UAE Guide: How to Apply for VAT registration Number in Abu Dhabi and Dubai?

How to apply for VAT registration Number?


VAT in Dubai was introduced on 1st of January, 2018 to diversify its source of income for the benefits of the public. VAT is applicable at a standard rate of 5%. Registration under VAT means getting recognized by the government of UAE as an authorized supplier of goods and services. As per FTA, only registered suppliers can collect VAT. Also, it demands proper maintenance of books of accounts and other records for proper compliance under the law to avoid penalties.

Who needs to get registration under VAT in Dubai, Abu Dhabi, Sharjah, UAE?

Registration under VAT in Dubai is both mandatory and voluntary. A business entity must get itself registered under VAT laws if its aggregate taxable supplies exceed AED 375,000 in a year. However, a business entity may get itself registered under such law voluntarily if its aggregate taxable supplies or expenses exceed AED 187,500 in a year. Business entities falling below the above mentioned limits and engaged only in the supply of zero rated supplies are exempt from registration.

Benefits of registration under VAT in Dubai

Only businesses which are registered under VAT are authorized to:

  1. Charge VAT on supply of goods and services.
  2. Claim ITC on VAT paid on purchases.

Consequences of Non-registration for VAT in Dubai, Abu Dhabi, Sharjah, UAE

Whenever a person becomes liable to get registered under VAT laws, then it must get itself registered within 30 days. However, if a business entity fails to get its registration done within the stipulated time, then it has to face the following consequences:

  1. Penalties
  2. Liable to pay tax on supplies made for the time period in which he was liable to get registered.

Apply for VAT registration in Dubai, Abu Dhabi, Sharjah, UAE

A business can get itself register for VAT through e-services section on the FTA Website. The steps for the same are:

  1. Sign up or Login into e-services account in the FTA website
  2. If you are a new user, then register yourself first by following the registration procedure and verifying your e-services account (You have to verify your account within 24 hours of receiving the link, otherwise the link will expire).
  3. If you already have an account, simply login to your account.
  4. You can change your e-mail address on the portal by attaching some supporting documents as stated in the site.
  5. After logging in, you will see a box with a message “register under VAT”. Click the button to register.
  6. In order to get the registration done, fill up all the 8 sections by following the stated
  7. Registration information can be changed without any approval, as and when required. However, there are some changes which require approval from FTA in Dubai, UAE.

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