Business owners in the UAE have been able to register for VAT since October 1, 2017. If you’re navigating this process for the first time, we’ve got you covered. This guide breaks down everything you need to know about VAT registration in the UAE, from eligibility to deregistration, in a clear and straightforward way. Let’s dive in!
Understanding VAT Registration Eligibility
VAT or Value Added Tax, applies to businesses based on their taxable supplies—think standard rated sales, zero rated supplies, imports and reverse charges. The UAE sets specific thresholds to determine who needs to register. If your business exceeds AED 375,000 in taxable supplies over the past 12 months or within the next 30 days, mandatory registration kicks in.
For those below this mark but above AED 187,500, voluntary registration is an option. This also applies if your expenses hit that same AED 187,500 threshold. Non residents conducting taxable business in the UAE? You’re required to register, no matter the amount. We recommend checking your figures carefully to see where you stand.
Step by Step Process to Register for VAT
Ready to register? The process is user friendly and starts on the Federal Tax Authority [FTA] website. Since October 1, 2017, businesses have been able to sign up through the online portal. Here’s how we suggest you proceed:
- Step1
First, head to the FTA site and set up a user account. You’ll receive an email to verify your details, click the link and you’re in.
- Step 2
- Step 3
- Step 4
How to Deregister from VAT
Sometimes, businesses need to step back from VAT. You can apply to deregister if you stop making taxable supplies or if your taxable supplies drop below AED 187,500 for 12 months [voluntary threshold] or AED 375,000 [mandatory threshold]. Voluntary registrants must stay enrolled for at least a year before exiting.
Submit your deregistration request through the FTA portal. They’ll notify you if approved and confirm the effective date. Each GCC state including the UAE, sets its own minimum registration period so double check local rules. It’s a straightforward process, but timing is key.
Zaebek: Your Partner for Financial Success
At Zaebek, we’re committed to driving your business toward financial prosperity. Our tailored services cover every angle of your financial needs, ensuring you stay competitive and confident. From VAT registration support to comprehensive tax planning, we’ve got the expertise to help your business grow. Let us handle the numbers so you can focus on what you do best—running your company. Contact us today to see how we can assist.
FAQs
Who needs to register for VAT in the UAE?
Businesses with taxable supplies over AED 375,000 must register. Those above AED 187,500 can opt in voluntarily and non residents doing taxable business have to sign up regardless of turnover.
What happens if I miss the VAT registration deadline?
No penalties applied for late registration until April 30, 2018 as long as you paid taxes due from January 1, 2018. After that, fines may apply check with the FTA for current rules.
Can I register for VAT if my turnover is below AED 187,500?
No, unless your expenses exceed AED 187,500 or you’re a non resident with taxable activities. The voluntary threshold is the minimum entry point.
How long does it take to get a TRN?
Once you submit a complete application, the FTA typically processes it within a few days to a week. You’ll receive your TRN via email.
What’s the benefit of VAT group registration?
It simplifies tax filing with one TRN and return plus no VAT on intra group supplies. It’s ideal for companies with multiple related entities.
Wrapping Up
Registering for VAT in the UAE doesn’t have to feel overwhelming. Whether you’re hitting the mandatory threshold, opting in voluntarily or exploring a VAT group, the FTA’s online portal makes it manageable. Gather your documents, mark your deadlines and take it step by step. Need help? We’re here to guide you through the process and beyond.