VAT Registration in UAE
The UAE government requires all individuals and companies with an annual turnover of at least AED 375,000 to register for VAT. The law came to effect on January 1, 2018. All parties meeting the aforementioned threshold limit should register for VAT to continue carrying out operations in the country.
Interested parties can register for VAT in UAE through the official online portal of the Federal Tax Authority (FTA). There are a number of requirements that the applicant must fulfill before registering for VAT, such as whether to choose a voluntary or mandatory registration, registering as part of a tax group, or as a standalone entity.
How to Register for VAT in UAE?
If you are looking to register for VAT in UAE and don’t know where to start, we at Youssry & Co would be delighted to help you. We are bespoke VAT consultants in Dubai that have been providing premium services for VAT registration in UAE for businesses of all caliber.
We understand the importance of timely registration. Complying with regulatory requirements can help prevent penalties and other issues. Our VAT registration services in Dubai ensure that your application is conducted appropriately in accordable with the Federal Tax Authority (FTA) requirements.
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VAT Registration Process in UAE - Documents required for Registration of VAT in UAE
The UAE government has made the TAX registration process straightforward. The process is pursued online and requires only a stable internet connection and a computer. When registering for VAT, however, you must provide the following documents:
Required Documents for an Individual Registering for UAE VAT:
- The applicant’s resident permit.
- Signed request letter of the applicant.
- A copy of the applicant’s passport.
Required Documents for An Entity Registering for UAE VAT as An Authority:
- Application letter with an authorized signature.
- Decree copy
- Copy of Act of incorporation document
Required Documents for a Dubai-based Company Registering for UAE VAT:
- A copy of the trade license.
- Applicant’s application letter signed by the company’s authorities.
VAT Registration Process in UAE - Documents required for Registration of VAT in UAE
The UAE government has made the TAX registration process straightforward. The process is pursued online and requires only a stable internet connection and a computer. When registering for VAT, however, you must provide the following documents:
Required Documents for an Individual Registering for UAE VAT:
- The applicant’s resident permit.
- Signed request letter of the applicant.
- A copy of the applicant’s passport.
Required Documents for An Entity Registering for UAE VAT as An Authority:
- Application letter with an authorized signature.
- Decree copy
- Copy of Act of incorporation document
Required Documents for a Dubai-based Company Registering for UAE VAT:
- A copy of the trade license.
- Applicant’s application letter signed by the company’s authorities.
Other Requirements of VAT Registration in Dubai, UAE
As per the Federal Tax Authority (FTA), the following business are the ones who should and can apply for VAT in UAE registration :
- if annual turnover is more than AED 375,000 (a must registration)
- The annual turnover is between AED 187,500 and AED 375,000 (optional registration)
- Annual turnover is less than AED 187,500 (registration not required)
There are a couple of listed violations and respective penalties that released in the provisions of Cabinet Decision No. 40 on Administrative Penalties for Violations of Tax Laws in the UAE that is adopted by the UAE Council of Ministers. Every single violation against the Federal Law No. 7 of 2017 on Tax Procedures, Federal Decree-Law No. 7 of 2017 on Excise Tax, and Federal Decree-Law No. 8 of 2017 on Value-Added Tax (VAT) shall fined in accordance with the provisions in the Cabinet Decision No. 40.
In order to avoid being penalize, it is better to follow the laws laid down by the FTA and the government.
Who is exempted from VAT in UAE?
Certain categories of goods and services are exempted from VAT in the UAE, including healthcare services, education services, certain financial services, and the sale or lease of residential buildings that are not intended for commercial use.
What is the standard rate of VAT in UAE?
Who is required to pay VAT, UAE?
Is VAT registration mandatory in UAE?
What are the documents required for VAT registration in UAE?
Who is required to register for VAT in UAE?
What is the minimum turnover for VAT in UAE?
Types of UAE VAT Registration
A) Mandatory VAT Registration
Business owners with a place of residence in the state of UAE and whose supplies in the state have exceeded AED 375,000 in the previous 12 months must register for UAE VAT. Likewise, suppose the business expects to surpass the mandatory registration threshold of AED 375,000 within the next 30 days. In that case, it must also register for UAE VAT. No matter the threshold for registration, businesses seeking to operate in the UAE must register under VAT irrespective of their place of residence.
Types of Business: Resident:
- Supplies valued at more than AED 375,000
- During the past year. Expected to exceed in the coming 30 days.
Types of Business: Non-Resident:
- There is no threshold limit
- Regardless of the threshold, VAT registration is mandatory
B) Voluntary VAT Registration
Companies with a place of residence in the state of UAE are provided with the option of voluntarily applying for VAT registration if they are not required to do so. This can be done only if annual purchases or taxable expenses do not fall below the voluntary registration threshold. It is 50% of the mandatory registration threshold that is the Voluntary Registration Threshold of AED 187,500.- Supplies/ Taxable Expenses exceed 187,500 AED
- Within the past 12 months. Expected to exceed within the next 30 days of the current fiscal year
Get VAT-Ready with Our Expert Consultants in UAE!
Prepare your business for the upcoming VAT implementation with the help of our experienced VAT consultants in UAE. Contact us today and speak to a VAT advisor from our team to get started on your VAT journey.