Complete List of VAT Penalties and Fines in the UAE
The UAE introduced its Value Added Tax (VAT) system on…
We offer a hassle free VAT registration service in Dubai that will take you through the process step by step in order to avoid fines and ensure that your business runs smoothly. We offer expert VAT consultancy services in the UAE to help businesses register, comply and even manage their VAT filings. Our VAT registration services in Dubai make sure that the process is easy and simple for businesses. We also ensure that your business is in compliance with UAE tax regulations.
Allow us handle your VAT registration in the UAE including Dubai to enable you to concentrate on enhancing your business.
Follow the following steps for VAT registration process online through the EmaraTax platform without any difficulties:
The process of registering for Value Added Tax (VAT) in Dubai, UAE is a process that is regulated by the Federal Tax Authority (FTA). Here are the steps which will make it easier for you to register for VAT:
Document | Description |
Valid Trade License(s) | Official license(s) authorizing your business operations. |
Passport/Emirates ID of Authorized Signatory(s) | Identification documents of individuals authorized to act on behalf of the business. |
Proof of Authorization for Authorized Signatory(s) | Documents such as a Power of Attorney confirming the authority of the signatory(s). |
Contact Information | Up-to-date contact details of the business, including address, phone number, and email. |
Bank Letter Validating Bank Account Details | An official letter from your bank confirming your business's bank account information. |
Registration Basis | Additional Documents | Description |
Taxable Supplies (Applicable for all legal types except Federal and Emirate Government) | - Audit report or financial statement (audited or non-audited) - Self-prepared calculation sheet detailing taxable/zero-rated supplies - Revenue forecast with evidence (e.g., Local Purchase Order or Contract) - Monthly turnover declaration signed and stamped by the authorized signatory - Supporting financial documents (e.g., invoices, LPOs, contracts, title deeds, tenancy contracts) | Documents demonstrating the value and nature of taxable supplies made by the business. |
Taxable Expenses (Applicable for all legal types except Federal and Emirate Government) | - Audit report or financial statement (audited or non-audited) - Expense budget report | Documents detailing the business's taxable expenses. |
Document | Description |
Articles of Association/Partnership Agreement | Foundational documents outlining the business structure and agreements. |
Certificate of Incorporation | Official certificate confirming the formation of the company. |
Ownership Information | Documents detailing the ownership structure of the business. |
Customs Details | Information related to customs registration, if the business is involved in import/export activities. |
Power of Attorney Documents | Legal documents granting authority to individuals to act on behalf of the business. |
Club, Charity, or Association Registration Documents | Registration certificates and supporting evidence for entities registered as clubs, charities, or associations. |
Copy of the Decree | Applicable for Federal UAE Government Entities or Emirate UAE Government Entities. |
Emirates ID and Passport Copies | Identification documents of the manager, owner, and senior management. |
Land/Property Title Deed | Proof of ownership for any land or property held by the business. |
There are several reasons why VAT registration in the UAE is essential for businesses:
It is mandatory for businesses to register for VAT in the following cases:
A business may apply to register if it does not meet the mandatory registration criteria and:
For an accurate fee structure, please contact our VAT Consultant team today.
Our VAT consultancy services in Dubai make sure that your business is VAT compliant in Dubai. We provide:
VAT registration is compulsory for those enterprises which have turnover more than AED 375,000. It helps in adhering to the UAE tax laws and regulations and also enables businesses to collect VAT on taxable sales.
UAE-resident businesses who make taxable supplies in the UAE must mandatorily register for VAT provided the value of their taxable supplies and imports exceeds the mandatory registration threshold of AED 375,000. Non-UAE-resident businesses who make taxable supplies in the UAE must also mandatorily register for VAT, regardless of the value of its taxable supplies and imports, where there is no other person obligated to pay the due tax on these supplies in the UAE.
UAE-resident businesses who make taxable supplies in the UAE may voluntarily register for VAT if the value of their taxable supplies and imports, or taxable expenses exceeds the voluntary registration threshold of AED 187,500.
You can register for VAT online through the FTA e-Services portal by first creating an account, then preparing the application and attaching the necessary documents.
Non-compliance with VAT registration laws can lead to fines of AED 10,000.
Value Added Tax or VAT is a tax on the consumption or use of goods and services. It was introduced in the UAE on 1st January 2018. The VAT rate is 5 per cent. VAT will provide the UAE with a new source of revenue which will continue to be utilized to provide quality public services. It will also allow the government to move towards its objective of lesser dependence on oil and other hydrocarbons as a source of revenue.
Businesses which generate revenue between AED 187,500 and AED 375,000 are allowed to opt for voluntary VAT registration.
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