VAT Onboarding Support in Dubai

VAT onboarding is the process of applying with the UAE Federal Tax Authority (FTA) so your business can charge, collect, and remit VAT on taxable goods and services.

Once VAT-active, your business can:

• Charge VAT on sales and remit the collected tax to the FTA.
• Reclaim VAT paid on eligible business purchases and expenses from suppliers.

A business with taxable supplies & imports exceeding AED 375,000 per year must register for VAT in the UAE. This is called Mandatory VAT Registration.

A business with taxable supplies & imports exceeding AED 187,500 per year can register for VAT in the UAE. This is called Voluntary VAT Registration. The benefit of doing this is that you can reclaim VAT that you have paid on business expenses, purchases, and imports — reducing overall costs.

Taxable Supplies could mean the service charge a consultancy takes from clients, or a product (either 5% or 0% rated) that a grocery sells to a client. 

Imports may mean stuff like imported software subscriptions (from outside UAE), or imported groceries (from outside UAE)

For example, in case of a grocery store:

Taxable supplies = almost all sales (5% items + 0% essential foods).
Imports = foreign-purchased goods & equipment.
If your annual taxable turnover (supplies + imports) exceeds AED 375,000, VAT registration is mandatory.

Non-resident businesses making taxable supplies in the UAE must register regardless of threshold.

Exemption from VAT Registration: Some businesses may be eligible for an exemption from VAT registration based on specific criteria or industry-related considerations.

These distinctions determine whether a business is obliged to register for VAT or has the choice to do so voluntarily, or if they qualify for an exemption from VAT registration.

Free zone entities are not automatically exempt from VAT. If they supply goods or services within the UAE or to mainland customers, and their taxable turnover exceeds the threshold, they must register for VAT.

However, companies in Designated Free Zones (as defined by the FTA) may be treated differently for certain transactions — for example, supplies within the same designated zone may not attract VAT. Our VAT experts can assist you with application of VAT for free zone companies.

Once registered, your business is required to do the following:

• Impose VAT on the taxable supply of goods and services.
• Assert Input Tax Credit for VAT payments made on their purchases, which will be subtracted from their VAT liability on sales.
• Submit VAT payments to the government.
• Periodically file VAT returns.
• In addition to the above, all registered businesses must align their business reporting structure in accordance with compliance requirements. This includes maintaining accurate and up-to-date financial records, as well as tax-related documents such as tax invoices, credit notes, debit notes, and records of all inward and outward supplies.

For online VAT registration in the UAE, the following documents are required:

1. Copy of Trade License (should not be expired).
2. Passport copy of the owners/shareholders/managers who own the trade license (should not be expired).
3. Emirates ID copy of the owners/shareholders/managers who own the trade license (should not be expired).
4. Contact details of the company (P.O Box and complete address, including building and area).
5. Memorandum of Association (MOA) – not mandatory for sole establishments.
6. Concerned person’s contact details (Mobile Number, Designation, Email Address).
7. Bank details of the company (Must be the company’s bank account – Individual’s bank account will not be accepted) – (Account Name, Account Number, IBAN, Bank Name, Branch Name) – OPTIONAL.
8. Turnover declaration for the last 12 months (should be signed and stamped by the owner of the company and must be printed on the company’s letterhead).
9. Sample of sales or purchase invoices (Signed and Stamped).
10. If the business deals with the customs department, attach a customs letter.

All the necessary documents for VAT registration will be submitted to the Federal Tax Authority (FTA) through an online process.

Businesses in the UAE can also apply for Tax Group Registration. Multiple businesses of different natures can form a tax group. According to the Federal Tax Authority (FTA), if an individual holds more than 50% shares in more than one company, they can create a tax group for all the companies, and the FTA will issue a single TRN for the entire group of companies.

1. Account creation on the FTA portal

    

2. Completion of business and contact details

    

3. Submission of required documents

    

4. Declaration of VAT registration threshold

    

5. FTA review and approval process