If you own a business in the UAE, it is essential to know about Value Added Tax (VAT) registration. Introduced in January 2018, VAT is a consumption tax applied to goods and services. The Federal Tax Authority (FTA) regulates VAT in the UAE, and all businesses meeting the criteria must register to stay compliant.
In this blog, we’ll explain who needs to register, the documents required, and a step-by-step guide on how to register your company for VAT in UAE.
Who Needs to Register for VAT in UAE?
Not all businesses are required to register. The FTA has set turnover thresholds:
- Mandatory VAT Registration
- Businesses with annual taxable turnover above AED 375,000 must register.
- Voluntary VAT Registration
- Businesses with turnover or taxable expenses above AED 187,500 can choose to register.
Even if your business does not meet the threshold, voluntary registration can be beneficial as it allows you to claim input tax credits.
Benefits of Registering for VAT in UAE
Registering your company for VAT has multiple advantages:
- Legal compliance with UAE tax laws
- Ability to charge VAT on sales and services
- Claim input VAT on business expenses
- Improved business credibility with clients, suppliers, and banks
- Smooth international trade and contracts
Documents Required for VAT Registration in UAE
Before starting the registration process, ensure you have these documents ready:
- Trade license copy
- Company’s Memorandum of Association (MOA)
- Passport and Emirates ID copies of shareholders/partners
- Contact details of the company (email, phone, address)
- Company bank account details (IBAN)
- Proof of business turnover (financial statements or invoices)
- Customs registration documents (if applicable)
Step-by-Step: How to Register Your Company for VAT in UAE
1. Create an FTA Account
- Go to the Federal Tax Authority (FTA) website: https://tax.gov.ae.
- Sign up for an e-services account using your email.
2. Login to the VAT Portal
- Once your account is verified, log in to access VAT registration services.
3. Fill Out the VAT Registration Form
Provide details including:
- Business legal structure (LLC, Sole Proprietorship, Free Zone Company, etc.)
- Trade license number and issue date
- Partner/shareholder details
- Business activity and expected turnover
4. Upload the Required Documents
Attach scanned copies of all necessary documents in PDF or JPEG format.
5. Submit the Application
- Review your application carefully.
- Submit it to the FTA portal for approval.
6. Receive Your TRN (Tax Registration Number)
Once approved, your business will be assigned a Tax Registration Number (TRN). This confirms that your company is officially VAT registered in the UAE.
Penalties for Not Registering for VAT in UAE
Failing to register your company for VAT can result in heavy fines:
- AED 20,000 penalty for late VAT registration
- Additional penalties for delayed or incorrect VAT filings
To avoid fines, register on time and maintain proper VAT records.
Final Thoughts
Knowing how to register your company for VAT in UAE is vital for legal compliance and smooth business operations. By preparing the required documents and following the FTA’s step-by-step process, you can successfully register and stay compliant with tax laws.
If you are unsure about the process, hiring a VAT consultant in UAE can save time, ensure error-free registration, and help manage VAT filings efficiently.
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