VAT Registration in UAE
Who Needs to Register for VAT?
VAT registration in UAE is a legal requirement for businesses that meet the Federal Tax Authority (FTA) threshold. Proper VAT registration ensures full compliance with UAE tax regulations, enables input VAT recovery, and allows your business to operate without the risk of penalties or reporting issues.
At Altus Citadel Services, we provide professional VAT registration in the UAE for both mainland and free zone companies. Our team manages the entire process, including eligibility assessment, documentation preparation, FTA submission, and ongoing compliance support, ensuring your business is registered correctly and efficiently from the start.
You must register for VAT if:
- Your taxable turnover exceeded AED 375,000 over the past 12 months.
- You expect your turnover to exceed AED 375,000 within the next 30 days.
- Your turnover or expenses are above AED 187,500, making you eligible for voluntary registration.
- You are a new company projecting growth above the registration threshold.
VAT Rates & Key Facts
- Standard Rate: 5% is applied to most goods and services, including commercial properties.
- Approval typically takes 2 to 3 weeks.
- Late registration penalties start from AED 10,000.
- Voluntary threshold: AED 187,500.
- Mandatory threshold: AED 375,000.
- Zero-rated supplies: 0% (exports, certain healthcare, education, international transport)
- Filing Frequency: Quarterly (most businesses) or Monthly (larger businesses as assigned by FTA)
- Businesses can recover VAT paid on eligible business expenses
- Businesses must maintain records for at least 5 years (invoices, ledgers, VAT Returns, etc.)
- Not all Free Zone transactions are VAT-free. Free Zone VAT Treatment depends on: “Designated Free Zone” status & Type of transaction (goods vs services)
How to Register for VAT?
Seamless process managed by our expert team.
Initial Consultation
We assess your business structure, turnover, and VAT obligations to determine the correct registration approach.
Document Collection
You provide the necessary company and shareholder documents, which we review to ensure they meet FTA requirements.
Registration Application
We prepare and submit your VAT registration application through the FTA portal, ensuring all details are accurate and complete.
Issuance of VAT Registration Certificate
Once approved, the FTA issues your VAT Registration Certificate, confirming your business is officially registered for VAT compliance in the UAE.
Frequently Asked Questions (FAQs)
How long does the VAT registration process take?
Approval from the FTA typically takes 2 to 3 weeks from the date of application submission.
What are the penalties for late VAT registration?
Late registration penalties start from AED 10,000, as enforced by the FTA.
Can I register voluntarily if my turnover is below the mandatory threshold?
Yes. Businesses with taxable turnover or expenses above AED 187,500 can opt for voluntary VAT registration.
Is VAT registration a one-time process?
Yes, VAT registration is generally a one-time process, but you must ensure that your registration details remain accurate and up-to-date with the FTA.
Can Altus Citadel represent my business in VAT matters with the FTA?
Absolutely. As an FTA-approved tax agent, we can fully represent your business for all VAT compliance matters, including registration, filing, and audits.
Need a Custom Quote?
Every business is unique. Contact us for a detailed breakdown of start-up costs tailored to your specific activities and scaling requirements.