Learn Whether Your Business Needs VAT Registration in the UAE

Vat registration is a process where an individual gets registered with the Federal Tax Authority (FTA) for getting acknowledgement for your business. If you are running a business in any Emirate of UAE, you need to consider the VAT registration when your taxable supplier exceeds a certain amount. When certain conditions fixed by the UAE Government are met, any individual or international businessmen can apply for Excise Tax registration or VAT registration. If you hold a valid FTA-issued, TRN (Tax Registration Number) , you will have the right to collect and remit tax in the UAE.

Here we have explained who should consider VAT registration. Continue reading to learn more!

Mandatory Vat Registration

  • A Non-Resident must complete VAT registration in UAE mandatorily if he supplies commodities in UAE irrespective of the Turnover. In that case, the VAT registration will be mandatory only if there will be no one else holding the responsibility to pay VAT on his behalf against the supplies. This rule is applicable to both natural and judicial persons.

  • Any person, natural or others who have been supplying goods/sales of more than 375,000 AED over the previous 12 months have to mandatorily do his VAT registration in UAE. 

  • When a businessman finds that his estimate will exceed 375,000 AED, on reasonable grounds,, in the next 30 days, he must apply for VAT registration.


Voluntary VAT Registration

  • A person can go for VAT registration voluntarily if the value of his supplies over a period of the previous 12 months exceeds AED 187,500, but less than the mandatory limit of AED 375,000

  • A person can voluntarily apply for VAT registration if the value of the supplies over a period of coming 30 days will exceed AED 187,500, but it will be still less than the mandatory limit of AED 375,000

  • A person can voluntarily opt for VAT registration if the value of his taxable expenses over a period of the previous 12 months exceeds AED 187,500.

  • A person can also voluntarily get VAT registration if the value of his taxable expenses over a period of 30 days exceeds AED 187,500.


If you need assistance to simplify the VAT registration process, you can take help from the accountants from ebs. They can help in every matter related to applying and filing VAT and Excise Tax registration. They will take care of all the documents required for the procedure.


Do you want to take help from the experts from ebs for flawless VAT registration? Schedule a consultation for further guidance.

Comments

  1. Nita19 August 2025 at 03:39

    Helpful article! Understanding whether your business needs VAT registration in the UAE is crucial to avoid legal issues and penalties. Consulting with experienced VAT consultants in Dubai can help assess your turnover, determine thresholds, and ensure timely registration. It’s always better to be proactive than to risk non-compliance.

    ReplyDelete

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