VAT registration in the UAE

A company registering under the VAT law is recognized by the government as a supplier of
goods and services and is authorized to collect VAT from customers and remit it to the
government. Businesses that are registered for VAT can do the following:
• Bill for VAT on taxable supplies of goods and services
• Claim Input Tax Credit on purchased goods, which will reduce the VAT liability on
taxable supplies
• Pay VAT to the government
• Periodic filing of VAT return
return
report All businesses are required to maintain accurate and updated records of accounts, tax
invoices, credit notes, debit notes, records of their inward and outward supplies, etc. as part of
their compliance structure.
As such, understanding the fundamentals of VAT will be essential to your VAT preparation,
while obtaining VAT registration will be the first step towards transitioning your businesses to
the VAT era.
Is VAT registration required for whom?
Do all businesses have to register for VAT? VAT registration is only required for businesses that
cross the threshold for aggregating their annual revenues. Depending on the registration
threshold, a business is either mandated to register or has the option to apply for registration or
to seek exemption from VAT registration.
As a result, VAT registration in the UAE can be categorized into the following categories:
• VAT Registration Is Mandatory
• VAT Registration Is Voluntary
• Exclusion From VAT Registration
Click here to learn more about VAT registration in the UAE.
The deadline to register for VAT in the UAE is November 1st, 2017.

In order to prepare for the implementation of VAT on 1st January 2018 in the UAE, the Federal
Tax Authority (FTA) has invited applications for registration with VAT. Businesses can register
online through the FTA's portal. Businesses can be ready to charge VAT from the 1st of January,
2018 by applying for online registration early. In the UAE VAT registration portal, registration
takes place in phases based upon the turnover of the company.
Calculation of VAT Turnover for Registration in UAE
UAE
the UAE An eligible business must have a VAT registration threshold above AED 375,000 and
AED 187,500 to be registered. The important thing for businesses to know is how to calculate
the VAT turnover in the UAE for registration based on the type of services they provide.
Applying for VAT Registration in the UAE
VAT registration is mandatory in the UAE for businesses with a turnover exceeding AED
375,000. The Federal Tax Authority (FTA), in order to simplify registration for businesses, has
opened its online portal for VAT registration. According to FTA, deadlines are already set based
on business turnover, and the registration process will be phased in. In addition to knowing
which businesses are required to register for VAT, it is also vital to understand how to complete
the online registration and what kind of information is required to proceed with the process.
Having a good understanding of the types of information needed and the steps to finish the
online VAT registration process will be helpful before you apply to or begin the process. In this
way, the registration process can be completed easily and avoid unnecessary delays due to the
furnishing of incorrect information that could even result in the application being rejected.