On 1st January 2018, The United Arab Emirates introduced Value-added Tax (VAT). The goal was to create another type of revenue for the usage of offering excellent public types of assistance and other facilities. VAT Registration in UAE was presented at a 5% rate on goods and services with exemptions of some special cases including essential food things, medical services, and schooling. 

When a business is enlisted for VAT with FTA then it will be alluded to as a “Taxable Person” under FTA law. Though individuals enrolling for VAT will be alluded to as “Natural Person”. After effectively getting enrolled for VAT with FTA, a business or individual will be given 15 digits identifying proof number by FTA also known as TRN (Tax Registration Number).

Who must register for VAT?

Registration of VAT is an obligatory prerequisite for UAE organizations with a turnover of at least 375,000 AED in any year. Companies that surpassed this limit had to enrol for VAT in the final quarter of 2017, as the tax get implemented from 1 January 2018. Also, organizations that are not at present needed to enlist can choose to register deliberately where the yearly turnover surpasses AED 187,500. It will be significant for such organizations to evaluate and choose whether it will be better for them to enrol or not, depending upon their particular conditions. 

Companies without a UAE foundation are additionally needed to enrol for VAT when they are obliged to charge and gather UAE VAT on any worth of local sales. Companies uncertain about their commitment or capacity to enlist for VAT should look for additional counsel.

An excellent option: Grouping 

Numerous business groups should be happy as they can enlist for VAT under single group entry. This holds some significance with those working through various subsidiaries, especially in the event that they utilize the same accounting and bookkeeping platform, in spite of the fact that it may not really be reasonable for all.

Also read: The Role of Cloud Accounting in VAT Returns

Exception from VAT Registration 

A Business that needs to apply for an exemption from Tax Registration on the premise that the entirety of its supplies is zero-rated under VAT guidelines will apply in a similar manner very much like an ordinary VAT application with simply filling the exceptional part of the application. 

The FTA Authority will audit the solicitation in the application to acknowledge the special case from VAT enlistment or give notice that this specific solicitation is dismissed. 

Registering your business for VAT

Businesses have the option to register online from the website of the UAE government. Type www.tax.gov.ae on the search bar and click eServices options. Afterwards, you’ll have to Sign-up using an email id (preferably the company’s official email address) then wait for a confirmation from FTA on your email account. 

Now, you will have to fill the sections (total 8) that appeared on the website with authentic and confidential information. Below mentioned are those mandatory sections that must be filled with correct data. 

  1. About the applicant
  2. Information of the Business (Entity to be registered)
  3. Contact Data
  4. Banking Information 
  5. Business relationships (it’s optional)
  6. About the VAT registration
  7. Declaration
  8. Review & Submit

Submit the finished application form for approval and check the confirmation email from FTA. When your form is submitted you can check your status of enrollment by seeing your account Dashboard.

Documents needed for VAT Registration

The soft copies of the documents that must be uploaded with the application are: 

  • Documents classifying the authorized signatory, for example – Emirates ID,  passport copy
  • Trade license 
  • Bank account details
  • Complete Contact Details of business
  • Company Emirates and Owners ID when visa Status is UAE Resident
  • Memorandum/Articles of Association and Formation Certificate (if available)
  • Summary of business exercises
  • Turnover for the last 12 months & Expected turnover in next 30 days
  • Monthly Taxable Expenses Details of last 12 Months and expected expenses in next 30 days
  • Business Operational Bank Account Details and IBAN Verification Letter

Closing Note: 

VAT is new in the UAE and a couple of different nations in the Middle East. It is another reason for some Dubai based firms who make it hard to fathom the method. Just remember that you understood the guidelines and fill in the details shrewdly for mistake-free registration and future VAT filing. 

If there is any issue, you can take the help of the Zyla Accountants in Dubai who will help you understand the process and complete your VAT registration on your behalf. 

+971 58 535 6176 or

+971 04 871 6770 or 

Email us at: [email protected]


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