Introduction

The implementation of Value Added Tax (VAT) in the UAE has drastically changed the taxation environment in the country, making economic sustainability and regulatory adherence a reality. All businesses conducting operations in the UAE need to comply with VAT regulations by registering with the Federal Tax Authority (FTA) to avoid any penalties and maintain seamless business proceedings. This press release gives detailed information on VAT Registration in the UAE, VAT Registration in Dubai, and FTA VAT Registration needs.

Significance of VAT Registration in the UAE

The law requires VAT registration for companies that exceed the minimum threshold established by the Federal Tax Authority (FTA). VAT registration allows companies to charge VAT on taxable supplies and recover VAT incurred on acquisitions, maintaining compliance and improving transparency of finances.

Who Must Register for VAT in the UAE?

Mandatory Registration: Companies with taxable supplies and imports over AED 375,000 per annum need to register for VAT.

Voluntary Registration: Companies with taxable supplies and imports over AED 187,500 per annum can register voluntarily for VAT.

VAT Registration Process

Companies need to follow these steps to effect VAT registration in the UAE:

Online Registration through FTA Portal – Enterprises have to sign up on the Federal Tax Authority (FTA) portal and submit the VAT registration form.

Submit Documents Required – The documents listed below are required:

Copy of trade license

Passport and Emirates ID of the business owners

Bank details of the company

Financial records

Review & Approval by FTA – Upon confirmation, FTA issues a Tax Registration Number (TRN), enabling companies to charge and collect VAT in accordance with law.

VAT Registration in Dubai

Dubai as a major international business destination hosts thousands of business companies belonging to various sectors. Dubai companies have to get registered for VAT for UAE tax compliances to avoid any setbacks to their uninterrupted working.

Prime advantages of VAT registration in Dubai:

Compliance of UAE laws relating to tax

Capacity to collect and reimburse VAT on transactions carried out through businesses

Added trust and integrity to financial activities
Improved, frictionless intra-regional cross-border trade throughout the GCC area

FTA VAT Registration – Compliance & Obligations

After registering with VAT, FTA VAT norms must be obeyed by firms to escape punishment. Major responsibilities are:

Issue VAT-Compliant Invoices – All VAT invoices should mention VAT information and TRN.

VAT Return Filing – Registered firms should file VAT returns quarterly or on a monthly basis, depending upon their FTA filing obligations.

VAT Payment & Record-Keeping – Enterprises should pay due VAT on time and keep the books of account for a period of at least 5 years for audit trials.