ICB is a leading provider of VAT registration services in the UAE.
Value Added Tax (VAT) is an indirect tax applied to the consumption of goods and services at each stage of the supply chain. While businesses act as intermediaries in collecting VAT, the cost is ultimately borne by the end consumer. The United Arab Emirates introduced VAT on 1st January 2018, at a rate of 5%, as part of a broader initiative to diversify its economy and reduce dependency on oil revenue.
For businesses in the UAE, handling the VAT framework can be complex due to evolving regulations, filing requirements, and audit risks. Partnering with a qualified VAT registration consultant in UAE ensures that your business meets all compliance obligations.
VAT (Value Added Tax) was introduced in the UAE on January 1, 2018, as part of the government's efforts to diversify the economy and reduce dependency on oil revenues. Businesses must register for VAT if their taxable supplies and imports exceed AED 375,000 per year. Voluntary registration is also available for businesses with supplies and imports exceeding AED 187,500 per year.
The UAE VAT framework is structured into three main categories: Standard-Rated, Zero-Rated, and Exempt Supplies. Understanding these classifications is essential for compliance and efficient tax planning.
The standard VAT rate of 5% applies to most goods and services supplied within the UAE. Businesses charging this rate are required to collect VAT and remit it to the government. This includes:
Zero-rated supplies are subject to VAT at a 0% rate. Businesses making such supplies can still reclaim the input VAT paid on their purchases. In the UAE, these include:
Exempt supplies are not subject to VAT; however, unlike zero-rated supplies, businesses involved in these transactions cannot recover the input VAT paid on related expenses. In the UAE, the following categories are considered exempt from VAT:
Registering for VAT in the UAE requires more than just submitting forms; it demands a clear understanding of legal obligations, turnover thresholds, and accurate documentation. Errors or delays can lead to penalties and compliance issues.
ICB, your expert VAT registration consultant in UAE, ensures that your registration process is smooth, error-free, and fully compliant with the UAE Federal Tax Authority (FTA) regulations. We assist in determining your eligibility, gathering the necessary documents, and completing the submission process, saving you time, effort, and potential legal complications.
In the UAE, both local and international businesses are required to register for VAT within 30 days once their taxable supplies and imports exceed the mandatory threshold of AED 375,000. However, businesses that fall below this threshold may still opt for voluntary VAT registration.
To qualify for VAT registration in Dubai, businesses must meet the following criteria:
Businesses must register for VAT if their taxable supplies match or surpass the AED 375,000 threshold. Taxable supplies encompass goods and services subject to VAT, which can either be charged at the standard rate of 5% or be zero-rated. Below are the key criteria for mandatory VAT registration:
VAT registration is voluntary for businesses with taxable supplies or expenses between AED 187,500 and AED 375,000. For startups and smaller companies aiming to grow, voluntary registration offers a major advantage: the ability to claim input VAT on expenses. Businesses below these thresholds are not required to register but can still choose voluntary registration to benefit from input tax credits.
As per the latest FTA clarification, simply meeting the threshold is not enough. Businesses, whether natural or legal persons, must also provide clear evidence that they are actively conducting business in the UAE, or have a genuine intention to make taxable supplies (either within the UAE or outside the country, provided such supplies would be taxable if made locally).
Voluntary registration is ideal for:
Other Eligible Persons:
VAT registration is a legal requirement in the UAE for businesses that meet specific turnover thresholds. Overseen by the Federal Tax Authority (FTA), the entire process is completed online through the EmaraTax portal. Whether you're a local company or an international business operating in Dubai, understanding how to register for VAT with the assistance of an expert VAT registration consultant in UAE makes compliance smoother.
Before beginning your VAT registration application on the EmaraTax portal, ensure you have an experienced VAT registration consultant in UAE to assist you, and that the following documents and details are ready in the correct format:
As per the recent clarification by the Federal Tax Authority (FTA), natural or legal persons applying for voluntary VAT registration must provide evidence demonstrating that they conduct business in the UAE and intend to make either taxable supplies or supplies outside the UAE that would be taxable if made within the UAE.
Below are the templates that you may need to complete and upload as part of your online application:
Certain goods and services in the UAE are exempt from Value Added Tax (VAT). These exemptions aim to support essential sectors and reduce the financial burden on consumers. Below are the key categories:
Includes medical treatments, doctor fees, and hospital charges.
Covers tuition fees and related services provided by educational institutions.
Sales and leases of residential properties are exempt, while commercial properties are taxable.
Public transportation, such as taxis, buses, and metro services, is VAT-exempt.
Basic food products like rice, bread, milk, and meat are exempt (luxury or processed foods are not).
Certain medicines, medical devices, and related products are VAT-exempt.
Activities conducted by registered charities, including donations and relief efforts, are exempt.
Worship-related services provided by mosques, churches, and temples are exempt (excluding religious books and accessories).
Public services such as municipality fees, parking fees, and government agency fees are not subject to VAT.
Bank interest, loans, and related financial services (excluding insurance and reinsurance).
| Type of Registration | Threshold | Time Frame for Evaluation | Registration Deadline |
|---|---|---|---|
| Mandatory Registration | Exceeds AED 375,000 (Taxable supplies/imports) | Past 12 months or expected in the next 30 days | Must register within 30 days of exceeding the threshold |
| Voluntary Registration | Exceeds AED 187,500 (Taxable supplies/imports) | Past 12 months or expected in the next 30 days | Can register voluntarily once the threshold is met |
| Non-resident Registration | No threshold | At any point while conducting taxable activities in the UAE | Must register regardless of turnover |
To remain compliant with VAT regulations in the UAE, businesses must fulfill the following requirements through the FTA portal:
Apply VAT Charges: Levy VAT at the correct rate (5% or 0%) on all applicable goods and services.
Issue VAT-compliant Invoices: Provide invoices that include your Tax Registration Number (TRN), VAT amount, and all required details.
File VAT Returns: Submit your VAT returns to the Federal Tax Authority within the prescribed deadlines.
Pay VAT on Time: Settle any VAT owed to the FTA by the due date to avoid fines or penalties.
Maintain Proper Records: Keep accurate and up-to-date documentation of all VAT transactions, invoices, and payments.
Display TRN Clearly: Ensure your TRN is visible on all official business documents, including invoices and receipts.
Ensure Software Compliance: Update your accounting systems or software to meet VAT reporting and calculation requirements.
Follow FTA Rules: Abide by all VAT-related guidelines, notifications, and updates issued by the Federal Tax Authority.
| Violation | Penalty Amount/Condition |
|---|---|
| Failure to register for VAT within 30 days | AED 10,000 |
| Delayed VAT payment | 2% of unpaid tax immediately after the deadline; 4% after 7 days; 1% daily after 1 month (up to 300% of unpaid tax) |
| Failure to maintain proper records | AED 10,000 (first offense); AED 50,000 (if repeated within 24 months) |
| Failure to issue VAT invoice/credit note | AED 5,000 per missing/incorrect invoice |
| Providing incorrect information to FTA | AED 3,000 (first offense); AED 5,000 (repeat within 24 months) |
| Not displaying VAT-inclusive prices | AED 5,000 |
| Failure to account for tax on imported goods | 50% of undeclared or unpaid tax |
| Failure to submit records in Arabic when requested | AED 20,000 |
| Failure to facilitate the FTA audit | AED 20,000 |
| Failure to notify amendment of tax records | AED 5,000 (first offense); AED 10,000 (repeat) |
| Failure to issue electronic tax invoices/credit notes | AED 2,500 per instance |
| Failure to disclose tax errors before FTA notification or audit | 50% of the error amount, plus 4% monthly on unpaid tax |
Challenge: Many businesses fail to accurately estimate their taxable turnover, leading to premature or delayed VAT registration.
Our Solution: ICB affirms to work closely with your businesses to ensure accurate financial record-keeping, helping you confidently meet the mandatory registration threshold of AED 375,000 for taxable supplies, avoiding unnecessary penalties.
Mistake: Errors such as mismatched trade license details or incomplete documents can delay the registration process.
Our Solution: Our team ensures that your documents are correctly prepared, including trade licenses, financial statements, and Emirates ID copies, to facilitate smooth and efficient VAT registration.
Mistake: Businesses may incorrectly choose the registration type (e.g., voluntary instead of mandatory).
Our Solution: We help businesses assess their eligibility and choose the right VAT registration type, whether mandatory or voluntary, based on their unique turnover and taxable supplies.
Mistake: Declaring an incorrect business activity that doesn't align with your trade license can cause confusion and delay in registration.
Our Solution: We ensure that the business activity declared during VAT registration aligns precisely with your trade license to avoid any discrepancies or compliance issues.
Mistake: Failing to register on time can result in hefty penalties, including fines up to AED 20,000.
Our Solution: Failing to register on time can result in hefty penalties, including fines up to AED 20,000.
Mistake: Businesses often miscalculate taxable supplies, which can result in missed registration deadlines.
Our Solution: Our VAT experts regularly review your financials to ensure accurate reporting and prevent you from missing the VAT registration threshold.
Mistake: Confusion between exempt and zero-rated supplies can lead to errors in VAT filings.
Our Solution: We offer expert consultation to clarify the difference between exempt and zero-rated supplies, ensuring that your VAT filings are accurate and compliant.
Mistake: Businesses may apply the wrong VAT rate, leading to discrepancies in tax filings and compliance issues.
Our Solution: ICB provides clear guidance on the correct VAT rates to apply to your products and services, ensuring complete alignment with UAE tax laws.
Mistake: Failing to update business information with the FTA can result in non-compliance.
Our Solution: At ICB, we make sure your business information is always current with the FTA, so your VAT records remain accurate and up to date.
Mistake: Attempting to manage VAT registration without professional guidance from a VAT registration consultant in UAE can lead to errors and compliance issues.
Our Solution: With ICB, the expert VAT registration consultant in UAE by your side, you can navigate the complexities of VAT registration with ease and ensure full compliance, saving you time and resources.
Incorrect registration can lead to costly delays and penalties. ICB, the VAT registration consultant in UAE ensures you’re registered under the correct VAT category; mandatory or voluntary, based on your business turnover, taxable supplies, and operational structure.
The UAE imposes strict penalties for non-compliance. With ICB, the VAT registration consultant in UAE by your side, you’re protected against filing errors, missed deadlines, and incorrect VAT calculations. We help you stay compliant and penalty-free.
Every business is unique. Our VAT registration consultant in UAE analyzes your industry, transaction patterns, and structure to design a compliance roadmap tailored to your specific VAT obligations from invoicing to record-keeping.
VAT laws are subject to updates and clarifications. ICB stays ahead of every change from the FTA, so you’re never left behind. Our VAT registration consultant in UAE ensures your processes evolve with the law.
VAT management takes time. Our structured processes reduce administrative burden and free your team.
ICB handles everything from return preparation to submission, ensuring accuracy in taxable input/output, zero-rated items, and deductions. Say goodbye to stress during VAT filing cycles with our VAT registration consultant in UAE.
Whether you’re a startup registering for the first time or an enterprise optimizing VAT efficiency, ICB delivers ongoing support as your business grows and scales.
Expert guidance on VAT matters tailored to your industry, ensuring sound decisions and long-term compliance.
Timely and accurate filing of VAT returns in accordance with FTA deadlines and regulations.
End-to-end assistance with VAT registration, whether mandatory or voluntary, to ensure a smooth and error-free process.
Professional bookkeeping and VAT-compliant accounting that simplifies record-keeping and reporting.
Analyze how VAT affects your pricing, margins, and operations to make informed adjustments and strategic decisions.
internal audits and staff training programs to keep your business aligned with current VAT laws and procedures.
Assistance in identifying and applying for eligible VAT refunds, including documentation and follow-ups with the FTA.
VAT in the UAE can get complicated, but you don’t have to figure it out alone. At ICB, our VAT registration consultant in UAE makes the process simple, clear, and tailored to your business needs. From registration and filing to ongoing compliance, we ensure you're fully supported every step of the way through:
Our team of VAT specialists has in-depth knowledge of UAE tax laws and industry-specific challenges. We provide accurate, up-to-date advice that aligns with your business operations.
At ICB, we prioritize clear communication and dedicated support. Our consultants operate like an extension of your team, offering timely insights and hands-on assistance when you need it most.
From startups to established enterprises, we’ve helped countless businesses across the UAE achieve efficient, penalty-free VAT compliance with tangible results.
With our ongoing support, you can be rest assured that your business remains compliant with VAT regulations.
Contact ICB Tax today. Our dedicated team is here to help you navigate the complexities of VAT registration and ensure your business remains compliant.
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