File VAT returns quarterly (or monthly, in some cases)
- Maintain proper accounting and tax records for at least 5 years
Benefits of VAT Registration for New Companies in UAE
- Legal compliance – Avoid fines and penalties from FTA
- Business credibility – A TRN enhances trust with customers and suppliers
- Input tax recovery – Claim VAT paid on business expenses
- Smooth trade – VAT registration is often required for working with large clients and government contracts
Penalties for Not Registering for VAT in UAE
If your new company meets the mandatory threshold but fails to register, penalties include:
- AED 10,000 fine for late VAT registration
- Additional fines for delayed VAT returns or incorrect filings
FAQs on How to Register for VAT in UAE for New Company
1. Is VAT registration mandatory for all new companies in UAE?
No. It is mandatory only if taxable supplies exceed AED 375,000 annually. Below that, voluntary registration is an option.
2. How long does VAT registration take?
On average, it takes 20 business days if documents are correct.
3. What is TRN in UAE?
TRN stands for Tax Registration Number, issued by the FTA once your VAT registration is approved.
4. Can a company register voluntarily for VAT?
Yes. If annual turnover or expenses exceed AED 187,500, voluntary registration is possible.
Conclusion
Understanding how to register for VAT in UAE for new company is vital for ensuring legal compliance and smooth business operations. By registering through the FTA portal, submitting the right documents, and maintaining proper records, new companies can avoid fines while enhancing credibility in the market.
If your company expects to grow or deal with VAT-registered suppliers, registering early is a smart move.
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