VAT (Value Added Tax) registration is mandatory for business entities in the UAE that exceed the compulsory or voluntary registration threshold. The FTA requires certain documents from businesses during the registration process to ensure adherence to VAT law. Preparing the necessary VAT registration documents properly is essential for obtaining a Tax Registration Number (TRN). It helps to avert delays and incur potential fines. This article explains the required documents for UAE VAT registration, along with the eligibility criteria and other compliance requirements for businesses.
Who Must Register for VAT in UAE?
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Compulsory VAT Registration
Companies must register for VAT if their taxable turnover over a year exceeds AED 375,000. They are:
- Companies trading and selling goods and services in UAE
- Exporters and importers of taxable goods
- E-commerce companies and online businesses
- Freelancers and consultants operating above the VAT limit
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Optional VAT Registration
Optional VAT registration is appropriate for companies with taxable turnover ranging from AED 187,500 to AED 375,000.
- Plan to expand operations and anticipate meeting the threshold in short term
- Required to recover VAT on company purchases
- Need B2B activities, where providers desire VAT-registered trading entities
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Free Zone & Offshore Firms VAT Registration
- Approved Free Zones – Particular exemptions of VAT will apply to some businesses
- Non-Approved Free Zones – They need to register just like mainland businesses
- Offshore Companies – VAT registration only if they are carrying on taxable business in the UAE
Companies are required to determine their VAT registration status considering their turnover and taxable activity on an annual basis.
Documents Required for VAT Registration in UAE
Businesses need to upload certain documents on the FTA e-Services portal for VAT registration. Documents vary depending on the business nature and organization type.
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Documents for Business Identification
Trade License Copy – It is proof that the business has been registered in UAE
Certificate of Incorporation (in case of offshore and free zone business)
Articles of Association (AOA) or Memorandum of Association (MOA) – It is a document of ownership and structuring of the business
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Owner & Partner Identification Documents
Passport copies of owners, partners, and shareholders
Emirates ID copies of all authorized signatories
Copies of residence visa (if any)
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Financial & Tax Documents
Financial Records or Statements of Turnover – Accounting for taxable turnover in excess of VAT thresholds
Bank Account Details – VAT IBAN of the company
Customs Registration Number (if applicable) – For firms dealing with import/export
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Contact & Business Information
Document proving business address (Ejari or tenancy agreement)
Business contact details (telephone number, e-mail address, and web URL)
Proper documentation is essential to avoid rejection of FTA and registration without any issues.
Step-by-Step VAT Registration in UAE
Step 1: FTA Account Registration
Visit FTA e-Services Portal – https://eservices.tax.gov.ae
Register and verify your email address
Login to FTA dashboard
Step 2: Fill VAT Registration Form
Enter business details, trade license number, and turnover
Select mandatory or voluntary registration
Upload VAT registration documents as per the requirement
Step 3: Submission of Application & Waiting for FTA Approval
The FTA takes 20 business days to process the application
If they are accredited, they are given a Tax Registration Number (TRN)
Businesses must start charging VAT on taxable supplies when they register
VAT-registered businesses must comply with UAE tax laws, including issuing VAT invoices, filing tax returns, and maintaining financial records.
Common Delay Reasons for VAT Registration
Inadequate documents – Proper uploading of all the required documents
Inadequate fiscal data – The revenue accounts must satisfy VAT qualification requirements
Mismatch in trade license information – The information should match FTA records
Inadequate bank account information – Required for VAT refund and payment
To avoid delays, companies must check the documents before uploading.
Post-Registration Compliance for VAT Registered Companies
The instant a business is allocated a Tax Registration Number (TRN), it must fulfil FTA VAT obligations, including:
- Issuance of VAT-Friendly Bills – Must contain TRN, breakdown of VAT, and invoice number
- VAT Returns – Monthly or quarter return on the FTA portal
- Keeping VAT Books – Companies must keep VAT books for five years
- Payment of VAT Dues on Time – to be paid on or prior to the 28th day of the subsequent month
Default will incur penalties, fines, and legal issues.
VAT Registration Penalties in UAE
Businesses are required to register for VAT within the specified time limit. Businesses that fail to do so within the specified time period might face penalties, including:
| Non-Compliance Issue | Penalty (AED) |
| Late VAT registration | 10,000 |
| Late VAT return submission | 1,000 (first offense), 2,000 (second offense) |
| Inaccurate VAT invoice | 5,000 per invoice |
| Not maintaining VAT records | 10,000 – 50,000 |
Conclusion
VAT registration is a mandatory requirement for businesses with an annual turnover over AED 375,000. Providing proper VAT registration documents on time ensures smooth application and UAE tax compliance. Businesses are advised to seek the expert services of premier Tax Consultants in UAE to seamlessly meet VAT requirements and ensure compliance. Contact us today, and we shall be glad to assist you.
FAQ
Q – What documents are required for UAE VAT registration?
A – Below are the documents that have to be furnished by companies for VAT registration:
- Copy of Trade License
- Passport & Emirates ID copies of partners and owners
- Financial statements or proof of income
- Bank details
- Import/export trade (Customs Registration Number)
- Business address proof (Ejari or tenancy agreement)
- Providing the right documents equals a smooth VAT registration process with the Federal Tax Authority (FTA).
