What is the Deadline for VAT registration in UAE?

Value Added Tax (VAT) registration is necessary for UAE businesses to ensure compliance with VAT laws and regulations. Registering before the deadlines especially helps you to avoid penalties and legal issues. Businesses exceeding AED 375,000 in taxable supplies or imports must register for VAT within 30 days in UAE. Explore more details regarding deadlines for VAT registration UAE for the different registration types in this article. 

Register for VAT in UAE efficiently with Filings.ae!!

VAT Registration Deadlines in UAE

Primarily, the VAT registration deadlines in UAE are based on the turnover of the businesses. FTA doesn't set any specified date but has fixed a certain period for VAT registration based on the threshold limit. 

Businesses in the UAE must register for VAT under two scenarios. Mandatory registration is required if the total value of taxable supplies and imports exceeds AED 375,000 over the previous 12 months or is anticipated to exceed this threshold in the next 30 days. On the other hand, voluntary registration is an option if the total value of taxable supplies and imports or taxable expenses exceeds AED 187,500 in the past year or is expected to do so within the next 30 days.

The following table summarises the mandatory and voluntary registration deadlines with thresholds. 

Points to Consider for VAT Registration

Below, we have given the points to remember If you decide to do VAT registration for your business. 

• Make sure to understand the supplies considered for calculating the VAT registration threshold.
• Calculate your turnover and check your VAT registration eligibility, whether you fall into mandatory or voluntary registration. 
• If the turnover exceeds AED 375,000, you must complete mandatory registration. And, though your business has not reached the threshold for mandatory registration, you can still opt for voluntary registration. The threshold for voluntary registration is AED 187,500
• If your business making only zero-rate supplies, you can seek exemptions from mandatory VAT registration. You must complete the VAT registration and choose the relevant option to get an exemption from VAT. 
• Ensure you prepare all the documents like trade license, financial statements, bank details, and authorized signatory information. 
• Enter the accurate information in the application form and complete it within the timeframe specified in the tax law to avoid administrative penalties for late registration. 

Penalty for failing to do VAT registration

You'll face penalties if you fail to do VAT registration when you're mandated to do so. The penalty amount will be around AED 20,000. Additionally, You are required to pay VAT for all taxable supplies and imports made since you should have registered (retroactive to the date you crossed the AED 375,000 threshold). You will not get penalties for voluntary registration, but you will miss the benefits of claiming input tax credit, which can be significant for some businesses.

Learn more: VAT Penalties and Fines in UAE

Conclusion

Understanding registration deadlines is crucial, but completing VAT registration in UAE could be complex. Ensure to register for VAT before the deadline to prevent adverse consequences. Avoid penalties and legal issues by partnering with Filings.ae. We verify your eligibility, guide you through the application, prepare and submit documents, and ensure timely registration - all with ongoing support.

Connect with Filings.ae experts today for a seamless VAT registration!!