VAT

FAQ

Local businesses and international corporations operating in the UAE must GO FOR VAT Registration in UAE within 30 days of their taxable supplies and imports crossing the mandatory VAT registration in UAE threshold of AED 375,000. Enterprises not meeting this mandatory limit can still opt for voluntary VAT registration in UAE

Legal compliance: First and foremost, having a VAT registration helps your business comply with UAE tax laws. If your company's supply threshold exceeds AED 375,000 and you fail to register this within 30 days, your business gets exposed to unwanted penalties.

Importance of VAT registration :

Mandatory VAT Registration in UAE :

Who should go for VAT Registration in UAE:

Voluntary VAT Registration in UAE :

You have to mandatorily VAT Registration in UAE if your business’s taxable supplies exceed AED 375,000 within the past 12 months or if you anticipate surpassing this limit in the next 30 days. Taxable supplies cover all your sales within the UAE, including VAT. Failing to complete your VAT registration in UAE under these circumstances can lead to penalties.

If the total value of your taxable supplies and imports exceeds the voluntary VAT Registration in UAE threshold of AED 187,500 but does not exceed AED 375,000, you can select this option. Voluntary registration for VAT in the UAE benefits startups and small businesses as it allows them to claim input tax credits on purchases.

Documents Required for VAT Registration in UAE

Organization-related documents

1. Trade Licence: A valid trade licence is required for the UAE VAT registration. This document serves as proof that your business is legally allowed to operate in the UAE.

2. Memorandum of Association (MOA): If you are registering a company, you have to provide the MOA. This document outlines the company's structure and the roles and responsibilities of its members.

3. Bank Account Details: The FTA will need details of your business's bank account for transactions related to VAT.

4. Email ID and Contact Details: Your business's email ID and contact details are needed for communication with the FTA.

5. Office Address: The physical address of your office is required. This helps the FTA verify your business location.

6. Yearly Turnover Report: A report of the yearly turnover of your business is needed. This helps determine your eligibility for VAT registration.

7. Customs Details: If your business is involved in import or export, you may need to provide customs details.

8. Emirates ID of Partners: Similarly, copies of the Emirates IDs of all the partners or owners are required.

9. Power of Attorney Documents: If someone else is registering on behalf of your business, you'll need to provide power of attorney documents.

10. Club, Charity, or Association Registration Documents: If you're registering a club, charity, or association, you may need to provide additional registration documents.

11. Other Documents: The FTA can request clarification at any time to complete your registration for VAT in the UAE. In such cases, please share the additional documents as soon as possible.

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