Hassle-Free VAT Registration for UAE Businesses

Register for VAT with confidence—our team handles the full process with the Federal Tax Authority (FTA), ensures all documentation is correct, and makes sure you comply from day one so you avoid delays and penalties.

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UAE has implemented Value Added Tax (VAT) since January 01, 2018. VAT is a type of indirect tax that is applied on consumption of goods or services at the point of sale.

VAT registration in UAE

VAT is charged at each stage of the supply chain. The tax percentage is 5 per cent and like every indirect taxation burden of cost is borne by the end user, but the responsibility of collection and submission of VAT from customers is on the businesses. Businesses collect and account fall the VAT on behalf of government and can subsequently claim the VAT refunds from the government.

Mandatory VAT registration for all Business in UAE

All the businesses in UAE whose annual turnover exceeds minimum threshold of AED 375,000/- must register themselves for VAT under the Federal Tax Authority (FTA). So, it is crucial for businesses to determine their obligation towards VAT registration, it is also important for businesses to understand the level of details required for the registration process.

Voluntary VAT registration

All the businesses in UAE whose turnover exceeds the voluntary registration threshold of AED 187,500 can apply for VAT registration. So, it is important for businesses to develop proper understanding about the type of supplies and services that need to be considered in deriving the annual turnover.

VAT Group Registration

It is permitted for group of persons to apply for VAT group registration. These persons should be related or associated parties in the businesses.

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Required documentation for VAT registration

In UAE there is an online process for VAT registration and fee submission. It takes about 2-3 weeks to get the Tax Registration Number (TRN) from Federal Tax Authority (FTA) after online registration. Following documents are mandatory for VAT registration in UAE.

Copy of valid Trade License.
Copy of License owner’s / owners’ passport.
Copy of License owner’s / owners’ Emirates ID.
Memorandum of Association (MOA) (not required for sole proprietorships).
Complete address of business.
Concerned person’s contact information (mobile number, e-mail).
Bank account details.
Information about any other entities owned by the owner.
Signed and stamped Income statement for the preceding twelve months.
Expected revenue and expense for the next 30 days after VAT implementation.
Other general information about business operations.

Where we come in

We at “Virtual Accountants (VA)” are providing services of VAT registration and VAT Accounting to keep your business running and to avoid any VAT penalties and fines.

Virtual Accountants is equipped with a team of enthusiastic VAT experts who will ensure that your lack of familiarity with VAT rules and regulations, structure and compliance issues and lack of an efficient accounting system does not affect your business. Our exclusive VAT consultancy services involves in providing VAT registration, VAT return filing, understanding your business model and evaluation of VAT’s impact on your business and providing assistance in all VAT related concerns.

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Trusted Expertise in UAE Regulatory Compliance

We’re always on the same page with Government Agencies, working together to get the job done!

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FAQs

Accounting Services in the UAE

What happens if my UAE business crosses the AED 375,000 VAT threshold but I delay registration?

If you miss the deadline, the FTA charges an AED 10,000 penalty plus VAT backdated to the date you should have registered. That means you’ll still owe the VAT, even if you didn’t collect it from customers. Acting fast saves money and avoids compliance risks.

Do Free Zone companies in Designated Zones need VAT registration if they only trade inside the Free Zone?

Yes, even Free Zone companies must register if they meet the AED 375,000 threshold. However, supplies within the same Designated Zone may be treated differently for VAT purposes. Correct classification ensures you don’t pay extra VAT or face penalties.

Can I backdate my VAT registration if I already crossed the threshold?

Yes. The FTA may allow backdating, but you’ll need to pay VAT for the past period and possibly penalties. Submitting accurate turnover evidence and engaging a tax advisor increases your chances of a smoother approval.

What documents are most commonly missing or incorrect in VAT registration applications?

The top issues include expired trade licenses, outdated Emirates IDs, turnover without financial proof, and incorrect IBAN details. These mistakes often cause delays or rejections. A consultant ensures your file is complete before submission.

Is group VAT registration always the best option for multiple UAE entities under the same ownership?

Not always. Group VAT simplifies compliance and removes VAT on inter-company transactions, but all members share joint liability. If one company has issues, the whole group can face penalties. Careful assessment is needed before applying.

How does VAT registration differ for e-commerce businesses in the UAE?

E-commerce sellers must declare sales from platforms like Amazon, Noon, or Shopify. FTA often requests platform contracts and sales reports. Many rejections happen because businesses hide online income—full disclosure avoids penalties.

Can foreign businesses without a UAE office register for VAT?

Yes, but they face stricter requirements. The FTA usually asks for import/export documents, UAE client contracts, and sometimes a local tax representative. This process takes longer but is mandatory for compliance.

What happens after my VAT registration is approved?

You must start issuing tax invoices with your TRN, file VAT returns (quarterly or monthly), and keep proper VAT records for at least 5 years. Many companies also update their accounting system at this stage to stay compliant.

Can I deregister for VAT if my business revenue drops below the threshold?

Yes. If your taxable supplies fall below AED 187,500, you can apply for deregistration. The FTA will review your financials before approval. Deregistration reduces compliance costs, but it must be done properly to avoid penalties.

How can I avoid delays in VAT registration approval with the FTA?

Submit clear documents, correct turnover evidence, and valid IDs. Always match trade license details with bank information. If your application is stuck for over 20 business days, filing a service request or using a tax consultant helps speed things up.

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Our Locations

Office - Dubai

Office 609, 6th Floor, Al Moosa Tower 1, Trade Centre 1, Sheikh Zayed Road, Dubai, UAE

Office - Sharjah

Sharjah Media City (Shams), Al Messaned, Al Bataeh, Sharjah, United Arab Emirates.