VAT Registration in UAE

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Overview of VAT Registration in UAE

VAT Registration in UAE

All member countries in the GCC signed a unified VAT agreement, enabling the implementation of a formal VAT system across the GCC.

What is Value Added Tax (VAT)

Value Added Tax (VAT) is a tax levied at each point in the supply chain, for either a product or a service.
It is a consumption tax, as it is borne finally by the end consumer.

What is the VAT rate in UAE?

The rate of VAT in the UAE is 0% and 5%.

Governing Law

The Federal decree-law no.8 of 2017 on VAT provides the guidance for tax rates, scope of transactions, the supply of goods and services. The law also defines deregistration, mandatory tax registration, tax group registration exceptions, voluntary registration, tax registration & VAT Registration in Dubai UAE of government bodies. Further, it will also form the basis for future VAT legislation UAE.

When to apply for VAT Registration Dubai, UAE?

Application for Tax Registration Number (TRN) shall be taken in 2 scenarios:

  1. Mandatory Registration
    When any business engaged in the supply of taxable goods or services, must register for VAT mandatorily when the turnover is AED 375,000 in the past 12 months or the threshold will be crossed in the next 30 days.
  2. Voluntary Registration in Dubai
    When any business engaged in the supply of taxable goods or services, may register for VAT voluntarily if the turnover is more than AED 187,500 or if the business expects to cross said limit within the next 30 days.
Disclaimer: The tax rate is subject to change as per the Government policy

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