VAT Registration & Filing – UAE Compliance
1. Legal Requirement & Scope
Under Federal Decree-Law No. 8 of 2017 on Value Added Tax and its Executive Regulations, VAT is a mandatory indirect tax in the UAE applied to most goods and services at a standard rate of 5%.
Businesses must register for VAT if:
Their taxable supplies and imports exceed AED 375,000 in the last 12 months or are expected to exceed it in the next 30 days (mandatory registration threshold).
Voluntary registration is allowed if supplies or expenses exceed AED 187,500 in the same period.
2. VAT Registration Process
Submit an application via the Federal Tax Authority (FTA) e-Services portal.
Provide trade license, owner/partner Emirates ID & passport, contact details, bank account information, and financial turnover proof.
On approval, receive a Tax Registration Number (TRN), which must be included on all tax invoices.
3. VAT Filing Obligations
VAT returns must be filed quarterly or monthly as assigned by the FTA.
Returns include total sales, purchases, VAT collected (output tax), VAT paid (input tax), and the net VAT payable or refundable.
VAT returns must be submitted within 28 days from the end of the tax period through the FTA portal.
Payments must be made in full by the due date to avoid penalties.
4. Record-Keeping for VAT
As per FTA law, VAT-registered businesses must keep:
Tax invoices and credit/debit notes.
Records of goods and services supplied and received.
Import/export documentation.
VAT account summaries and reconciliations.
Retention period: 5 years (up to 15 years for real estate transactions).
5. Penalties for Non-Compliance
Failure to register for VAT: AED 10,000.
Late VAT return submission: AED 1,000 (first offense), AED 2,000 (repeat within 24 months).
Late VAT payment: 2% immediately, 4% after one month, plus 1% daily thereafter (up to 300%).
Failure to issue a tax invoice or credit note: AED 2,500 per document.
Failure to display VAT-inclusive prices: AED 5,000.
Incorrect VAT return: AED 1,000 (first offense), AED 2,000 (repeat).
Failure to keep VAT records: AED 10,000 (first), AED 20,000 (repeat).
6. Service Value and Client Impact
By handling your VAT registration and filing:
Compliance Assurance – Fully aligned with FTA VAT law and deadlines.
Penalty Avoidance – Ensures accurate, on-time submissions.
Financial Accuracy – Proper input/output VAT tracking.
Business Credibility – TRN registration builds trust with customers and suppliers.
Peace of Mind – Our experts manage the process end-to-end.