Value Added Tax (VAT)
Value Added Tax (VAT) is a consumption tax applied at each stage of a business transaction. Introduced in the UAE on January 1, 2018, at a rate of 5%, VAT is ultimately paid by the end-consumer. Businesses are responsible for collecting this tax on behalf of the government and remitting it to the Federal Tax Authority (FTA).
It is mandatory for businesses to register for VAT if their taxable supplies and imports exceed the required threshold. We provide comprehensive VAT advisory services to help your business meet all registration requirements and ensure full compliance.
Types of VAT Registration
Mandatory Registration: A business is required to register for VAT if its taxable supplies and imports over the previous 12 months have exceeded AED 375,000. This also applies if a business anticipates its total taxable supplies will exceed this threshold in the next 30 days.
Voluntary Registration: A business that does not meet the mandatory registration threshold may choose to register voluntarily. This option is available if the total value of its taxable supplies, imports, or taxable expenses over the previous 12 months has exceeded AED 187,500, or is expected to exceed this amount in the next 30 days.
Documents Required for VAT Registration
Our VAT advisory services streamline the registration process by helping you prepare and submit all the necessary documents to the FTA. Key documents typically include:
- Valid Trade License copy.
- Certificate of Incorporation or Registration Certificate (if applicable).
- Copy of Emirates ID and passport of the owner(s) and manager.
- Memorandum of Association (MOA) for companies.
- Company contact details (full address and P.O. Box).
- Details of the company’s primary bank account, including IBAN.
- A summary of sales and purchases from the previous 12 months.
- Details of expected revenue and expenses for the next 30 days.
- Supporting documents for customs registration (if applicable).