ITC Accounting and Tax Consultancy

VAT Registration in The UAE - Ensuring Compliance with FTA Guidelines

Businesses operating in the United Arab Emirates (UAE) must register for Value Added Tax (VAT) in order to adhere to the rules established by the Federal Tax Authority (FTA). The importance of VAT registration in the UAE is highlighted in this article along with the relevant regulations and the requirements that businesses must meet in order to comply. Our organization helps companies comply with the FTA regulations by providing expert VAT Registration and De-registration services.


For firms in the UAE that reach mandatory or voluntary revenue thresholds, VAT registration is required. The procedure is simple and necessary for companies to stay in compliance with FTA rules and avoid fines. As the region’s leading indirect tax consultants, our VAT Registration Services team provides comprehensive support to businesses seeking VAT registration.


The Federal Law No. (7) of 2017 on Tax Procedures and its Executive Regulations control the VAT registration process in the United Arab Emirates.

Important legal provisions pertaining to VAT registration include:

Mandatory Registration : Companies must register for VAT if their taxable turnover exceeded AED 375,000 in the preceding 12 months or if it is anticipated to surpass in the near future as per the documented evidence.


Voluntary Registration: Companies may choose to register voluntarily if the turnover crosses the threshold limit of AED 187,500.


Suppliers who are not UAE residents must typically register for VAT if they make taxable supplies in the UAE. The non-resident may, however, be excused from registration if another UAE VAT-registered person is in charge of accounting for VAT under the Reverse Charge Mechanism. Non-residents are not subject to the threshold criteria.


Companies must meet the following requirements in order to successfully register for VAT in the UAE:


Businesses must have a current business license that has been issued by the appropriate UAE authorities.


Meeting the Turnover Threshold: Companies must accurately estimate their turnover or expenses to evaluate their eligibility for VAT registration if they surpass the threshold of AED 375,000 for mandatory registration or AED 187,500 for voluntary registration.

Businesses must submit the required paperwork, which includes their trade license, Memorandum of Association (MOA), proof of address, copies of the authorized signatories’ passports, and other pertinent financial records.


Application completion: Companies must completely and precisely fill out the VAT registration application by including all necessary elements, such as company information, contact information, and financial information.

 In order for firms operating in the UAE to abide by FTA requirements, VAT registration is a crucial need. Businesses can guarantee a quick and easy VAT registration process by abiding by the rules specified in the Federal Law and fulfilling the relevant requirements. Our skilled VAT Registration and De-registration services are made to help companies in the UAE region meet these requirements so they may operate in full compliance with the VAT rules and avoid fines.

This article was published on  2 June 2023

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