News & Articles

How to Register a Company for VAT in the UAE

how to register a company for vat in uae

In the vibrant business ecosystem of the United Arab Emirates (UAE), understanding the realm of taxation plays a vital role in operational success. As of January 1, 2018, with the implementation of Value Added Tax (VAT), businesses across the country have needed to adapt and integrate this system into their financial frameworks. This article breaks down the steps of “how to register a company for VAT in UAE”, providing a roadmap to effective compliance with this fiscal mandate.

How to Register a Company for VAT in the UAE

To begin with, it’s essential to establish whether your business is indeed required to register for VAT. In the UAE, this is dependent on the value of taxable supplies your business has produced over the last year. Mandatory registration is applicable for businesses exceeding AED 375,000 in taxable supplies within this period. On the other hand, businesses falling short of this threshold but surpassing AED 187,500 can opt for voluntary registration.

Having identified the need for VAT registration, the next stride involves preparing the necessary documentation. This assortment of documents, integral to the registration process, consists of your trade license, passport or Emirates ID (for UAE residents) of the business owner and managers, details specifying your business activities, bank account information, a statement of income for the last 12 months, and relevant business contact details.

The registration process unfolds on the digital platform provided by the Federal Tax Authority (FTA). To navigate this process, you first visit the FTA online portal and create a new account. Following this, you initiate a new VAT registration application, carefully filling in the requested information and attaching the necessary documents. Post-submission, the FTA takes over, reviewing your application and, upon approval, issuing a Tax Registration Number (TRN).

With the acquisition of the TRN, your journey towards VAT compliance doesn’t end, but rather enters a new phase. Now, it becomes imperative to fully grasp the implications of VAT on your business operations. This understanding should reflect in your business’s pricing, invoicing, and overall financial systems. Moreover, maintaining meticulous records of business income, costs, and the associated VAT charges is an obligatory part of this phase.



How Can Choose UAE Help

Embarking on the path of VAT registration in the UAE may seem overwhelming initially. However, when broken down into these distinct steps, it becomes a more navigable terrain. It is an exercise of understanding and preparing for the process that lies ahead. And at Choose UAE, we’re here to simplify this journey for you. Our team is committed to helping businesses gain clarity and conform to the VAT regulations in the UAE. For expert guidance on VAT registration and more, don’t hesitate to connect with us.

What Makes Us Stand Out?

Start Your Business Journey with Us

We are Rated 5

on Google

Knowledge Center

Can't find the answer you're looking for? Don't worry we're here to help!