Understanding VAT
What is VAT Return Filing?
Value Added Tax (VAT) was introduced in the UAE on January 1, 2018 at a standard rate of 5%. VAT registration is mandatory for businesses meeting revenue thresholds set by the Federal Tax Authority (FTA).
Tax Registration Number
15-digit TRN required on all invoices
5% Standard Rate
One of the lowest VAT rates globally
Quarterly Filing
Returns due within 28 days
Input Tax Recovery
Claim VAT on business expenses
FTA Requirements
VAT Return Filing Thresholds
Current Thresholds (2024)
Mandatory Registration
AED 375,000
Annual taxable supplies
Voluntary Registration
AED 187,500
Supplies or expenses
Important: Register within 30 days of exceeding threshold. Late penalty: AED 20,000.
Our Process
Registration Process
1
Consultation
Same Day
2
Documents
1-2 Days
3
Preparation
1 Day
4
Submission
Same Day
5
TRN Issued
2-3 Days
Checklist
Documents Required
Trade License
Emirates ID - All owners
Passport - All owners
MOA/AOA
Bank Details - IBAN
Financial Records
Important
VAT Penalties
| Violation | Penalty |
|---|---|
| Failure to register on time | AED 20,000 |
| Late return filing (1st) | AED 1,000 |
| Late return filing (repeat) | AED 2,000 |
| Missing TRN on invoices | AED 2,500/invoice |
FAQ
Frequently Asked Questions
With Golden Standard Tax, VAT registration takes 3-5 business days once all documents are submitted.
Yes, if annual taxable supplies/expenses exceed AED 187,500. This allows you to reclaim input VAT.
Yes, free zone companies must register if they meet threshold requirements.