VAT Registration and Advisory Services in the UAE

VAT has applied in the UAE since 1 January 2018 at a standard rate of 5%. Every business that meets the registration threshold must register with the Federal Tax Authority, charge VAT correctly, and file returns on time. Dawn Consultancy has advised on UAE VAT since it was introduced: registration, deregistration, advisory on complex transactions, and FTA audit support, for mainland, free zone and offshore entities. For the ongoing return filing cycle, see our VAT return filing service.

Who must register

• Mandatory registration: taxable supplies and imports exceeding AED 375,000 in the preceding 12 months, or expected to exceed it in the next 30 days
• Voluntary registration: available once taxable supplies or expenses exceed AED 187,500, useful for start-ups that want to recover input VAT before generating significant revenue
• Tax groups: two or more UAE entities under common control can register as a single VAT group, filing one return and disregarding VAT on transactions between group members

Our VAT registration and advisory services

• Registration threshold assessment and EmaraTax application, individual or as a tax group
• Designated zone analysis: goods moved within and between designated zones (DMCC, JAFZA and others) are generally outside the scope of VAT, but the rules are transaction-specific
• Advisory on real estate transactions: residential first supply (zero-rated), subsequent residential supply (exempt), and commercial property (standard-rated)
• Advisory on export documentation to support zero-rating of goods and services supplied outside the UAE
• Import VAT and reverse-charge mechanism set-up for goods and services purchased from abroad
• VAT clauses in contracts and pricing structures, so VAT treatment is agreed before a dispute arises
• Sector-specific advisory: healthcare, education, financial services and precious metals each have their own VAT treatment
• Tax group formation and disbandment
• Deregistration when turnover falls below the threshold or a business closes

Registration documents required

• Trade licence and certificate of incorporation
• Passport and Emirates ID of the owner, partners and authorised signatory
• Memorandum of association
• Bank account details
• Financial records evidencing turnover, or a revenue forecast for voluntary registration
• Customs registration number, where the business imports or exports goods

How registration works

1. Threshold assessment based on your last 12 months of supplies, or forecast turnover
2. Application prepared and submitted on EmaraTax with supporting documents
3. Response to any FTA clarification requests
4. Tax Registration Number (TRN) issued, typically within 20 business days of a complete application
5. Set-up of tax invoices, VAT-compliant accounting codes and your first return period

Getting VAT wrong is expensive

Charging VAT incorrectly, missing the registration deadline, or recovering input VAT on blocked expenses all carry fixed and percentage-based penalties from the FTA (see our VAT return filing page for the penalty table). Getting the initial registration and VAT treatment right avoids a costly correction later, particularly for real estate, designated zone and cross-border transactions where the rules are not always intuitive.

Frequently asked questions

Other free zones we serve

Get started

Email your trade licence and turnover figures to info@dawnconsultancy.com, call +971 55 441 1036, or request a call back. Related: VAT return filing, Corporate Tax services.