Overview
Value Added Tax (VAT) was introduced in the UAE on January 1, 2018, at a standard rate of 5%. Understanding when and how to register is essential for every business operating in the Emirates.
Mandatory vs. Voluntary Registration
Mandatory registration is required when a business’s taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to exceed this threshold in the next 30 days.
Voluntary registration is available for businesses whose taxable supplies and imports — or taxable expenses — exceed AED 187,500.
Required Documents
To register for VAT, you will typically need:
- Trade license
- Emirates ID and passport copies of the authorized signatory
- Bank account details and statements
- Financial records and turnover details
- Customs registration documentation (if applicable)
The Registration Process
- Create an account on the FTA’s EmaraTax portal
- Complete the VAT registration application form
- Upload all required documents
- Submit the application and await FTA review
- Receive your Tax Registration Number (TRN)
The FTA typically processes applications within 20 business days, though this can vary.
Ongoing Obligations
Once registered, businesses must:
- Charge VAT on taxable supplies at the applicable rate
- File VAT returns quarterly (or as specified by the FTA)
- Maintain proper tax invoices and records for at least five years
- Pay any VAT liability by the return filing deadline
Common Mistakes to Avoid
- Late registration after exceeding the mandatory threshold
- Incorrect input tax recovery claims
- Failure to account for VAT on imported services (reverse charge)
- Inadequate record-keeping
Get Expert Support
VAT compliance can be complex, especially for businesses dealing with mixed supplies or cross-border transactions. Daribah provides comprehensive VAT advisory services to ensure your business meets all obligations efficiently.