Since the implementation of Value Added Tax (VAT) in the United Arab Emirates (UAE) on January 1, 2018, businesses operating in the country must ensure full compliance with VAT regulations, starting with proper registration with the Federal Tax Authority (FTA). Whether you’re a small business, large enterprise, or foreign company conducting taxable supplies in the UAE, VAT registration is a legal requirement once specific thresholds are met.
This detailed blog outlines the complete step-by-step process for VAT registration in the UAE, eligibility criteria, documentation requirements, common challenges, and how working with a tax consultant can simplify your journey to compliance.
Who Needs to Register for VAT in the UAE?
According to UAE VAT Law, businesses are required to register for VAT if they meet the following thresholds:
- Mandatory Registration: If the taxable turnover exceeds AED 375,000 in the last 12 months or is expected to exceed this amount within the next 30 days.
- Voluntary Registration: If the taxable turnover or taxable expenses exceed AED 187,500.
“Taxable turnover” includes all standard-rated and zero-rated supplies made in the UAE, and imported goods and services. Exempt supplies are excluded from this calculation.
Step-by-Step VAT Registration Process
Businesses must register for VAT through the Federal Tax Authority’s (FTA) online portal. The process can be completed in several steps:
Step 1: Create an e-Services Account
Visit the official FTA website (https://tax.gov.ae) and create an e-Services account using an email address and secure password. After creating the account, verify your email to activate it.
Step 2: Log In to Your FTA Portal
Use your credentials to log in to the e-Services portal. From your dashboard, select “Register for VAT” to begin the VAT registration application.
Step 3: Complete the VAT Registration Form
The VAT registration form includes several sections. Fill in each section carefully:
- Applicant Details: Legal name of the entity, trade name, and legal structure.
- Identification Details: Trade license information, legal form, and Emirates ID/passport details of the owners/partners.
- Contact Details: Registered office address, telephone number, and email address.
- Bank Details: Bank name, IBAN, and branch for refunds (optional during initial registration).
- Business Activities: Description of goods/services, customers and suppliers, and GCC activities.
- Turnover Details: Historical and projected revenue data to determine the need for registration.
- Import/Export Information: Customs registration numbers (if applicable).
- Declaration and Attachments: Upload supporting documents and complete the declaration section.
Step 4: Upload Required Documents
Supporting documents typically include:
- Trade license(s)
- Emirates ID and passport copies of owners
- Articles of association or partnership agreement
- Proof of business activity (invoices, contracts, sales data)
- Bank account confirmation letter or statement
- Customs code (if importing or exporting)
Step 5: Submit the Application
After completing the form and attaching documents, click “Submit for Approval.” You will receive an acknowledgment from the FTA. If additional information is needed, the FTA will contact you through your portal dashboard or registered email.
Step 6: Receive Your VAT Registration Certificate
If your application is approved, you will be issued a VAT registration certificate and a Tax Registration Number (TRN). You are now required to charge VAT on your taxable supplies and file returns as per the prescribed schedule.
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Common Errors to Avoid During VAT Registration
Many businesses face delays or rejections due to minor but avoidable mistakes:
- Incorrect or mismatched trade license details
- Omission of financial records supporting turnover
- Failure to disclose related party transactions
- Incorrect estimation of taxable supplies
- Uploading low-resolution or incomplete documents
Professional review before submission can help eliminate these risks.
What Happens After VAT Registration?
Once you are VAT registered, you must:
- Charge 5% VAT on taxable supplies
- Issue VAT-compliant tax invoices
- File VAT returns (monthly or quarterly)
- Pay VAT due to the FTA within the deadlines
- Maintain proper VAT records for a minimum of 5 years
Failure to comply can result in administrative penalties, which start from AED 1,000 and increase with repeated offenses.
Special Cases: VAT Registration for Non-Residents
Non-resident businesses making taxable supplies in the UAE must register for VAT even if they don’t have a physical office or presence in the country. There is no registration threshold for non-residents. They may appoint a tax agent in the UAE to act on their behalf.
PEAK BCS offers VAT registration and ongoing compliance services for non-resident businesses operating remotely or through UAE-based partners. Get in touch to learn more about our non-resident VAT support packages.
Conclusion
VAT registration in the UAE is a critical step for businesses engaged in taxable activities. Whether you are a mainland company, free zone entity, freelancer, or foreign corporation, ensuring timely and accurate registration is essential for legal compliance and smooth business operations. The process, while structured and digital, involves several technical aspects that require attention to detail and regulatory awareness.
Let PEAK Business Consultancy Services be your trusted VAT advisor. Our expert consultants will guide you through every step of the VAT registration process, help you stay compliant with UAE tax laws, and handle all correspondence with the FTA. Visit www.peakbcs.com and let us simplify your VAT journey in the UAE today.
