How to Register for VAT in Dubai – A Step-by-Step Guide

“Synopsis”

For businesses operating in Dubai, VAT registration is mandatory if annual revenue meets specific thresholds. The Federal Tax Authority (FTA) oversees VAT registration in the UAE, ensuring compliance with tax laws. This guide outlines the step-by-step VAT registration process, helping businesses navigate documentation, deadlines, and filing procedures efficiently.

Since the implementation of Value Added Tax (VAT) in Dubai, businesses must adhere to proper registration procedures to avoid penalties. VAT applies to most goods and services at a rate of 5%, making it essential for companies to understand their tax obligations.

Step-by-Step VAT Registration Process

Step 1: Determine Eligibility

Businesses must register for VAT in Dubai if:

• Annual revenue exceeds AED 375,000 (mandatory registration).
• Revenue falls between AED 187,500 – AED 375,000 (optional registration).

Step 2: Create an FTA Account

To begin registration, businesses must:

• Visit the Federal Tax Authority (FTA) portal.
• Sign up for an account using business credentials.

Step 3: Gather Required Documents

Ensure you have the following documents:

• Trade license
• Passport copies of business owners
• Emirates ID copies
• Company bank account details
• Financial statements & revenue records

Step 4: Complete the Online VAT Registration Form

• Log in to the FTA portal.
• Fill out the VAT registration application with company details.
• Upload the necessary documents.
• Provide estimated annual revenue and VAT-eligible transactions.

Step 5: Submit the Application & Await Approval

Once submitted, the FTA reviews the application. If approved:

• Businesses receive their VAT Registration Certificate.
• A unique Tax Registration Number (TRN) is issued for invoicing.

Step 6: Start VAT Filing & Compliance

Registered businesses must:

• Charge VAT on taxable goods/services.
• Maintain VAT-compliant invoices.
• File VAT returns quarterly or monthly via the FTA portal.
• Claim input tax credits where applicable.

Conclusion

Registering for VAT in Dubai is a crucial step for businesses to ensure tax compliance. By following this step-by-step VAT registration guide, companies can meet Federal Tax Authority (FTA) requirements efficiently while maintaining smooth financial operations.