• VAT Registration

Register for VAT : Be Compliant to UAE Tax Law

The United Arab Emirates (UAE) implemented Value Added Tax (VAT) in 2018, impacting businesses of all sizes. Understanding VAT registration is crucial for ensuring compliance and managing financial obligations effectively.

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VAT Registration

VAT Registration

A business in the UAE is obligated to register for VAT if:

  • The total value of taxable supplies and imports exceeds AED 375,000 within the previous 12 months.
  • It is expected to exceed AED 375,000 within the next 30 days.

Businesses may also choose to register for VAT voluntarily if:

  • The total value of taxable supplies and imports exceeds AED 187,500.
  • The business believes voluntary registration would be beneficial for their operations.

While not mandatory, voluntary registration can offer several advantages:

  • Early recovery of input VAT
  • Improved cash flow
  • Enhanced business credibility
  • Potential tax planning opportunities

The VAT registration process is primarily conducted online through the Federal Tax Authority (FTA) portal. Key steps include:

  1. Create an FTA account: Register your business on the FTA website.
  2. Gather required documents: Prepare necessary documents such as trade license, passport copies, and bank statements.
  3. Complete the online application: Provide accurate information about your business, activities, and financial details.
  4. Submit the application: Review the information carefully before submitting.
  5. FTA verification: The FTA will review your application and may request additional documents.
  6. Issuance of VAT registration certificate: Upon successful verification, you will receive a VAT registration certificate.
  • Recordkeeping: Maintain accurate and detailed records of all VAT-related transactions.
  • Tax calculations: Understand the VAT calculation rules and ensure correct invoicing.
  • Filing VAT returns: Comply with VAT return filing deadlines and submit accurate returns.
  • Tax audits: Be prepared for potential VAT audits and maintain proper documentation.

Seeking Professional Advice

VAT can be complex, and businesses may benefit from consulting with a tax professional like RVG . We can provide guidance on registration, compliance, and potential tax optimization strategies for your Business.