VAT registration in the UAE

The UAE government rolled out a 5% value-added tax (VAT) on January 1, 2018, which is collected at the point of sale. Businesses are required to collect and report the tax to the government. The introduction of VAT is an effort to reduce the country’s dependence on oil and hydro carbon and to create a new revenue source for public services and infrastructure development.

Although a majority goods and services are subject to the 5% VAT rate, some are exempt, while others are zero-rated. Suppliers of exempt or zero-rated goods and services must still register this with the Federal Tax Authority (FTA).

How to register for VAT in the UAE

Anyone that is required to register for VAT must submit an application to the Federal Tax Authority (FTA) online via the Emara Tax portal within 30 days of reaching the mandatory threshold.

The service is free of charge and application takes approximately 45 minutes to complete. It is generally processed in 20 days from its receipt in the system. However, in some circumstances, the FTA may request additional information which must then be re-submitted with the allowance of a further 20 business days for approval.

When calculating your business’ taxable turnover figure, you must include the following:

  • Taxable supplies
  • Standard rated supplies
  • Zero-rated supplies
  • Deemed supplies
  • Imported goods and services

To register for VAT, individuals required to do so must submit an application through the Emara Tax portal to the Federal Tax Authority (FTA) within 30 days of reaching the mandatory threshold. This application process is free and takes about 45 minutes to complete.

When calculating the taxable turnover figure for a business, it is important to include:

  • Taxable supplies
  • Imported goods and services
  • Standard rated supplies
  • Zero-rated supplies
  • Deemed supplies

What documents are required to be submitted for UAE VAT registration?

To register for VAT, these are the documents that need to be submitted:

  • Valid trade license
  • Passport/Emirates ID of the authorised signatory/signatories
  • Proof of authorisation for the authorised signatory/signatories
  • Contact information
  • Bank letter validating the bank account details of the applicant

Decisive Zone can assist you with your VAT registration in the UAE. Book an appointment with one of our trusted consultants at Decisive Zone and get expert help on how to get your UAE VAT registration.