Why Can’t You Ignore VAT Registration?
The Federal Tax Authority (FTA) imposes significant fines on businesses that delay their VAT registration after exceeding the mandatory threshold. Furthermore, obtaining a Tax Registration Number (TRN) gives you greater credibility with suppliers and customers and allows you to reclaim the VAT you paid on your business purchases.
Who Must Register for VAT in the UAE?
Every business must assess its revenue to determine its registration status, which is divided into two types:
| Registration Type | Required Threshold (Annual Revenue) | Notes |
|---|---|---|
| Mandatory Registration | Exceeds AED 375,000 | Registration must be completed within 20 business days of exceeding the threshold. |
| Voluntary Registration | Exceeds AED 187,500 | A good option for businesses wishing to recover input VAT early. |
Required Documents Checklist
Before starting your VAT registration in the UAE, make sure you have the following documents ready:
- A copy of the Trade License.
- Copies of passports and Emirates IDs for owners and managers.
- Memorandum of Association (for LLC companies).
- Company bank account information (IBAN).
- Proof of revenue (e.g., bank statements, invoices, contracts).
- An authorization letter for the legal representative (if a third party is registering).
Steps for VAT Registration (2025 Guide)
The process is straightforward when you follow these steps on the official portal:
- First, Create an Account: Create a new account on the official “EmaraTax” portal.
- Next, Fill Out the Registration Form: The form consists of several sections requiring accurate information about the company, owners, contact details, and business activities.
- Then, Upload Documents: Upload clear copies of all the required documents mentioned above.
- Afterward, Review the Application: Before submitting, carefully review all data and documents to ensure they are correct and complete.
- Finally, Wait for Approval: After submission, the FTA will review your application. Upon approval, you will receive the Tax Registration Certificate containing your TRN.
Frequently Asked Questions (FAQ)
How long does it take to get a Tax Registration Number (TRN)?
Typically, the process takes 5 to 20 business days. However, it may take longer if there is missing information or documents in the application for VAT registration in the UAE.
Do free zone companies need to register for VAT?
Yes, free zone companies are subject to the same tax laws. They must register if they sell goods or services within the UAE mainland and exceed the mandatory threshold.
What should I do after getting the TRN?
You must start charging 5% VAT on your invoices, file periodic tax returns (usually quarterly), and maintain accurate financial records for at least 5 years.
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Do You Need Help with Your VAT Registration?
At Tdabeer, our team specializes in helping businesses achieve tax compliance. We handle the entire VAT registration process for you, ensuring a correct and complete filing to avoid any potential penalties.
Contact us now for a tax consultation.
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