VAT Registration Guide in UAE

1. Who is exempted from VAT in UAE?

Certain categories of goods and services are exempted from VAT in the UAE, including healthcare services, education services, certain financial services, and the sale or lease of residential buildings that are not intended for commercial use.

2. What is the standard rate of VAT in UAE?

The standard rate for VAT in UAE is 5%.

3. Who is required to pay VAT, UAE?

VAT is paid by the end consumer of goods or services. However, businesses are responsible for collecting VAT from their customers and remitting it to the government.

4. Is VAT registration mandatory in UAE?

Yes, VAT registration is mandatory for businesses in the UAE that meet certain turnover thresholds.

5. What are the documents required for VAT registration in UAE?

The documents required for VAT registration in UAE include a copy of the trade license, passport copies of the business owner and authorized signatories, and financial statements for the previous 12 months.

6. Who is required to register for VAT in UAE?

Businesses with an annual turnover of AED 375,000 or more are required to register for VAT in the UAE. Businesses with an annual turnover between AED 187,500 and AED 375,000 can choose to register voluntarily.

7. What is the minimum turnover for VAT in UAE?

The minimum turnover for VAT registration in the UAE is AED 375,000 per year.

8. What does a VAT consultant in UAE do?

VAT consultants in UAE provide businesses with expert advice and guidance on VAT preparation, registration and implementation. To add on, they manage VAT returns and refunds, and minimize taxable person’s VAT liabilities, in compliance with the VAT regulation and standards. 

9. Why do you need a VAT consultant for your business?

A VAT consultant can help your business stay compliant with VAT regulations and standards and manage your VAT returns and refunds, to which noncompliance accrues hefty fines. 

10. How to claim VAT refund in UAE?

Businesses can claim VAT refunds in the UAE by submitting a VAT refund application form through the Federal Tax Authority’s online portal.

11. How do I deregister from VAT?

Businesses can deregister from VAT in the UAE by submitting a deregistration application form through the Federal Tax Authority’s online portal.

12. When can a company deregister for VAT in UAE?

A company can deregister from VAT in the UAE if it no longer meets the VAT registration requirements or if it has ceased.

13. What does UAE VAT deregistration mean?

VAT deregistration in UAE refers to the process of removing a business from the VAT register.

14. What are the VAT deregistration penalties in UAE?

There are no penalties for deregistering from VAT in the UAE within a specified time frame, however, if the Registrant does not submit a deregistration application within the timeframe stipulated in the VAT law, they will be penalized with a fee of 1,000 AED for each delay and for every month thereafter until it reaches a maximum penalty of 10,000 AED