Introduction to VAT in the UAE
Value Added Tax (VAT) is a tax on consumption that was implemented in the UAE on January 1, 2018. VAT is governed by the Federal Tax Authority (FTA) and is levied on the majority of goods and services at a standard rate of 5%. Companies that meet the prescribed limits are obligated to register for VAT in the UAE. Registration for VAT ensures compliance and enhances business reputation. Being a startup, SME or large corporation, it is important to understand the process of VAT registration Dubai, UAE to remain compliant and not incur penalties.
What is VAT Registration?
VAT registration is the procedure whereby a business is officially recognized by the Federal Tax Authority (FTA) as a taxable person. Having registered, the business is issued a Tax Registration Number (TRN) and is liable to:
- Charging VAT on goods and services that are subject to VAT
- VAT returns filing
- VAT payment to the government
- Keeping VAT-compliant records
Who Requires VAT Registration in UAE?
VAT registration Dubai, UAE is Mandatory or voluntary depending on the taxable turnover annually:
✓ Mandatory VAT Registration:
Companies are required to register for VAT if their taxable supplies and imports are more than AED 375,000 a year. Registration must be completed within 30 days of the date the mandatory threshold is reached.
✓ Voluntary VAT Registration:
Businesses with taxable turnover between AED 187,500 and AED 375,000 can choose to register voluntarily. This allows them to reclaim input VAT on their business expenses.
Advantages of VAT Registration in UAE
- Legal Compliance: Avoid penalties and fines from the FTA
- Input VAT Recovery: Reclaim VAT paid on business purchases and expenses
- Enhanced Credibility: Demonstrates professionalism and compliance to clients and partners
- Competitive Advantage: Many businesses prefer to work with VAT-registered suppliers
- Access to Larger Markets: Required for government contracts and tenders
Documents Required for VAT Registration UAE
- Statement of taxable income and adjustments
- Schedules supporting deductions and capital allowances
- Related party disclosures and transfer pricing summaries
- Supporting financial statements and reconciliations
- Initial data collection and scoping
- Adjusting financials for tax purposes
- Preparing schedules and review
- Electronic submission and payment support
Corporate Tax Filing
Overview
Corporate Tax filing requires accurate preparation of taxable income, allowable deductions, and application of exemptions. Unioncore prepares and files corporate tax returns, ensures deadlines are met and advises on documentation to support filings.
What to include in the return
Filing timeline & deadlines
We prepare returns in line with MOF/FTA timelines and coordinate filing dates, payments and reconciliations to avoid penalties.
How we work
Need help with Corporate Tax filing?
We handle end-to-end filing and provide post-filing support.
Get Started WhatsApp NowTimeline for VAT Registration
- Document Preparation: 1-3 days
- Application Submission: 1 day
- FTA Processing: 15-20 business days
- TRN Issuance: 1-2 days after approval
- System Updates: 3-5 days
Total Timeline: Approximately 3-4 weeks from start to finish
Post-Registration VAT Obligations
Once registered, businesses must comply with ongoing VAT obligations:
- Display TRN on all tax invoices and business documents
- Charge VAT at the appropriate rate (5%, 0%, or exempt)
- Issue compliant tax invoices
- File VAT returns quarterly (or monthly for voluntary filers)
- Pay VAT liability to FTA by the due date
- Maintain proper accounting records for 5 years
- Submit to VAT audits when required
- Notify FTA of any business changes
Need Help with VAT Registration?
Our expert team at Unioncore can handle your entire VAT registration process, ensuring accuracy and compliance. We offer:
- Complete document preparation and verification
- FTA portal registration and application submission
- Follow-up with FTA and query resolution
- Post-registration support and guidance
- Ongoing VAT compliance services