In the UAE in 2018, the value-added tax (VAT) was introduced to diversify the country’s revenue sources. If your business operates in the UAE, it is essential to understand VAT registration requirements and comply with the relevant regulations to avoid penalties.
This VAT registration user guide provides a clear overview of who should register, helps prepare the document, meets industry-specific requirements, and can help avoid general mistakes for a smooth registration process.
Businesses in the UAE must assess whether they meet the VAT registration threshold to determine whether registration is mandatory or voluntary. Our Guide to Eligibility in UAE helps you understand these requirements clearly.
Mandatory Registration: Businesses with a taxable supply and import will have to register for more than 375,000 annual VATs.
Voluntary Registration: AED can opt for more than 187,500 taxable supplies and business voluntary registration.
In both cases, companies should ensure that their financial records and business activity details for VAT registration are accurate and updated.
Mandatory: If your turnover is higher than the legal limit, non-compliance may result in heavy fines.
Voluntary: voluntary registration allows businesses to reclaim VAT on business-related procurement, improves cash flows and reliability with suppliers and customers.
Below mentioned are the documents required for VAT registration in Dubai:
Ensure that your VAT registration certificate includes the right legal name and business license number to avoid rejection or delay.
Import/Export Business: Customs registration is mandatory with Dubai customs or other local authorities.
Freelancer or Advisor: Their application needs to clearly define their business activity and income.
Construction and Real Estate Companies: Contracts copies and project details should be provided as part of issuing VAT tax registration numbers.
It is best to consult a VAT specialist for sector-specific guidance.
VAT registration in Dubai does not require a stressful process. Our experts of Unicorn Global Solutions can help you compile documents, complete the application and approve your VAT registration certificate without delay.
To start, contact us today and make sure your business remains VAT-compliant!
To register for VAT in the UAE, businesses have to meet specific VAT registration requirements, including crossing compulsory or voluntary VAT limits and providing a complete set of documents such as business licenses, Emirates IDs, passport copies, and financial records.
VAT registration threshold is UAE: AED 375,000 for compulsory registration AED 187,500 for voluntary registration If your taxable supply is higher than these limits, you have to register or voluntarily register.
You will need the following: Trade license, Passport and Emirate ID copies, Financial statement, Bank details, Lease contract, Vocational Activities Details for VAT registration. These help to verify your commercial identity and eligibility.
A VAT registration certificate is an official document issued by the Federal Tax Authority (FTA) after approving your application. This includes your VAT tax registration number, business name, and effective registration date.
Yes. If their taxable expenses or revenue AED is more than 187,500, small businesses and freelancers can apply under the voluntary VAT registration category, allowing them to claim input VAT and increase business credibility
To check the validity of a VAT registration number, visit the TRN verification portal of the FTA. To verify its authenticity, enter the TRN (tax registration number).
Failure to register while meeting VAT registration requirements can cause punishment, penalty, and legal complications. The FTA considers it a serious compliance violation.
If you apply without meeting VAT registration requirements, your application may be rejected or delayed. It is important to align your financial and documents with FTA criteria before applying.
