VAT registration is a legal requirement for many businesses operating in the UAE. Companies that exceed the revenue threshold must register for VAT with the Federal Tax Authority.
What is VAT?
Value Added Tax (VAT) is a consumption tax applied to goods and services at a standard rate of 5% in the UAE.
VAT Registration Threshold
Businesses must register for VAT if their taxable supplies exceed:
AED 375,000 annually (mandatory registration)
Businesses earning above AED 187,500 can apply for voluntary registration.
Documents Required for VAT Registration
Businesses typically need to submit:
- Trade License copy
- Passport/Emirates ID of owners
- Company bank details
- Business activity description
- Financial records and turnover details
VAT Registration Process
- Create an account on the FTA portal
- Submit VAT registration application
- Upload required documents
- Wait for approval from the Federal Tax Authority
Once approved, businesses receive a Tax Registration Number (TRN).
