VAT Registration Charges in Dubai

Guide to UAE VAT registration: costs and criteria

The tax policy in the UAE is generally regarded for being highly favorable. Currently, the nation continues to impose no tax on either business or individual income. Although the tax environment may seem appealing, it is untrue to assert that the UAE has no taxes. One tax is in existence that practically everyone must pay, including many businesses and individuals: VAT.

The new tax, which went into effect on January 1st at a flat rate of 5%, was put in place to give the government a stream of money aside from oil earnings with which to fund a variety of top-notch public services.

You must first register if your company is obligated to pay VAT. Please adhere to our basic VAT registration advice to assist you in achieving this.

VAT registration UAE

Not all firms in the UAE are required to register for VAT. If your taxable imports and supplies in the UAE total more than AED 375,000, you must register for VAT.

If your taxable imports and supply total more than AED 187,500, you may also register to pay VAT voluntarily.

The Federal Tax Authority (FTA) of the United Arab Emirates (UAE) defines taxable supply as:

“A supply of products or services produced by a company in the UAE that is subject to a 5% or 0% tax rate. When determining whether a supply of certain products or services would be taxed if manufactured domestically in the UAE, imports are also taken into account.

Simply put, VAT is money that a company collects from its clients and gives to the government. A VAT-registered firm can demand a refund from the government for any VAT it has paid to its suppliers.

In the UAE, how to register for VAT

The UAE’s VAT registration procedure, like much government administration in this region of the world, is pretty simple as long as you get professional guidance beforehand.

Making an account on the Federal Trade Authority (FTA) website is the first step in the UAE’s VAT registration procedure.
This procedure is similarly simple. Go to and click “Sign Up” first.

Next, provide the necessary information, such your email address, password, security question, etc. After completing this step, you will get a confirmation email at the address you provided with instructions on how to proceed.

You may connect into your e-service account and start the VAT registration procedure after having your email validated.

What are the requirements for VAT Registration in UAE

After logging in to the FTA e-services site, click “Register for VAT” to begin going. A number of VAT registration UAE papers are need to finish your application.

  1. Put your personal details.

  2. Fill your Contact Information.

  3. Banking Information Required.

  4. Your Business Information

Once the application is finished, click Submit for Approval.

Your Tax Registration Number (TRN) will be sent to you after your VAT registration has been approved. When filing your VAT return, you must do this.

For using this service, there are no expenses associated with VAT registration in the UAE.

Deregistering for VAT

It is also feasible to deregister for VAT if needed. However, any firm that has voluntarily registered for VAT must remain registered for at least 12 months before attempting to deregister.

You should cancel your VAT registration if: you are following under

  1. Your firm no longer manufactures taxable supplies.
  2. Your taxable supplies have a value that is less than the voluntary threshold.

Within the upcoming 30 days, you don’t see your taxable supply reaching the voluntary level.

In the UAE, how to pay VAT

When the time comes, you may also file a VAT return using the FTA eServices website.
To file a return:

  1. After logging in, select the VAT tab.
  2. Fill out the form completely, including the VAT calculation and information about your income.
  3. Then file your return and then make the VAT Payment 

Executive rules for UAE VAT

The Ministry of Finance issued the UAE VAT regulations to make sure firms in the UAE are aware of all the criteria for VAT registration.

  • Three hundred seventy-five thousand dirhams, or AED 375,000, will serve as the mandatory registration threshold.

  • Within thirty days of being required to register for taxes under the decree-law, the individual who must register must submit a Tax Registration application to the appropriate body.

  • If a person fails to file his tax registration application despite being required to do so, the authority must register that person with effect from the date the person first became liable to be registered for tax and impose the necessary penalties in accordance with Federal Law No. (7) of 2017.

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  • Whether or not the person applies for tax registration, the authority shall register the person with effect from the first day of the month following the month in which the person is required to register if the person’s supplies exceed the Mandatory Registration Threshold as defined by the decree-law or from such earlier date as the authority and the person may agree.

  • Whether or not the person notifies the authority that they are liable to register for tax, when a person anticipates that their supplies will exceed the Mandatory Registration Threshold in accordance with the decree-law within the next (30) days, the authority shall register them as of the date on which there are reasonable grounds to believe they will be required to register as specified in that clause, or as of such earlier date as the authority and the person have previously agreed upon.

  • If a person who is not a resident of the state is required to register pursuant to the decree-law, the authority shall register him with effect from the date on which he began making supplies in the state, regardless of whether he notifies them of the obligation to register for tax purposes, or from such earlier date as the authority and the person may have agreed.

  • According to the guidelines in this article, a taxable person who registered for tax later than required is responsible for accounting for and paying the authority the necessary tax on all taxable supply and imports made by him prior to registering.

File your VAT Return with IMAS Business Setup Company

Most entrepreneurs and businessmen just love the tax environment of the UAE. As the tax landscape of this country is very attractive, many ambitious people are now planning to settle here. However, it is wrong to say that the UAE is tax-free because there is one common tax that is applicable in many businesses. VAT was rolled out in 2018, and it was introduced so that the government can get an additional source of income apart from the oil revenues. The government spends this money in providing high standard public services to the citizens. VAT is considered an effective way to improve the GDP of the nation and enhance the tax revenues. A business has to collect VAT from its customers and submit it to the government.

VAT Registration Charges in Dubai -UAE

The experts of IMAS are present to guide you in the process of VAT registration. In the UAE, the VAT registration is straightforward, but expert advice can save your time as well as effort. Several documents have to be submitted with the relevant authorities. Our expert team will guide you in complex procedures so that the formalities can be completed very easily. Your business must register for VAT if its taxable supplies and export exceed AED 375,000. If you want further guidance about VAT registration charges in Dubai, the experts of IMAS can help you. We always share the right set of knowledge with our clients so that the process of business set up and registration is not a challenge for them. Our experts have knowledge about the process of registration. Contact us today to collect further details about VAT registration in Dubai.

We have a very passionate and committed team that helps clients in the process of VAT registration. Our team has always helped aspiring entrepreneurs and businessmen. From helping with the company set up process to VAT registration, we are always ready to help you on each step. Our advice will always shut off your specific needs.

Why is hiring the expert team of IMAS a good idea?

  • Superior expertise
  • Sufficient experience
  • Reduced risk
  • The registration procedures can be carried out very quickly

If the company misses the due date of VAT registration, it could lead to a heavy fine. So, take help from the professional team of IMAS and avoid risks. Feel free to contact the expert team of IMAS if you want further details about VAT registration charges in Dubai.

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