Business owners in the UAE must register for VAT if their taxable supplies and imports exceed the mandatory threshold. This guide explains the eligibility and process.
Eligibility for Registration
The thresholds for businesses to register for VAT are based on the value of their taxable supplies, which include standard-rated supplies, zero-rated supplies, reverse charges received, and imported goods.
1. Mandatory Registration
A business must register for VAT if the total value of its taxable supplies and imports within the UAE exceeds the mandatory registration threshold of AED 375,000, either during the previous 12 months or within the upcoming 30 days.
2. Voluntary Registration
A business can voluntarily register for VAT if the total value of its taxable supplies and imports within the UAE exceeds the voluntary registration threshold of AED 187,500, either during the previous 12 months or within the upcoming 30 days. Startups may also register if their expenses exceed this threshold.
3. Non-resident Registration
A non-resident doing taxable business in the UAE needs to register for VAT regardless of the above-mentioned thresholds.
How to register for VAT?
Businesses can register online through the Federal Tax Authority (FTA) portal. The process involves:
Create Account
Sign up on the EmaraTax (FTA) portal.
Verify & Log in
Confirm email details and access the dashboard.
Complete Form
Fill in business details, turnover figures, and projected revenue.
Submit Documents
Upload all required proof of identity and business license.
Required Documents
- Passport Copy & Emirates ID
- Trade License
- Certificate of Incorporation
- Bank Account Letter
- Memorandum of Association (MOA)
Supporting Documents
- Passport copy
- Emirates ID
- Trade licence
- Any other official documents authorizing your business to conduct trade within the UAE.
VAT Group Registration
If a company has multiple entities that trade with each other, it is possible to register as a VAT group. In a group registration, all of the entities within the VAT group are treated as one entity for VAT purposes. The supplies made between members of a VAT group are disregarded (no VAT is due on them).
Deregistration
A VAT-registered person in the UAE can apply to de-register if they meet any of the following conditions:
- The registered person no longer makes taxable supplies.
- The value of their taxable supplies is less than the voluntary registration threshold of 187,500 AED over a period of 12 consecutive months.
- The value of their taxable supplies is less than the mandatory threshold of 375,000 AED over a period of 12 months.