VAT Registration

Who is required to register for VAT?

Every taxable person resident of a member state whose value of annual supplies in the member state exceeds or is expected to exceed the mandatory registration threshold. The threshold for registration will be:

Mandatory registration threshold: AED 375,000

Voluntary registration threshold: AED 187,500

Threshold will be calculated as follows:

-           Total value of supplies made by a taxable person in the previous 12 months; or

-           Taxable supplies can be made by the business in next 30 days that will have a value more than the threshold of mandatory registration.

-           Value of exempted supplies will not be considered for computing the annual supplies

No threshold applies to non-resident taxable entities, they are required to register.

During the application process various documents will be requested to validate the information provided. It is advisable to have these to hand prior to starting the application and copies of the documents should be uploaded with the application. These documents include such items as:

• Documents identifying the authorized signatory e.g. passport copy, Emirates ID
• Trade license copy of the company
• Other official documents authorizing the entity/individual to conduct activities within the UAE e.g. certificate of incorporation, articles of association, power of attorney etc.
• Description of business activities
• Turnover for the last 12 months in AED
• Supporting document for 12-month sales
• Expected turnover in next 30 days
• Estimated value of imports for one year from each GCC countries
• Estimated value of exports for one year to each GCC countries
• Whether you expect to deal with GCC suppliers or customers
• Supporting documents for customs registration in each Emirates if applicable.

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