VAT Registration in the UAE: Procedure, Documents & More

VAT for Business
Registration Process
Documents Required for VAT Registration
Check your VAT Registration
FAQs

If you plan to launch a business in the UAE, you may need to register for VAT (Value Added Tax) first. Companies that meet the set criteria for VAT must register with the Federal Tax Authority (FTA) and submit VAT returns at the end of every tax period. So, how does VAT registration in the UAE work for businesses? Read on as we review the required documents and the online process to apply for VAT registration in the UAE.

wooden blocks spelling VAT placed on dirhams — *The UAE VAT tax registration applies to most businesses*

DOES VAT APPLY TO MY BUSINESS?

All businesses must meet the following requirements to apply for UAE VAT registration.

VAT is obligatory in the UAE on businesses whose taxable supplies and imports over the past year exceed the mandatory threshold of AED 375k.
It also applies to businesses that foresee the total value of their taxable supplies and imports exceeding AED 375k in the next 30 days. This threshold does not apply to foreign companies.
Similarly, if the total value of taxable supplies and imports or taxable expenses during the last 12 months exceeds AED 187.5k or it is expected that the taxable supplies and imports or taxable expenses will exceed AED 187.5k in the next 30 days, the voluntary registration threshold is met.

WHAT IS INCLUDED IN TURNOVER FOR VAT TAX IN THE UAE?

Turnover for VAT in the UAE includes taxable supplies (all goods and services supplies made in the UAE).
The value of taxable goods and services imported and a whole or part of the other business.
It also includes the value of taxable supplies made by the acquired whole or part of the business.
On the other hand, taxable supplies include all goods and services made in the UAE. Only a limited number of supplies are exempt from the taxable supply for VAT.

Check out the comprehensive guide on the UAE tax system for further guidance.

How can businesses register for UAE VAT Tax?

Unregistered businesses in the United Arab Emirates may register for Value Added Tax via the Federal Tax Authority online portal.

The VAT registration process in the UAE is a simple two-step process. First, set up an e-service account and second, access the new account and complete the VAT registration.

Keyboard with Online Registration key in orange — *VAT registration in the UAE procedure is straightforward*

Create an E-services account

An FTA-approved e-Services account is mandatory for businesses to register for VAT in the UAE successfully. To start the process, visit the Federal Tax Authority website and follow these steps to open an e-Service account:

Select the Sign-up button on the home page and fill in details like a password, email ID and security code.
After filling out and submitting the form, an automatic email will be generated and sent to your registered email ID for verification.
Log into your new e-Services account with your username and password.

Register for VAT

Your e-Services account will be created after you verify your email address. After logging in successfully, you will be asked to ‘Register for VAT’ and taken to the “Get Started Guide.”

The guide details specific requirements related to VAT registration in the UAE. Divided into short sections, it discusses the process and the data required to complete it.

It is strongly recommended that you read the guide carefully to avoid errors. After you have read it, click “Proceed”, and a VAT registration form will appear.

The form includes eight sections, with each requiring specific details.

About the Applicant
Details of the Applicant
Banking Details
Contact Details
About VAT Registration
Business Relationships
Declaration
Review and Submit

Applicants must complete all mandatory fields of a current section before moving on to the next. Remember:

You should also save your progress as you fill out the form.
After completing the sections with the necessary details, click Save and Review. At this point, you can check your answers before submitting them.
Click on Submit for Approval after you have reviewed the details. The application’s status on the Dashboard will change to Pending.
You will also receive an email confirming that your application has been received.

Women working on paid invoice on laptop — *VAT registration in the UAE deadline has to be adhered to*

What are the documents needed for UAE VAT tax registration?

Documents to be submitted while registering your business on the FTA e-services portal include the following:

A copy of the business trade license.
Passport copies of the partners or company owners as declared on the license.
Copy of the company’s Memorandum of Association (MOA).
Bank account details.
Contact details of the company.
Emirates ID copy held by the business partners or owners.
Nature of performed businesses and activities.
An income statement from the last 12 months.
Anticipated income & expenditure for the upcoming 30-days after receiving the Tax Registration Number

How to check VAT registration?

You can always review the progress of your application after completing the requirements on the UAE VAT registration portal. Knowing the following terms can help you keep track of the application.

Drafted: The registration form hasn’t been completed or submitted.
Pending: The form has been received by the FTA and is either under review or withheld until additional information is received from the applicant.
Suspended: Your registration form has been suspended, a Tax Registration Number (TRN) has been received, and your tax group registration has been approved.
Rejected: The FTA has rejected the registration form.
Approved: Registration has been approved, and your business is registered for VAT.

Late Registration

Those who fail to register for VAT under the deadline set by the Federal Tax Authority are liable to pay a fine of AED 10k. Registered users can access the “late registration penalty” option to pay the late fee on their dashboards.

Once the FTA reviews your application and finds it satisfactory, it will issue a Tax Registration Number (TRN). The official confirmation will be in the form of a VAT Certificate.

FREQUENTLY ASKED QUESTIONS

WHAT IS THE STANDARD VAT RATE FOR COMPANIES IN THE UAE?

The standard rate of VAT in the UAE is 5%.

DO I NEED TO REGISTER FOR VAT IN THE UAE?

Yes, if you have a business in the UAE with imports and supplies that exceed AED 375k annually, you are required to register for VAT.

HOW TO REGISTER TO VAT ONLINE IN THE UAE?

To register for VAT online in the UAE, you’ll need to visit the official Federal Tax Authority website to create a new e-services account. Use the sign-up button on the homepage and provide the required details. After completing the form, click the submit button to receive an automated email on your verified email ID. You can now start your registration for VAT in the UAE.

WHAT SECTORS ARE EXEMPT FROM VAT IN THE UAE?

Sectors in the UAE that are VAT exempted include:

Real estate transactions exempt from VAT
Certain financial services
Bare land
Local passenger transport

WHAT IF I NEED TO AMEND MY VAT REGISTRATION IN THE UAE?

All amendments you make after registering must be updated on your records within 20 business days. Some VAT registration updates and modifications, like those under the category of ”Business Relationships,” require approval from the Federal Tax Authority. For a complete list of amendments that require approval from the Federal Tax Authority, visit their official website.

That’s a wrap on our guide to VAT registration in the UAE for businesses. Apart from the eligible companies, businesses from some sectors do not need to register for VAT. Check out this VAT exemption in the UAE guide to learn more.

If you need help navigating the complicated processes of Value Added Tax, some excellent tax and VAT consultants in the UAE can help you.

How businesses can register for VAT in the UAE

DOES VAT APPLY TO MY BUSINESS?

WHAT IS INCLUDED IN TURNOVER FOR VAT TAX IN THE UAE?