Stop Confusing Paperwork! The Simple Checklist for UAE VAT Registration

Introduction

Value Added Tax (VAT) was introduced in the United Arab Emirates on 1st January 2018 as part of the country’s initiative to diversify revenue sources beyond oil. VAT is levied at a standard rate of 5% on most goods and services supplied in the UAE.

Every business operating in the UAE must determine whether it is required to register for VAT under the Federal Tax Authority (FTA) based on its turnover for the last 12 months and other business activities.

Who Needs to Register for VAT in the UAE?

Businesses are required to register for VAT based on their taxable turnover threshold. The UAE VAT law defines two types of registration categories:

1. Mandatory VAT Registration

A business must register for VAT if:

• Its taxable supplies and imports exceed AED 375,000 in the last 12 months, or
• It expects to exceed AED 375,000 in the next 30 days.

This applies to both UAE-based companies and foreign entities conducting taxable business in the UAE.

2. Voluntary VAT Registration

A business may choose to register voluntarily if:

• Its taxable supplies and imports exceed AED 187,500, or
• Its expenses (subject to VAT) exceed AED 187,500.

Voluntary registration allows small and growing businesses to claim input tax credit and appear more credible to partners and suppliers.

VAT Registration Requirements in UAE

To register your business for VAT, you must meet the following key requirements:

Documents Required for VAT Registration

When registering with the Federal Tax Authority (FTA) via the EmaraTax portal, businesses must submit the following documents:

1. Trade License copy (for all related business entities).
2. Certificate of Incorporation or Partnership Agreement (if applicable).
3. Passport copies of the owner(s), partners, and authorized signatories.
4. Emirates ID copies of the owner(s) and signatories.
5. Memorandum of Association (MOA) or Power of Attorney (if applicable).
6. Business Contact details (email, phone number, address).
7. Bank account details of the business. (OPTIONAL)
8. Turnover declaration for the last 12 months. (should be signed and stamped by the owner of the company and must be printed on the company’s letterhead);
9. Customs registration details (if applicable) for import/export businesses.
10. Sample Sales and Purchase Invoices (signed and stamped)

Steps to Register for VAT in the UAE

1. Create an FTA account on EmaraTax Portal.
2. Complete the online VAT registration form — enter trade license details, business activity, turnover, and contact info.
3. Upload supporting documents as listed above.
4. Submit the application for FTA review.
5. Once approved, you’ll receive a TRN (Tax Registration Number) and VAT Certificate via your FTA dashboard.

After Registration – Key Responsibilities

Once registered, a business must:

• Charge 5% VAT on all taxable supplies.
• File VAT returns quarterly or monthly as per FTA schedule.
• Maintain accounting records for at least 5 years.
• Issue tax invoices in compliance with UAE VAT law.
• Pay VAT dues on time to avoid penalties.

Penalties for Non-Registration

Failure to register for VAT on time can result in administrative penalties from the FTA, including:

• AED 10,000 fine for late VAT registration.
• Additional penalties for delayed VAT returns or incorrect filing.

How Finexus Advisory Can Help

At Finexus Advisory, our expert tax consultants provide comprehensive VAT registration, filing, and advisory services across the UAE. Whether you’re a start-up or an established company, we ensure that your VAT processes are accurate, compliant, and stress-free.

✅ VAT registration
✅ VAT De-registration
✅ VAT return filing
✅ VAT Health Check
✅ VAT Refund
✅ VAT Exception