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VAT Registration UAE
In January 2018, the UAE introduced VAT at a rate of 5% for goods and services. You must understand your VAT obligations from the beginning to ensure that you are getting your compliance right.
You have a responsibility to register for VAT if your taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 per year. If you are approaching or expect to exceed that threshold you must act quickly. You have 30 days and failure to register on time leads to an administrative penalty of AED 10,000.
At Dubai Pivot, we support UK businesses throughout their UAE VAT registration as part of our broader compliance-first approach to business setup. Getting your VAT position correct from the start protects your business and avoids any penalties.
Unsure whether you need to register for VAT in Dubai? Book a free call with our team.
Mandatory vs voluntary registration:
- Mandatory registration – Necessary once taxable supplies and imports exceed AED 375,000 in the past 12 months. Oe, when the business expects exceeding that threshold in the next 30 days.
- Voluntary registration – Available where total taxable supplies, imports or taxable expenses exceed AED 187,500. If your UK business is supplying goods or services into the UAE before your Dubai entity is fully established, we recommend you seek professional advice ahead of trading.
Please Note: VAT registration is separate from your trade license and corporate tax registration.
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Register for VAT in Dubai
Following establishing your business in Dubai, you will then register for VAT with the Federal Tax Authority. This can be done entirely online through the FTA’s EmaraTax portal. The process is straightforward providing your documents are in order. Errors or missing information can delay approval or lead to penalties.
What you need to register for VAT in Dubai:
- Valid trade license
- Passport copies and Emirates ID for all directors and shareholders
- Memorandum of Association or incorporation documents
- UAE bank account details
- Description of business activities and expected turnover
- Proof of UAE address
Following registration, you must issue VAT-compliant invoices for every taxable supply, file VAT returns and make payments on time. VAT returns are usually filed quarterly and late submissions or payments can result in fines and interest charges. Returns and payments are due 28 days after the end of each tax period.
Ready to register for VAT in Dubai? Get in touch with our team and we will manage the process on your behalf.
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If your taxable supplies and imports exceed AED 365,000 per year, you must complete VAT registration. If you are between AED 187,500 and AED 375,000, you should consider voluntary registration, especially if you are looking to reclaim VAT on setup costs.
There is no fee to register with the Federal Tax Authority. However, you should budget for ongoing compliance costs, bookkeeping, VAT-compliant invoicing and quarterly return filing.
The mandatory registration threshold is AED 375,000 in taxable supplies and imports per year. Voluntary registration is available from AED 187,5000.
The FTA usually processes VAT registration applications within 20 business days, as long as all documents are accurate and complete. Missing or incorrect information is the most common cause of delays.