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VAT Registration in UAE: When, Why and How?


Value Added Tax has been implemented in the UAE last 1st January 2018. With this, businesses need to consider whether they are required to register for VAT purposes as non-compliance will result in heavy fines and penalties. It’s very important for a business to know when, why, and how to register for VAT in the UAE in order to avoid such penalties and to ensure compliance with the respective laws and regulations.

When to register for VAT in the UAE?

As per Article 13 of Federal Decree-Law No. (8) of 2017 on Value Added Tax, every person who has a Place of Residence in the UAE is required to register for VAT if:

It is very important to know when exactly you must register for VAT since the failure of the Taxable Person to submit a registration application within the timeframe specified in the Tax Law has an administrative penalty amounting to AED 20,000. Instead of appropriating this amount to operating or investing activities of the company, imagine the opportunities one company has lost just because of late registration for VAT.

A company can also opt to register for VAT even though the mandatory threshold criteria have not been met. A business may apply to register if

Why register for VAT in the UAE?

It’s not just about avoiding the administrative penalties. VAT registration also means:

How to register for VAT in the UAE? You can register online by creating an e-Services account in the FTA Portal. You have to prepare various documentations to prove that you reached the threshold and you have submitted the application registration on time. The best thing to do is to contact an FTA approved tax agency to assist you in applying for registration.

For More Clarification, please visit the website

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