VAT Registration

Any business that surpasses the mandatory or voluntary registration thresholds may be required to register for VAT, or may be able to do so.

Register your business for as low as 500 AED

VAT Registration in the United Arab Emirates

Anyone wishing to register for VAT must first create an e-services account using their e-mail address on the FTA site.

During the registration procedure, many papers must be provided for FTA verification, some of which are listed below for your convenience:

Let's discuss your requirements

The Company’s Trade License
Documents Identifying Authorised Signatory: Certificate of Incorporation Power of Attorney, and so on Passport, Emirates ID, and so forth.Turnover in AED for the previous 12 months

Expected Turnover in the Next 30 Days (Supporting Document for 12-Month Sales) The estimated value of exports to each GCC country over the course of a year.

The expected annual value of imports from each GCC country. Whether you anticipate to work with GCC suppliers or customers, you should be prepared.

Each emirate’s supporting documentation for customs registration (if applicable) Bank Account Information If a company’s taxable supply and imports surpass the statutory registration threshold of AED 375,000, it must register for VAT.

Furthermore, if the total value of a company’s taxable supply and imports (or taxable expenses) exceeds the voluntary registration threshold of AED 187,500, the company may choose to register for VAT voluntarily.

Types of Registration

Any business that surpasses the mandatory or voluntary registration thresholds may be required to register for VAT, or may be able to do so.

Mandatory Registration

If the total value of a company’s taxable supplies and imports exceeded the mandatory registration threshold in the previous 12 months, or if the company expects the total value of its taxable supplies and imports to exceed the mandatory registration threshold in the next 30 days, the company must register.

AED 375,000 is the obligatory registration requirement. This criterion does not apply to overseas companies.

Voluntary Registration

If a business does not meet the mandatory registration criteria and the total value of its taxable supplies, imports, or taxable expenses in the previous 12 months exceeds the voluntary registration threshold, or if the total value of its taxable supplies, imports, or taxable expenses will exceed the voluntary registration threshold in the next 30 days, the business may apply to register.

AED 187,500 is the voluntary registration barrier.

Exceptions for VAT registrations in UAE

In the United Arab Emirates, there are some exceptions to the VAT registration requirements. A person can seek an exemption from VAT registration in the UAE if 100 percent of his supplies/sales are Zero-rated under the law, according to the Federal Tax Authority. Those who wish to opt for a VAT registration exception must use the VAT registration form to notify the authority of their decision. If the authority believes the application of the exemption is acceptable, it will be accepted.

Penalty for Late-Registration under VAT

Any company that misses the VAT Registration Number cutoff date or fails to finish the VAT registration process by the Federal Tax Authority’s deadline will be fined AED 20,000. This type of penalty can have a major financial impact on a corporation.

Why choose AlFahad Tax Consultancies in the United Arab Emirates?

We’ve been at the forefront of UAE VAT since the beginning, efficiently handling tens of thousands of clients. Our professionals can guide you through the process and help you compile the papers that the FTA requires.

AlFahad Tax Consultancies is a United Arab Emirates-licensed tax advisor. Our Tax Experts have dealt with a wide range of situations and equipped businesses with the best available solutions to ensure that they continue to operate in the most efficient and effective manner possible.

Only the best will do for our clients, and our extensive expertise in the UAE will ensure that your business receives the best and most timely services possible without sacrificing quality.

We’ve been using AlFahad Tax Consultancies’s services . Their Tax Agent Consultant is very professional, efficient and has been great support to our accounts team over the years.

Fizan Ansari