VAT Registration in UAE

VAT Registration UAE refers to the set of procedures by which a person can register with the Federal Tax Authority (FTA).

Any person, natural or otherwise, can apply for VAT Registration or Excise Tax Registration in the UAE if they satisfy certain conditions. Only such persons who hold a valid TRN or Tax Registration Number as issued by FTA has the right to collect and remit tax in the UAE.

How to Register for VAT in UAE?

The Federal Tax Authority (FTA) through its continuous planning and commitment has ensured that the process of VAT registration is quite minimal. The entire process of VAT registration is done online.

A person who wishes to avail VAT registration shall create an e-services account in the FTA portal using their e-mail address.

During the course of registration various document shall be submitted for verification of FTA some of which are given below for your reference:

  • Documents Identifying Authorised Signatory: Passport, Emirates ID, Etc
  • Trade License of the Company
  • Certificate of Incorporation, Articles of Association, Power of Attorney, Etc
  • Description of Business Activities
  • Turnover for the last 12 Months in AED
  • Supporting Document for 12-Month Sales
  • Expected Turnover in the next 30 days
  • The estimated value of imports for one year from each GCC countries
  • The estimated value of exports for one year to each GCC countries
  • Whether you expect to deal with GCC suppliers or customers
  • Supporting documents for customs registration in each emirate (if applicable)
  • Details of Bank Account



Applying for VAT Registration is a two-step process. First, you have to create an e-Services account and then you have to complete the VAT registration process.

  • Creation of e-Service Account
  • VAT Registration Process

e-Service Account

Before you proceed with online VAT registration, you have to create an e-Service account with FTA. You need to visit 'https://eservices.tax.gov.ae'. The following are the steps involved in creating an e-Service account.

To apply for VAT registration, you need to login to your e-Service account using your login credentials. 

On logging to your e-Service account, you will be able to see the option 'Register for VAT '.

To start the VAT Registration process, click on 'Register for VAT' available in your dashboard as shown in the above image.

VAT Getting Started Guide

After clicking 'Register for VAT', you will be navigated to 'Getting Started Guide'.

This guide helps you understand certain important aspects of VAT registration process in UAE. It also provides the details on the information required for completing the VAT registration form. After reading the details in different sections of the guide, you need to tick 'Click here to confirm you have read the getting started guide' and click on 'Proceed'.

VAT Registration Form

The VAT registration online form contains 8 sections under which details need to be furnished for completing VAT registration. The progress of VAT registration can be tracked by the applicant by the different colours indicator. The section which is in progress or in which you are updating the details, will be denoted by 'Brown' and the ones which are completed will be denoted by 'Green' with a tick mark.


I

Details of the applicant


  1. Name of the applicant
  2. Identification of the applicant
  3. Details of the Manager of the business (CEO or equivalent).


Contact details

In this section you need to provide business contact details such as address and contact number as shown below:


Banking details

In this section, you need to provide the details of you bank such as IBAN (Account Number), BIC (Bank Identifier Code) name of the bank, bank branch name, account holders name and so on. 


Business relationships

This section is applicable only if you or any of your directors or partners, currently involved in (or in the past 5 years have been involved in) any other business resident in the UAE, either individually or as a director or partner in that business.

You select 'No', if it is not applicable and proceed to next section. If it is applicable, you are required to provide the details of the relationship with other business.

About the VAT registration

In this section, you need to furnish the details of your business activities, turnover, imports and exports and so on. This section is categorized into 6 sub-sections as mentioned below:


Business activities of the applicant:

Here you need to choose from the drop-down list, that best describes your current or intended main business activities as shown below. In the next field "Add any other activities (or proposed activities)', you select the other business activities (other than main activity) or the proposed activities.

Actual or estimated financial transaction values:

Here, you need to mention the details of your turnover as shown below:

  • In "Turnover for 12 Months(AED)", you need to mention the value of turnover which includes taxable supplies, zero-rated supplies, deemed supplies and imported goods and services for 12 months. 
  • Next, you have to upload the document as an evidence to justify the above turnover value. The documents such as Audit report, audited or non-audited financial statement, Self-prepared calculation sheet which may include details to calculate the taxable/zero-rated supplies based on financial records or Revenue forecast are generally accepted as evidence.
  • In 'Expected turnover in the next 30 days (AED)' you need to provide the anticipated turnover for next 30 days. The calculation of turnover is similar to the calculation of 12 months turnover.
  • In 'Do you expect the VAT on your expenses to regularly exceed the VAT in your taxable supplies?' select 'Yes' if your tax paid on purchases is higher than the tax collected on sales. Otherwise, select 'No'. This information helps the government to understand whether or not you will be in a position for VAT payment or VAT refund.
  • Next, Select 'Yes' in 'Do you also expect to make exempt supplies?' if you are making or expected to make exempt supplies.

Imports and Exports:

You need to declare whether you are engaged in imports and exports as shown below:

If ' Yes', you need to mention whether these are imports from or exports to GCC member countries i.e. from imports from or exports to Kingdom of Bahrain, Kingdom of Saudi Arabia, Sultanate of Oman, State of Qatar and the State of Kuwait.

GCC activities

This section is applicable, if you are registered for VAT in any GCC member states and in case of import from or export to GCC members states. You need to provide the details as shown below:

The details to be provided are self-explanatory however the following points are to be noted while furnishing the details:

  • In calculating the estimated value of imports for 12 months, do not include the value of any services unless they are directly related to moving goods (e.g. commission, and freight insurance etc.).
  • If you intend to import from and/or export to more than once GCC Member State, then you must click "Add GCC Activities" button.

Customs registration information:

If you are registered with any of the Customs departments in the UAE, please enter the details as shown below. Otherwise, you can select 'No' and proceed.


Exception from VAT Registration:

Businesses engaged in making only zero-rated supplies are allowed to seek exemption from VAT registration in UAE. If you are making only Zero-rated supplies, you can select 'Yes' under 'Do you wish to apply for an exception from VAT Registration on the above'.

Remember, you will be not eligible for exemption from VAT registration if you make zero-rated supplies along with standard rated supplies. Even if you opt for VAT exemption, you are still required to complete the remaining information on the VAT registration application form. 

Declaration

In this section, you need to provide the details of authorized signatory and communication preference such as Mode of communication and preferred language. Accordingly, this is categorized into 2 sub-sections:

A. Authorized Signatory
B. Communication Preference

  • Authorized Signatory
    Here, you need to capture the details of Authorized Signatory such as Job Title, Name, Passport details, Emirates ID, Contact details etc. as shown below: The above are self-explanatory however you need to consider the following points while furnishing the authorized signatory details.
    • The Authorized Signatory details must be for a person who is authorized to legally bind the entity. In many cases, this is a director of a company. In the case of a natural person, it is the person themselves.
    • In proof of authorization, you may include a Power of Attorney or similar documents in the case of legal persons as evidence of authorization.

  • Communication Preference

    Here, you need to select the preferred mode of communication (email or Phone) and the language (English or Arabic) as shown below: After furnishing the communication details, you need to acknowledge and agree to the declarations available under 'Checklist for completion.Tick the declarations as shown above and click 'Save and review'.

Review & submit

In this section, all the details furnished in previous sections are made available for your review. You need to verify the details and submit for FTA approval.

To complete the registration process, click "Submit for Approval'.