VAT Registration Process & Compliance
Registration Process
Step 1: Create EmaraTax Account - Access the FTA EmaraTax portal. Register with UAE PASS or email. Complete entity profile.
Step 2: Submit VAT Registration Application - Select VAT Registration from dashboard. Complete the online application form. Provide trade license and incorporation documents. Provide financial information and projected turnover. Provide details of authorized signatory and contact person.
Step 3: Upload Supporting Documents - Trade license copy, passport and visa copies of owners/managers, bank account details, lease agreement (Ejari or equivalent), projected financial statements (for new businesses), bank reference letter.
Step 4: Submit and Track Application - Submit the application. Track status via EmaraTax. FTA reviews within 5-20 business days. Additional information may be requested.
Step 5: Receive TRN - FTA issues 15-digit Tax Registration Number (TRN). TRN certificate available for download. Must display TRN on all tax invoices. Must include TRN on official correspondence.
VAT Compliance Requirements
1. Tax Invoices: Must issue tax invoices for all taxable supplies. Must contain all mandatory fields per Article 67. Simplified invoices for retail (Article 68). Must show TRN.
2. VAT Returns: Filed quarterly (most businesses). Some businesses may file monthly. Due by the 28th of the month following the tax period. Filed via EmaraTax portal.
3. VAT Payment: Pay net VAT due with return filing. Payment deadline same as return deadline (28th). Electronic payment via EmaraTax. Late payment penalty: 2% immediately, 4% after 7 days, 1% daily after 30 days.
4. Record Keeping: Maintain all tax invoices (issued and received). Maintain accounting records. Retain for 5 years from end of tax period. Must be available for FTA audit.
VAT Rates
- 5% (Standard Rate): Most goods and services
- 0% (Zero-Rated): Exports, international transport, certain food items, healthcare, education
- Exempt: Financial services, residential property, bare land, certain passenger transport
Reverse Charge Mechanism
Applies to imports of services from outside the UAE. Recipient accounts for VAT as both input and output. No actual payment required (offsets). Must be reported in VAT return.
Input VAT Recovery
Recoverable: VAT paid on business expenses, VAT on purchases related to taxable supplies, VAT on imports for business use.
Non-Recoverable: VAT on expenses related to exempt supplies, VAT on entertainment (unless business purpose), VAT on motor vehicles (if for personal use).
Voluntary Disclosure
Must be submitted if error discovered. Within 20 business days of discovery. If error increases tax payable or exceeds AED 10,000. Penalty: 5% of error amount.
VAT Penalties
Late registration: AED 10,000. Late return filing: AED 1,000 (first), AED 2,000 (repeated). Late payment: 2% + 4% + 1% daily. Failure to issue tax invoice: AED 5,000 per invoice. Voluntary disclosure: 5% of error. Tax evasion: Up to 500% of tax due + AED 50,000 fine.