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 incurring 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?
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
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
Free Zone and 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 business nature and organization type.
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
Owner and Partner Identification Documents:
- Passport copies of owners, partners, and shareholders
- Emirates ID copies of all authorized signatories
- Copies of residence visa (if any)
Financial and 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
Contact and 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 for VAT Registration in UAE
Step 1: FTA Account Registration
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 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.
Also Read: Complete Guide to VAT Registration in UAE
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), they 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 |
Consult VAT Consultants in the UAE
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 VAT Consultants in UAE to seamlessly meet VAT requirements and to ensure compliance.
FAQs: Documents Required for VAT Registration in UAE
Q1. What documents are required for UAE VAT registration?
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 right documents equals a smooth VAT registration process with Federal Tax Authority (FTA).
Q2. What is the duration of UAE VAT registration?
The FTA usually processes a VAT registration application within 20 business days. Nevertheless, in the event that:
- Missing or inaccurate documents
- Financial details are not in conformity with FTA records
- The activities of business need to be further verified
- Applications may get delayed, companies should make sure all the documents required are accurate and up to date.
Q3. What happens if a company fails to register for VAT within the timeframe?
Failure to register for VAT within the specified timeframe incurs a fine of AED 10,000. Apart from that, non-charging and non-payment of VAT by companies may also result in:
- Fines
- Prosecution by the FTA under the law
- Difficulty in conducting business with VAT-registered suppliers
- Companies can avoid the penalty by registering once they cross the AED 375,000 threshold.
Q4. Is VAT registration compulsory for free zone businesses in the UAE?
- Designated Free Zone companies – May be exempted from VAT but are required to register in case of taxable activities.
- Non-Designated Free Zone companies – Need to register for VAT similar to mainland companies.
- Offshore Companies – Need to register only if they have taxable activity within the UAE.
- Businesses may refer to FTA guidelines or a VAT specialist to ascertain their VAT obligations.
Q5. Can a business modify its VAT registration details after approval?
Yes, the VAT registration details of businesses can be modified, including:
- Change in trade license or business structure
- Addition of new business activities
- Registered address or contact details
- Such updates should be lodged through the FTA portal in order to be in compliance.
Also Read: VAT Compliance for Businesses in the UAE
