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VAT Registration

Any business which exceeds mandatory or voluntary registration thresholds may be required or may be able to register for VAT.

Register your business for as low as 500 AED

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VAT Registration in the United Arab Emirates

The Federal Tax Authority (FTA) has ensured that the procedure of VAT registration is as simple as possible thanks to its ongoing preparation and commitment. The entire VAT registration process is completed online.

Anyone who wants to register for VAT must first create an e-services account in the FTA portal using their e-mail address.

Various documents must be supplied for FTA verification during the registration process, some of which are included below for your convenience:

  •  Trade License of the Company
  • Certificate of Incorporation, Articles of Association, Power of Attorney, Etc
  • Documents Identifying Authorised Signatory: Passport, Emirates ID, Etc
  • Turnover for the last 12 Months in AED
  • Supporting Document for 12-Month Sales
  • Expected Turnover in the next 30 days
  • The estimated value of exports for one year to each GCC countries
  • The estimated value of imports for one year from each GCC countries
  • Whether you expect to deal with GCC suppliers or customers
  • Supporting documents for customs registration in each emirate (if applicable)
  • Details of Bank Account

 

Let's discuss your requirements

A business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000.

Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxable supplies and imports (or taxable expenses) is in excess of the voluntary registration threshold of AED 187,500.

Types of Registration

Any business which exceeds mandatory or voluntary registration thresholds may be required or may be able to register for VAT.

Mandatory Registration

A business must register if the total value of its taxable supplies and imports exceeds the mandatory registration threshold over the previous 12 months, or the business anticipates that the total value of its taxable supplies and imports will exceed the mandatory registration threshold in the next 30 days.

The mandatory registration threshold is AED 375,000. This threshold is not applicable to foreign businesses.

Voluntary Registration

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

The voluntary registration threshold is AED 187,500.

Exceptions for VAT registrations in UAE

According to the Federal Tax Authority, a person can seek for an exemption from VAT registration in the UAE if 100% of his supplies/sales are Zero-rated under the law. Those who wish to opt for a VAT registration exception must notify the authority of their decision using the VAT registration form. Authority will accept the application of the exception if they believe it is reasonable.

Penalty for Late-Registration under VAT

A punishment of AED 20,000 will be imposed on any company that misses the VAT Registration Number cutoff date or fails to complete the VAT registration process by the Federal Tax Authority’s deadline. This type of punishment can have a significant impact on a company’s bottom line.

 

Why Parker Russell UAE?

Since its beginning, we have been at the front of UAE VAT, effectively handling tens of thousands of clients. Our experts can walk you through the steps and assist you in compiling the paperwork required by the FTA.

Parker Russell UAE is a certified tax agent in the United Arab Emirates. Our Tax Experts have handled and regulated a variety of circumstances and provided the best available solutions to businesses to ensure that they continue to function in the most efficient and effective manner possible.

For our clients, only the best will do, and our considerable experience in the UAE will ensure that your company receives the best and most timely services without sacrificing quality.

We’ve been using Parker Russell’s services since 2011. Their Tax Agent Consultant is very professional, efficient and has been great support to our accounts team over the years.

Donna Estall

Finance Manager, Broadway Malyan Ltd.

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