Value Added Tax (VAT) is an essential part of business operations in the United Arab Emirates (UAE). If you have recently set up a new company, it is crucial to understand how to register for VAT in UAE for new company to ensure compliance with local tax laws. This guide will provide you with step-by-step instructions on VAT registration, eligibility criteria, required documents, and compliance requirements.

What is VAT and Why is it Important for Businesses in the UAE?

VAT is an indirect tax imposed on the supply of goods and services. The UAE introduced VAT at a standard rate of 5% on January 1, 2018, to diversify revenue sources and reduce dependence on oil. Businesses that meet the VAT threshold must register to collect and remit VAT to the Federal Tax Authority (FTA).

Who Needs to Register for VAT in the UAE?

Businesses operating in the UAE must register for VAT if they meet any of the following conditions:

• Mandatory Registration: Businesses with an annual taxable turnover exceeding AED 375,000 must register for VAT.

• Voluntary Registration: Businesses with an annual taxable turnover between AED 187,500 and AED 375,000 can opt for voluntary VAT registration.

• Exemption: Businesses with turnover below AED 187,500 are not required to register for VAT.

Steps on How to Register for VAT in UAE for New Company

Step 1: Create an e-Services Account on the FTA Portal

To begin the VAT registration process, a company must create an account on the Federal Tax Authority (FTA) e-Services portal.

1. Visit the FTA website: https://eservices.tax.gov.ae

2. Click on ‘Sign Up’ to create an account.

3. Provide company details, including email address and contact information.

4. Verify your email and login to the portal.

Step 2: Fill Out the VAT Registration Form

Once logged in, businesses must complete the VAT registration form. The required details include:

• Business Details: Company name, trade license number, and business activities.

• Contact Information: Registered office address, email, and phone number.

• Bank Details: UAE-based bank account information for tax transactions.

• Turnover Details: Expected and historical revenue figures.

• Import and Export Information: Whether the company engages in international trade.

• Customs Registration: If applicable, details about the company’s customs registration.

Step 3: Upload the Required Documents

The following documents must be submitted along with the VAT registration application:

• Trade license copy

• Passport copy of the business owner(s) or authorized signatory

• Emirates ID copy

• Memorandum of Association (MOA)

• Bank account details

• Financial records (if applicable)

• Customs registration details (if involved in imports/exports)

Step 4: Submit the Application and Wait for Approval

After filling out the VAT registration form and uploading the necessary documents, businesses can submit their application. The FTA will review the application and may request additional information.

The approval process typically takes 3-5 working days. Once approved, businesses will receive a VAT registration certificate containing the Tax Registration Number (TRN).

Post-Registration Compliance Requirements

After registering for VAT, businesses must comply with the following requirements:

1. Issuing VAT Invoices: VAT-registered businesses must issue tax invoices that comply with UAE VAT laws.

2. Filing VAT Returns: VAT returns must be filed on a quarterly or monthly basis, depending on the company’s revenue.

3. Maintaining Records: Businesses must keep detailed records of invoices, VAT returns, and financial transactions for at least five years.

4. VAT Payment: Companies must pay VAT dues to the FTA within the stipulated deadline to avoid penalties.

How Albabtax Can Help with VAT Registration

Navigating VAT registration can be complex for new businesses. Albabtax offers expert VAT consultancy services to simplify the process. Our services include:

• Assistance with VAT registration and compliance

• Filing VAT returns and tax planning

• VAT refund assistance

• Ongoing tax advisory support

For professional VAT registration support, visit our VAT consultancy page: https://albabtax.com/vat-consultancy/.

Conclusion

Understanding how to register for VAT in UAE for new company is essential for ensuring compliance with UAE tax laws. By following the step-by-step process outlined above, new businesses can successfully complete VAT registration and meet all regulatory requirements. For hassle-free VAT registration and expert tax advice, consider consulting Albabtax for professional assistance.