UAE VAT Registration Services

For businesses operating in the United Arab Emirates, navigating VAT (Value Added Tax) is a very important requirement where even the smallest of registration errors can result in expensive fines and obstacles. Xpert Tax simplifies the entire thing with top-notch UAE VAT Registration services, ensuring 100% compliance with the FTA (Federal Tax Authority). Our team of experienced specialists handle the entire procedure, right from evaluating eligibility to securing your TRN (Tax Registration Number) – so you can focus on what is important for your business’ growth!

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Understanding UAE VAT Registration

What is VAT Registration in the UAE?

VAT or Value Added Tax is a form of indirect tax levied on the supply of the majority of goods and services in the United Arab Emirates. Introduced on the 1st of January, 2018, VAT is imposed at a standardized rate of 5%. Deemed a general consumption tax, it is collected by business entities on behalf of the UAE government at every supply chain stage.

The end consumer is the entity who eventually bears the tax’s cost. VAT implementation was a tactical move made by the UAE government to ensure diversification of its revenue streams and construct a sustainable economic future.
VAT Registration refers to the formal process following which a business entity is legally recognized by the FTA as a taxable goods and services supplier. It is a crucial first step on the path to compliance with the UAE’s tax regulations. Once your business is successfully registered for VAT in the UAE, it is issued a unique TRN or Tax Registration Number.

The TRN is a must-have for every VAT-associated activity and it must be present on every tax invoice, credit note, as well as all other documents that are submitted to the Federal Tax Authority. VAT Registration leads to the integration of your business with the tax ecosystem of the UAE, permitting you to take VAT from customers and remit it to the UAE government.

Registering for UAE VAT

Who Should Register for UAE VAT?

Understanding whether your UAE business needs to get registered for VAT is very important. The FTA has established clear-cut thresholds for both necessary as well as voluntary registration to aid in guiding businesses.

Mandatory VAT Registration

Your business entity in the UAE must register for Value Added Tax if it meets any one of the given criteria:

The overall value of your entire taxable supply & imports go beyond AED 375,000* over the previous period of 12 months.
You expect that overall value of you entire taxable supply & imports will exceed the AED 375,000* threshold in the upcoming 30 days.

This applies to the majority of trading companies, service providers, e-commerce entities, and other other commercial bodies that are operating in the United Arab Emirates.

Voluntary VAT Registration

Your UAE business possesses the option to voluntarily register for VAT given that it meets either of the provided conditions:

The overall value of your taxable supplies, imports, or expenses go beyond the AED 187,500* threshold.
You expect that the overall value of your taxable supplies, imports, or expenses exceed the AED 187,500* threshold in the upcoming 30 days.

Voluntarily registering for VAT in UAE is a tactical choice for SMEs and startups, since doing so permits them to lawfully claim their business expenses’ input VAT. Moreover, it also elevates their corporate credibility.

UAE VAT Registration for New Companies

For companies or businesses that are newly established in the UAE, registering for VAT should be deemed a vital consideration from the first day. Xpert Tax aids you in evaluating your projected revenue along with your business model to determine whether you fall under the mandatory or voluntary threshold, thereby ensuring you begin your business operations lawfully.

UAE VAT Registration for Foreign Companies

Foreign companies who make taxable supplies in the United Arab Emirates might need to register for VAT irrespective of what their turnover is. There exists no minimum registration thresholds for businesses that are non-resident, making professional guidance a must-have to ensure complete compliance.

VAT-Exempt Supplies vs. Zero-Rated Supplies

Understanding the Difference between VAT-Exempt and Zero-Rated Supplies

It is very important to understand the differences between supplies that are exempt from UAE VAT and supplies that are zero-rated, since this directly has an im[act on your VAT registration obligations.

Zero-Rated Supplies (0% Tax)

UAE Businesses that deal in Zero-Rated supplies still charge VAT in UAE, but the rate is 0%. A crucial advantage is that the input VAT paid on the business expenses can be reclaimed. Some examples include:

Goods and services exported outside the GCC region.
Passengers and goods’ international transportation.
Some services associated with the education and healthcare sectors.
Residential buildings’ first sale.

Exempt Supplies

The following goods as well as services are not subjected to UAE VAT at all. Business entities that exclusively deal in exempt supplies cannot register for UAE VAT and as a result, cannot reclaim the input VAT. Here are the examples:

Specific financial services.
Residential properties’ subsequent sales.
Bare land.
Local passenger transport.

Xpert Tax' Process of UAE VAT Registration

Our VAT Registration Process

Xpert Tax redefines the VAT Registration in UAE and turns it into a smooth, transparent process. We manage each step for you to ensure precision and speed.

Step 1: Creating an Account on FTA’s EmaraTax Platform

We begin by signing up and establishing your business’ official account on the EmaraTax portal, the main gateway for every UAE tax procedure.

Step 2: Compiling the Required Documents

Our seasoned experts guide in the collection and preparation of all the required documents, ensuring nothing gets missed and you experience no application delays.

Step 3: Submission of Application & Entering Details

We fill up the online registration form meticulously, ensuring every business detail, fiscal information, and declaration is filled up accurately.

Step 4: FTA Review, Correspondence & Approval

Our team acts as your official representative, handling all forms of communications with the Federal Tax Authority. We quickly address any question or request for extra information from the authorities.

Step 5: Getting Your Business’ UAE TRN (Tax Registration Number)

After successful review, we make sure you get your TRN certificate from the Federal Tax Authority, officially finishing up the UAE VAT Registration process.

Which Documents Are Needed for UAE VAT Registration?

Documents Required for UAE VAT Registration

To ensure a seamless application, the Federal Tax Authority needs a complete set of documents. We help you in the organization and submission of the following documents:

Your Company’s Trade License

Emirates ID & Passports of Business Owner/Partners

MoA (Memorandum of Association) or other relevant incorporation documents.

Account details of the official company bank account, such as the bank's name, IBAN, etc.

Business address’ proof, such as Ejari, title deed, utility bill, etc.

Income statement/turnover declaration for the past 12 months

Customs registration documents (if applicable, for import or export businesses)

How We Can Help You

Xpert Tax’ Comprehensive UAE VAT Registration Services

We offer a complete suite of top-tier services specifically designed to manage every aspect of your UAE VAT Registration, all the way from start to end. We offer:

Eligibility Assessment for UAE VAT Registration: Our team analyzes your business’ official turnover as well as expenses to determine whether you need to go for UAE VAT Registration either under the mandatory or voluntary scheme.

Meticulous Application Preparation & Submission: We ensure your VAT Registration application is free of errors and is submitted properly the first time.

Direct Contact & Follow-Up with FTA: Our experts manage each correspondence step with the UAE tax authorities so you don’t have to.

VAT Registration for Tax Groups: Xpert Tax provides expert guidance and assistance for parent companies that are on the lookout register multiple ventures as a single tax group.

Post-Registration Assistance & Compliance: Our service does not end once the registration is complete; we aid you regarding the next steps for complete VAT compliance.

VAT Deregistration Assistance: If and when your business ceases operations or goes below the set threshold, we also have the expertise to handle the VAT Deregistration process.

What to Do After UAE VAT Registration is Complete?

Getting hold of your business’ TRN is merely the beginning of your compliance journey. Post registration, your business entity in the UAE must:

Clearly highlight your TRN on every tax invoice, credit note, etc.
Charge the right VAT rate, i.e., either 5% or 0%, on every taxable supply.
Maintain precise fiscal records, books of accounts, as well as tax invoices for a minimum of 5 years.
Accurately file our VAT returns with the Federal Tax Authority periodically (generally quarterly) and pay off any VAT due.

Ready to Become UAE VAT Compliant? Get in Touch with Xpert Tax Today!

Require help understanding your UAE VAT obligations? Speak to an Xpert Tax advisor today. Connect with us for a zero-cost, no-obligation consultation and allow our experts to manage all the complexities for you!

Questions About UAE VAT Registration

Frequently Asked Questions (FAQs)

Do I need to register for UAE VAT?

You are obligated to register for UAE VAT if your taxable imports and supplies exceed the AED 375,000* mark in a period of 12 months. You can choose to voluntarily register if they exceed the AED 187,500* mark. Xpert Tax can offer a quick and accurate evaluation for you.

How long does the UAE VAT Registration procedure take?

The timeline of UAE VAT Registration can vary. Post the submission of application, the FTA might take around 2-4 weeks to assess and approve it.

Can a business entity be exempt from UAE VAT Registration even if its turnover goes beyond the threshold?

If a business entity in the UAE deals exclusively in zero-rated supplies, it may submit an application for exemption from VAT registration.