VAT Registration UAE- How to Apply for VAT in UAE

Apply for VAT

Being suitably registered under the UAE VAT law clearly indicates that a business entity has been acknowledged by the Government as a supplier of services/goods and has authorization for collecting VAT from customers while remitting the same to the Government as well. VAT registered businesses will be able to do the following activities:In this article you will Read about,how to apply for VAT in UAE.

  • Charge value-added tax (VAT) on services/goods supplied.
  • Claim input tax credit for VAT that has been paid on purchases and which will be subtracted from liabilities on sales.
  • Paying VAT to the UAE Government.
  • Filing VAT returns on a periodic basis.

All businesses which are registered, have to sync their reporting framework with compliance needs including updating accurate books of accounts, invoices, credit notes, records, and debit notes for all inward/outward suppliers. Businesses in the UAE are categorized under the categories of mandatory/voluntary VAT registration and exemption from VAT registration. Whether they pay VAT or not depends on whether they cross the pre-determined revenue threshold annually. Businesses, where annual turnover crosses AED 375,000, should apply for VAT registration while businesses can voluntarily apply for the same in case their turnover surpasses AED 187,500.

What else should you keep in mind?

VAT (value-added tax) was officially implemented on the 1st of January, 2018, in the United Arab Emirates (UAE). The FTA (Federal Tax Authority) has already set up its online portal for enabling VAT registration. The deadlines have already been announced by the FTA and registration is expected to be implemented in phases.

The registration process involves the following steps:

  • Creating e-Service Account
  • Logging into e-Service Account
  • Filling up and completing the registration form for VAT. This has sections like about the applicant, banking details, contact details, business relationships, about VAT registration, declaration, and review and submit.

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In the UAE VAT regime, any individual engaged in business is not permitted to possess more than a single TRN (Tax Registration Number) unless otherwise stated in the Executive Regulations. Hence, even if a company is opening up branches in multiple Emirates of the UAE, there will be a single VAT registration needed. With a similar goal, if two/more people are associated/related parties in businesses, they may get permission to apply for VAT group registration as well. For help with VAT registration and filing, you can reach out to GCC Filings. The company will also help you with other vital processes including company incorporation, auditing, and accounting.


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