VAT Registeration

Types of VAT Registration Services

There are two types of VAT registration services, companies will choose one category before applying for VAT registration and it will be based on their annual turnover.

Following are the VAT registration categories:

1. Mandatory VAT Registration – Annual turnover is more than Dh 375K
2. Voluntary VAT Registration – Annual turnover is more than Dh 187,500 but less than Dh 375,000

There are many factors which businesses should consider before applying for VAT registration processes like whether to apply for mandatory VAT registration or voluntary VAT registration, The other aspect is to apply for single VAT registration or a Tax group.

Mandatory VAT Registration

As per Federal Tax Authority (FTA), companies or individuals having an annual turnover of AED 375,000 or more must apply for VAT registration and must get a Tax Registeration Numer (TRN) to run business in UAE. They must implement VAT and must collect VAT on behalf of FTA. This is called Mandatory VAT registration in UAE.

Voluntary VAT Registration

As per Federal Tax Authority (FTA), companies or individuals having an annual turnover of more than AED 187,500 but less than AED 375,000 can voluntarily apply for VAT Registration and they get Tax Registeration Numer (TRN) voluntarily. It is totally up to the company if they want to register or do not want to register. In both cases, there will not be an issue. 

VAT Registration for New Company

VAT registration for a new company is not necessary. Newly found companies do not requireVAT registration services in UAE. VAT registration for a new company is only applicable when the company is expecting a turnover of AED 187,500. Below this turnover, they do not have to register as FTA will reject their VAT registration application and will not issue the Tax Registration Number (TRN).

VAT Registration as a Tax Group

VAT registration as a tax group depends on the number of companies doing business with multiple trade licenses. For tax group registration, all the businesses must be established in UAE. FTA will issue one TRN for the whole group of companies.

VAT Registeration for International Companies

If you are a non-UAE resident selling goods that are located in the UAE to a UAE customer, then you will be required to register for VAT irrespective of the level of turnover from such sales. 

International companies must register under VAT and get the VAT number before start selling in UAE through Amazon. VAT registration for international companies selling through amazon in UAE is mandatory.

VATRegistration for Amazon Sellers

VAT registration for Amazon sellers in UAEis mandatory by the Federal Tax Authority (FTA).Amazon sellersmust register for VAT before start making sales in UAE. More and more businesses are moving towards digital platforms and start selling their business on e-commerce platforms. As per FTA laws, businesses in UAE selling through online channels must charge the standard rate of VAT which is 5%.

UAE VAT Registration in Dubai

VAT registration in UAE is an online process. Companies who want to register under VAT will apply for VAT registration on FTA online portal. There are certain documents required for VAT Registration. In the case of VAT non-compliance, FTA will apply VAT fines and penalties.

Late VAT registration Fine - AED 10,000

How can we help?

We can help you in analyzing your turnover that whether you should register for VAT or still have to wait. We will apply for online VAT registration and get the Tax Registration Number (TRN) for your company along with your company’s VAT certificate issued by the FTA.