What are the different Types of VAT Registration in UAE?
In the UAE, there are different types of VAT registration available based on the nature of business
activities and the annual turnover of the business. The two main types of VAT registration are:
1. Mandatory VAT Registration:
Businesses that meet or exceed the mandatory registration threshold are required to register for
VAT. As of September 2021, the mandatory registration threshold is AED 375,000. If a business's
taxable supplies and imports in the previous 12 months exceed this threshold, or if there are
reasonable grounds to believe that the threshold will be exceeded in the next 30 days, VAT
registration becomes mandatory.
2. Voluntary VAT Registration:
Businesses that do not meet the mandatory registration threshold can still opt for voluntary VAT
registration. Voluntary registration allows businesses to benefit from VAT-related advantages, such
as claiming input VAT on business expenses and building trust with potential customers who prefer
dealing with VAT-registered entities.
In addition to these main types, there are certain special cases where VAT registration is required:
1. Non-Resident VAT Registration:
Non-resident businesses that make taxable supplies in the UAE are required to register for VAT,
regardless of their turnover threshold. This ensures that non-resident businesses comply with VAT
regulations and fulfill their tax obligations in the UAE.
2. Group VAT Registration:
Eligible companies within a group structure can apply for group VAT registration, where one entity
acts as the representative member and registers on behalf of the group. Group registration allows
for simplified VAT compliance within the group and the consolidation of VAT reporting.
It is essential for businesses to understand the specific requirements and criteria for each type of
VAT registration to ensure compliance with UAE VAT laws. Consulting with VAT experts or professional
advisors can provide valuable guidance on the appropriate type of VAT registration based on the
nature and scale of the business.
Required Documents for VAT Registration in UAE
The specific documents required for VAT registration in the UAE may vary based on factors such as
the type of business, nature of activities, and legal entity. However, generally, the following
documents are commonly required for VAT registration:
1. Trade License
2. Emirates ID and Passport Copies
3. Memorandum of Association (MOA) and Articles of
Association (AOA)
4. Certificate of Incorporation
5. Bank Account Details
6. Financial Statements
7. Business Premises Proof
8. VAT Group Registration Documents
Benefits of being vat registered
Being a VAT registered business in the UAE offers several benefits, including:
1. Compliance with the Law
2. Credibility and Trust
3. Input Tax Recovery
4. Competitive Advantage
5. Business Opportunities
6. Expansion Possibilities
7. Improved Financial Management
8. Avoidance of Penalties
9. Simplified Cross-Border Transactions
Get in touch today to inquire about or avail our VAT registration services!
Take control of your business finances and ensure accurate financial records with our professional
VAT registration services. Book now to streamline your financial management and gain peace of mind
knowing your financial transactions are in expert hands.
