VAT Registration in Dubai

Value Added Tax (VAT) is a tax system that businesses in the UAE must follow to meet tax requirements. VAT Registration in Dubai is a process that businesses in the UAE must go through to comply with tax laws. This tax system was introduced in the UAE on January 1, 2018, as a way for the government to collect taxes on goods and services.

Registering for VAT is important for businesses because it allows them to legally operate and sell their products or services in the UAE. When a business is registered for VAT, it means they can charge VAT on their sales and then pay that collected VAT to the government.

What is VAT Registration? 

Value Added Tax (VAT) was introduced in the UAE in 2018 as a consumption tax levied on the value added to goods and services at each stage of the supply chain. VAT registration procedure in Dubai is an important step for businesses operating in the UAE to comply with tax regulations.

VAT registration is like signing up officially with the government to join a tax system called Value Added Tax (VAT). The main goal of VAT registration is to help businesses collect and pay the right amount of VAT on the things they sell, which is important to follow the tax rules and support the government with tax money.

There are two types of VAT Registration:

Mandatory VAT Registration:

This is when businesses must register for VAT because they meet certain rules set by the government. For instance, in the UAE, if a business's sales and imports are more than AED 375,000 in a year,  within the past 12 months or expecting to exceed it in the next 12 months they must register for VAT. This ensures that bigger businesses pay their fair share of taxes.

Voluntary VAT Registration:

Businesses with taxable supplies exceeding AED 187,500 but not exceeding AED 375,000 in the preceding 12 months or anticipated to exceed AED 375,000 in the next 12 months can choose to register voluntarily. Some businesses can choose to register for VAT even if they don't have to by law. They might do this to get back some of the VAT they paid on things they bought for their business or to show they are reliable in business. But once they register voluntarily, they have to follow all the VAT rules just like mandatory registrations.

The main difference between these two types is that mandatory registration is a must based on rules, while voluntary registration is a choice businesses can make for some benefits or to show they are responsible for handling taxes.

Who Should Register for VAT in UAE

Importance of VAT Registration in UAE

VAT registration is required for businesses to:

• Comply with tax laws and avoid penalties
• Claim input tax credits
• Avoid additional costs on goods and services
• Improve  business credibility and reputation
• Expand business opportunities and competitiveness

All these things necessarily specifies the importance of VAT registration in Dubai, UAE

Who Should Register under VAT?

It's a common question among business owners and individuals that who all should be registered for VAT in the UAE. The following details helps to get a better idea of the same. 

VAT Registration Eligibility

Local businesses and international corporations operating in the UAE must register for VAT within 30 days of their taxable supplies and imports exceeding the mandatory registration threshold of AED 375,000. Enterprises that do not meet the required limit can still register voluntarily.

The following businesses or individuals should register under VAT in UAE:

Mandatory Registration:

• Businesses with an annual taxable supply exceeding AED 375,000.
• Businesses that expect to exceed the AED 375,000 threshold in the next 30 days.
• Businesses involved in the supply of goods and services are subject to VAT, regardless of turnover.

Voluntary Registration:

• Businesses with an annual taxable supply below AED 375,000.
• Businesses making zero-rated supplies (e.g., exports).
• Businesses wanting to claim VAT refunds.
• Businesses seeking to improve their credibility and reputation.

Other Eligible Persons:

• Non-resident businesses making taxable supplies in the UAE.
• Businesses providing services related to real estate, including renting or leasing.
• Businesses involved in the supply of goods and services are subject to VAT, even if the turnover is below the threshold.

To be eligible for VAT Registration in Dubai, businesses must:

• Be a legal entity (individual, company, partnership, etc.).
• Carry out economic activities (business, trade, profession, etc.).
• Make taxable supplies (goods and services subject to VAT).

Below is  a link to our detailed article on the eligibility criteria for VAT registration in Dubai, UAE.

Eligibility Criteria for VAT Registration in UAE

Benefits of Voluntary Registration

Businesses that sign up voluntarily can get back some of the VAT they paid on things they bought for their business, which can help reduce the total VAT they owe. Voluntary registration also shows that a business is following tax rules and can make it look good to customers and partners.

If a business makes a lot of sales or brings in a lot of stuff, they have to join VAT. If they choose to join even though they don't have to, they can get back some of the tax they paid on their purchases and look good in the eyes of others.

VAT Turnover Calculation for Registration in UAE

To calculate the VAT turnover for Registration in UAE, follow these steps:

Identify taxable supplies: Include all goods and services subject to VAT at the standard rate (5%) or zero rate (0%).

Calculate the value of taxable supplies:

• For goods: the value of goods sold + customs duty + excise tax (if applicable)
• For services: value of services provided

Include exempt supplies: Add the value of exempt goods and services (e.g., financial services, healthcare, education)

Add the value of imported goods: Include the customs duty and excise tax (if applicable)

Example:

• Taxable goods sold:  AED 1,000,000
• Customs duty:  AED 50,000
• Excise tax:  AED 20,000
• Taxable services provided:  AED 500,000
• Exempt goods sold:  AED 200,000
• Imported goods (customs duty and excise tax):  AED 30,000

Total VAT turnover: AED 1,800,000 (AED 1,000,000 + AED 50,000 + AED 20,000 + AED 500,000 + AED 200,000 + AED 30,000)

If the total VAT turnover exceeds AED 375,000, the business must register for VAT.

Mistakes to Avoid When Registering for VAT in Dubai

• Incomplete Documents: Before you start your registration, make sure you have all the necessary documents ready.
• To Register Late: Register on time to avoid penalties and interest charges.
• Incorrect Threshold Calculation: Check your annual income carefully to see if VAT registration is mandatory.
• Misunderstanding of VAT Rates: Understand the different VAT rates that apply to your products and services.
• Poor Record Keeping: Keep accurate and detailed records of all transactions.
• Ignore Tax Points: time management to ensure accurate VAT calculations.
• Don’t Seek Professional Advice: Contact a tax advisor for guidance on complex VAT rules.
• Reverse Charge Mechanism Overview: If applicable, understand and use the reverse charge mechanism.

You can also check some of the other top mistakes one should avoid while registering for VAT in Dubai. 

What is a VAT Declaration Letter?

A VAT declaration letter is a document that confirms a business's VAT registration status and details its VAT obligations. It is typically issued by the Federal Tax Authority (FTA) in the UAE and includes the following information:

• Business details: Name, address, and TRN (Tax Registration Number)
• VAT registration status: Confirms whether the business is registered for VAT or not VAT registration number:
• VAT registration number: Provides the unique VAT registration number assigned to the business
• Effective date of registration: Specifies the date from which the business is required to charge VAT
• VAT obligations: Outlines the business's obligations, such as filing VAT returns, paying VAT due, and maintaining VAT records
• VAT exemption: Indicates if the business is exempt from VAT or not
• Signature and stamp: Authorized signature and stamp of the FTA

The VAT declaration letter is an important document that businesses must keep as proof of their VAT registration and compliance with VAT regulations in the UAE. It may be required to be submitted to banks, government entities, or other businesses for various purposes.

Documents Required for VAT Registration in UAE

The following are the major documents required for the VAT registration process in dubai

• Trade License: This shows that the business is allowed to operate in the UAE.
• Emirates ID and Passport Copy: These prove who you are and that you can register the business.
• Financial Statements: These show how the business is doing financially.
• Bank Account Details: This is where VAT-related money goes in and out.
• VAT Registration Form: This is like a request to join the VAT system.
• Proof of Business Activities: These show what the business does and if it involves VAT.
• Customs Registration Number (if needed): This is for businesses that import or export goods.

The FTA may request additional documents or information to support the VAT registration application. It's important to make sure that all documents are valid, accurate, and complete to avoid any delays or rejection of the VAT registration application.

For Taxable Supplies:

• Audit report (audited or non-audited financial statement).
• Self-prepared calculation sheet based on financial records to calculate taxable/zero-rated supplies.
• Revenue projection supported by documentation (such as a contract or local purchase order).
• On the organization's letterhead, the authorized signatory signs and stamps the monthly turnover statement.
• Supporting financial documents (e.g., invoices, contracts, title deeds, tenancy contracts).

For Taxable Expenses:

• Audit report (audited or non-audited financial statement).
• Expense budget report.

Additional Documents:

• Articles of Association/Partnership Agreement (if applicable).
• Certificate of Incorporation (if applicable for Legal Person).
• Ownership information documents.
• Customs details (if applicable).
• Power of Attorney documents (if applicable).
• Club, charity, or association registration documents (if applicable).
• Copy of the Decree (if applicable).
• Other relevant documents provide information about your organization, activities, and size.

Here are the forms you might need to fill out and submit with your online application:

• Turnover Declaration Template for Taxable Supplies
• Turnover Declaration Template for Taxable Expenses
• Turnover Declaration Letter Form

These documents are needed to make sure the business is real, financially stable, and does things that involve VAT. It is important to be honest and obey the laws when it comes to taxes.

VAT Registration Requirements in Dubai

How to Apply for VAT Registration in UAE?

VAT registration in the UAE is a crucial requirement for businesses meeting the mandatory or voluntary registration thresholds. The process is carried out via the EmaraTax portal, which is managed by the Federal Tax Authority (FTA). Below is a detailed info on how to do VAT registration in Dubai. 

Login to EmaraTax

• Visit the FTA website and log in to your EmaraTax account using your credentials or UAE Pass.
• If you don’t have an account, click Sign Up to create a new account.
• If two-factor authentication is enabled, enter the OTP received on your registered email or mobile number.

Access the VAT Registration Section

• Upon login, the Taxable Person Dashboard will appear.
• Click Register under the VAT section to begin your VAT registration application.

Read and Accept Guidelines

• A page with Guidelines and Instructions will be displayed.
• Carefully review the information and mark the checkbox to confirm your understanding.
• Click Start to begin the application.

Provide Entity Details

• Choose the Entity Type (Legal Person, Natural Person, etc.).
• Depending on the entity type, the required input fields may vary.
• Click Save as Draft if you want to complete the application later.
• Click Next Step to proceed.

Enter Identification and License Details

• Enter the Trade License Number (if applicable).
• Trade licenses are not required for:
  • Natural Person – Partnership/Heirs of Natural Person
  • Legal Person – Foreign Business
  • Legal Person – UAE Government Entities
• Click Next Step after completing the mandatory fields.

Provide Business Activities Information

• Click Add Business Activities and enter details.
• Ensure all activities are included, as the system will generate an activity code.
• Click Next Step to proceed.

Add Owner and Branch Details

• Click Add Owners and enter the required details.
• If your business has branches, select Yes and provide the relevant details.
• VAT registration will be under the head office name, even if there are multiple branches.
• Click Next Step to continue.

Determine VAT Registration Eligibility

• Enter details of Taxable Supplies and Taxable Expenses. You can either:
  • Upload an Excel file with details, or
  • Manually enter the amounts on the screen.
• Based on the provided figures, the system will determine if VAT registration is Mandatory, Voluntary, or Not Applicable.
• Click Next Step to proceed.

Enter Contact Details

• Provide the registered business address.
• If a foreign business is applying, they may appoint a Tax Agent and enter their details.
• Click Next Step to proceed.

Add Business Relationships

• Enter details of the CEO, Manager, Directors, or Partners.
• Click Add Relationships if there are additional persons.
• Click Next Step to continue.

Provide Bank Details (Optional)

• Although not mandatory, it is advisable to enter bank details to avoid delays in VAT refunds.
• Ensure the account name matches the legal entity name.
• Click Next Step after entering the details.

Enter GCC Business Activities and Customs Details (If Applicable)

• If you import goods/services from GCC countries, click Add GCC Business Activities and enter:
  • The GCC country name.
  • The Tax Registration Number (TRN) if registered for VAT in the GCC.
  • The estimated value of imports over the next 12 months.
• If registered with UAE Customs, provide the Customs Registration Number (CRN) and upload supporting documents.
• Click Next Step to proceed.

Assign an Authorized Signatory

• Click Add Authorized Signatory and enter details.
• If the CEO or Manager is the signatory, select Yes (the details will auto-populate).
• If another person is the signatory, select No and enter their information manually.
• Upload the Power of Attorney (PoA) or supporting documents.
• Click Next Step to proceed.

Review and Submit the Application

• Carefully review all the entered details.
• Mark the Declaration Checkbox confirming that the provided information is correct.
• Click Submit to send the VAT registration application.

Post-Submission Process

• Upon successful submission, a Reference Number is generated.
• The FTA will:
  • Approve, Reject, or Request Additional Information via email.
  • Notify you of the application’s status via the EmaraTax dashboard.
• If approved, you will receive your VAT Registration Certificate and TRN (Tax Registration Number).

VAT Registration Certificate

A VAT Registration Certificate is a document issued by the Federal Tax Authority (FTA) in the UAE, confirming a business's registration for Value-Added Tax (VAT). A VAT Registration certificate, also known as a VAT Registration Letter, is a document that contains the following details:

• Business name and address
• VAT registration number (VRN)
• Effective date of VAT registration
• Business activity
• VAT registration type (e.g., standard, zero-rated, exempt)
• FTA's logo and signature

The VAT Registration Letter is issued within 10 working days after the FTA approves the VAT registration application. It serves as proof of a business's VAT registration and is required for various purposes, such as:

• Opening a VAT account with a bank
• Issuing VAT invoices
• Claiming VAT refunds
• Complying with VAT audits and inspections
• Updating business records and licenses

The VAT Registration Certificate is an important document that businesses must keep safely, as it confirms their VAT registration status and is required for various VAT-related transactions.

VAT Registration Number 

In the UAE, the following terms are interchangeable and refer to the same thing:

• VAT Number
• TRN Number (Tax Registration Number)
• VAT Tax Number
• VAT Identification Number
• VAT Registration Number

This number is a unique 15-digit identifier assigned to a business by the Federal Tax Authority (FTA) upon successful VAT registration. It is used to identify the business for VAT purposes and is required on VAT invoices, returns, and other VAT-related documents.

The format of the TRN/VAT Number in the UAE is as follows:

123456789012345

It consists of:

• The first three digits (123) represent the tax authority (FTA)
• The next nine digits (456789012) represent the unique identifier for the business
• The last three digits (345) represent the check digits (calculated based on the previous nine digits)

Businesses must display their TRN/VAT Number on all VAT-related documents, including invoices, receipts, and credit notes, to validate their VAT registration and comply with UAE VAT regulations.

VAT Registration Process for UAE Non-Residents

Non-residents can register for VAT in the UAE under these conditions. Here's an explanation of the process and requirements for VAT registration for non-residents:

Eligibility

 Non-residents can register for VAT in the UAE if they meet the following criteria:

• They have a business or economic activity in the UAE that involves taxable supplies.
• They do not have a place of residence or fixed establishment in the UAE

Requirements for Non-Resident Registration for VAT in Dubai

• Tax Agent: Non-resident businesses must appoint a tax agent who is authorized to act on their behalf regarding VAT matters in the UAE.
• Tax Identification Number (TIN): Non-resident businesses must obtain a Tax Identification Number (TIN) from the Federal Tax Authority (FTA) in the UAE.
• VAT Registration Application: Non-resident businesses need to submit a VAT registration application to the FTA through their appointed tax agent.

Non-Resident Registration Procedure for VAT Registration in Dubai

• Appointment of Tax Agent: The non-resident business appoints a tax agent who will handle all VAT-related tasks on their behalf, including registration, filing returns, and communication with tax authorities.
• TIN Application: The tax agent applies for a Tax Identification Number (TIN) for the non-resident business from the FTA.
• VAT Registration Application: The tax agent submits the VAT registration application to the FTA on behalf of the non-resident business. The application includes necessary documents such as proof of business activities in the UAE and the appointment of the tax agent.

Verification and Approval

Once the VAT registration application is submitted, the FTA verifies the information provided and may conduct further checks if needed. If everything meets the requirements, the FTA approves the VAT registration for the non-resident business.

Ongoing Compliance

After registration, non-resident businesses must comply with all VAT regulations in the UAE, including filing VAT returns, maintaining proper records, and adhering to tax deadlines. Their appointed tax agent assists them in fulfilling these obligations.

Non-residents can register for VAT in the UAE if they have a business activity in the country and meet specific requirements. They must appoint a tax agent, obtain a Tax Identification Number (TIN), and submit a VAT registration application through their tax agent to the Federal Tax Authority (FTA) in the UAE.

How to be Compliant after VAT Registration in UAE?

To be compliant after VAT registration in UAE, follow these steps:

• Charge VAT: Apply VAT to all taxable goods and services at the applicable rate (5% or 0%).
• Issue VAT invoices: Create and issue VAT-compliant invoices, including your TRN, VAT amount, and other required details.
• File VAT returns: Submit VAT returns to the FTA within the specified timeframe (usually every quarter).
• Pay VAT dues: Pay VAT amounts to the FTA by the deadline to avoid penalties.
• Maintain records: Keep correct and detailed records of all VAT-related transactions, invoices, and payments.
• Display TRN: Show your TRN on all invoices, receipts, and business documents.
• Update accounting systems: Make sure your accounting software and systems are VAT-compliant.
• Train staff: Educate employees on VAT rules and procedures.
• Comply with FTA requirements: Follow FTA guidelines and regulations.

Time frame for VAT Registration Process in Dubai, UAE

• The time it takes to process a VAT registration application in the UAE can change based on different things. These include how well the application is filled out, how busy the tax office is, and if they need more details.
• First, you submit your VAT registration form and all the needed documents to the tax authority through your tax agent. Things get started.
• Then, the tax authority looks at your application to make sure everything is there and correct.
• If they need more info, they might ask you or your tax agent for it. This can be about what your business does or your finances.
• If everything is good and they have all they need, they approve your VAT registration.
• Once approved, they give you a special tax number you need for VAT transactions.
  
  

The deadlines for VAT registration in UAE :

Once a business's taxable supplies or imports exceed the mandatory registration threshold of AED 375,000, it must register for VAT within 30 days. Failure to register within this time frame will result in substantial penalties.

VAT Tax Group Registration Process in UAE 

VAT (Value Added Tax) Tax Group Registration is a special provision that allows two or more legally independent entities to register as a single taxable person for VAT purposes under certain conditions.

• Login to EmaraTax
• Access the Taxable Person Dashboard
• Initiate Tax Group Registration
• Click ‘Register’ to begin the group registration.
• Confirm that you are the Representative Member of the group by selecting ‘Yes’.
• Review the guidelines carefully.
• Tick the checkbox to acknowledge the instructions and click ‘Start’.
• Enter Representative Member Details
• Add Group Members
• Provide Tax Group Details
• Choose a preferred effective date.
• The system will also show a default date based on FTA rules (usually first day of the tax period following the application date).
• Provide a reason for your preferred date.
• Fill out all required fields about group structure and control.
• Upload supporting documents that prove eligibility under control conditions.
• Review the list of authorized signatories.
• Add new signatories if needed.
• Go through all sections of your application.
• Tick the declaration checkbox to confirm accuracy of the information.
• Click ‘Submit’.
• A reference number is generated – keep it safe for tracking.
• You will be notified via email and the EmaraTax dashboard.

VAT exemptions in the UAE

In the UAE, the following goods and services are exempt from VAT:

• Healthcare services: Medical treatments, doctor fees, and hospital charges.
• Education services: Tuition fees, educational institutions, and related services.
• Real estate transactions: Sales and leases of residential property (excluding commercial property).
• Local passenger transport: Taxi services, bus fares, and metro fees.
• Certain food items: Basic food staples like rice, bread, milk, and meat (excluding luxury or processed foods).
• Certain healthcare goods: Medicines, medical equipment, and related products.
• Charitable activities: Donations, charity work, and related services.
• Religious services: Mosque, church, and temple services (excluding religious books and accessories).
• Government services: Public services like municipality fees, parking fees, and government agency fees.
• Financial services: Bank interest, loans, and related financial services (excluding insurance and reinsurance).
  
  

VAT Record-Keeping Requirements for Businesses in the UAE

To stay compliant with VAT regulations in the UAE, businesses must keep accurate and complete records of all VAT-related activities. These records should cover:

• Sales Invoices: Details of all invoices issued to customers, including the date of the transaction, the value of the goods or services provided, and the VAT charged.
• Purchase Invoices: All invoices received from suppliers, clearly showing the transaction date, the value of items or services purchased, and the VAT paid.
• Input Tax Credit Documentation: Proper records to support any input tax claims, such as purchase invoices, payment proofs, and relevant bank statements.
• VAT Returns: Copies of all submitted VAT returns for reference and audit purposes.
• General Ledger: A full accounting ledger that reflects all business transactions, including those related to VAT.
  
  

Keeping these records up to date and organized is essential, not only for compliance but also for smooth audits and accurate financial reporting.

Penalties for Non-Registration

Not signing up for VAT when you have to can lead to problems in the UAE including VAT penalties. Following are some of them: 

Money Fines: You might have to pay fines if you don't register for VAT like you're supposed to. These fines can change based on how long you wait and how serious the problem is.

Legal Trouble: The tax office can take legal action against you for not registering. This could mean warnings or even going to court if you keep doing business without VAT registration when you're supposed to have it.

Inability to Conduct Business: If you don't register, the tax office might stop you from doing certain business activities. For example, you might not be able to give out tax invoices or get government contracts until you follow the VAT rules.

Tax Liability: Not signing up for VAT doesn't mean you don't have to pay taxes. You might still owe VAT on things you sell, and not paying can lead to more fines and interest on the overdue taxes.

Bad Reputation: Not following tax rules can make your business look bad. It might scare off customers, suppliers, and partners who want to work with businesses that play by the rules.

The penalty for non-registration under UAE VAT is as follows:

Voluntary disclosure:

• 5% of the tax amount payable, if the registration is done within 30 days from the date of notification
• 10% of the tax amount payable, if the registration is done between 31 days to 60 days from the date of notification
• 20% of the tax amount payable, if the registration is done after 60 days from the date of notification

Mandatory disclosure:

• 50% of the tax amount payable, if the FTA notifies the taxpayer of their obligation to register

 Failure to register:

• AED 20,000 to AED 50,000

Failure to submit VAT returns or pay VAT due:

• AED 1,000 to AED 5,000

Note: The penalties can be waived or reduced if the taxpayer can provide a reasonable excuse for non-registration or late registration.

It is important to note that the FTA may also impose penalties for other VAT-related offenses, such as:

• Failure to maintain proper records
• Failure to issue tax invoices
• Failure to pay VAT due
• Making tax evasion or fraud

Why Should You Choose Reyson Badger for VAT Registration in Dubai?

Choosing Reyson Badger to help with your VAT registration means you get expert advice for dealing with the UAE's VAT rules. Reyson Badger's role is important in making sure your VAT Registration in Dubai goes smoothly and follows all the rules. We guide you through the process, make sure you have all the right documents, and help you avoid mistakes that could cause problems later.

Note: Here are the main things to know about VAT registration in the UAE: You have to register if your business meets certain criteria, it's important to fill out the forms correctly, and not registering can lead to fines and other issues. To get the best advice for your situation, it's a good idea to talk to a tax advisor like Reyson Badger. We can give you personalized help and make sure you're following all the rules correctly.

FAQ

1. How much time does it take to get the VAT Certificate?

Answer: Once the VAT registration application is submitted with complete and accurate information, it typically takes 5 to 20 working days for the Federal Tax Authority (FTA) in the UAE to review and issue the VAT Certificate. However, delays may occur if additional documents or clarifications are requested by the FTA.

2. How to merge or group VAT registration?

Answer: To group VAT registration in the UAE, businesses must apply for a VAT Tax Group through the Federal Tax Authority (FTA). This is allowed when two or more related companies meet the following conditions:

• All entities are legal persons (not sole establishments).
• Each entity is resident in the UAE.
• They are related parties and operate under common control.
• All entities are registered or eligible for VAT registration.
  
  

Once approved, the group receives a single Tax Registration Number (TRN), and all intra-group transactions are disregarded for VAT purposes. You can apply via the FTA e-Services portal.

3. I have a store on my emirates id. how can i register ?

Answer: If you own a store registered under your Emirates ID, you can register it for VAT or other relevant licenses by submitting the required documents through the Federal Tax Authority (FTA) portal or relevant licensing authority. You’ll typically need your Emirates ID, trade name details, store location, and financial records. It’s advisable to consult a tax or business registration expert to ensure compliance with UAE regulations and streamline the registration process.

4. Does the investor also have to get the VAT registration done or only the owner?

Answer: VAT registration must be done under the name of the legal entity conducting taxable supplies. If the investor is not running the business directly, only the entity or business owner needs to register.

5. I have one store in my name; does it come under VAT or not?

Answer: If your store’s taxable turnover exceeds AED 375,000 in the past 12 months, VAT registration is mandatory. Voluntary registration is possible if it exceeds AED 187,500.

6. Shop establishment license was issued only last month. My business has just started. Should I wait or register for VAT immediately?

Answer: You should register for VAT once your taxable turnover crosses AED 375,000. However, if you anticipate reaching that threshold soon, it is advisable to prepare for VAT compliance early.

7. How to get a VAT code?

Answer: To get a VAT code (also known as a Tax Registration Number or TRN) in the UAE, you need to register for VAT with the Federal Tax Authority (FTA). This involves creating an account on the FTA portal, completing the VAT registration form, and submitting the required documents such as trade license, Emirates ID, passport copy, and financial records. Once your application is reviewed and approved, the FTA will issue your VAT code (TRN).

8. I have recently opened a branch in Abu Dhabi. How to link VAT certificate for that branch?

Answer: You do not need a separate VAT registration for branches. VAT registration is done at the legal entity level. Ensure the branch activities are covered under your existing VAT registration.

9. Can I register for VAT using an existing TRN of an old company?

Answer: No, VAT registration is not transferable. Each legal entity must have its own VAT registration. A new company must apply for a new TRN.

10. I don’t have any sales proof or purchase proof. I don’t have documents to support my VAT filing. What should I do?

Answer: Maintain proper accounting records including invoices for purchases and sales. Without documentation, VAT returns may be rejected or lead to penalties. Seek professional help to reconstruct and organize your records.