Value Added Tax (VAT), an indirect tax levied on consumption of goods and services has been adopted as a system by almost 160 countries globally. This tax serves as another segment for revenue generation for the higher authority. The Middle-East country UAE is one of the most dynamic countries of the world. The Emirates have got several zones that have been considered as a business free-tax zone that became the center of investment for foreign investors. If your business is registered under VAT law, it signifies that it holds a recognition in the eyes of the government. Having realized this, the GCC countries have recently registered themselves under VAT law and implemented it by 1st Jan 2018 with 5% as the VAT rate.

If you are a business owner in UAE or planning to establish your business roots in the Emirates, be it a small, medium or a large business, you need to get your business registered under VAT law. Before moving to the process let’s have a look at the entities who should register for VAT, the importance of VAT followed by the registration process and other essential documents and information.

Who Can Register for VAT in UAE?

Registration of business entities for VAT depends on the income generated by the business. The slab for entities who will become responsible for VAT Registration are as follows:

Businesses having taxable supplies and imports above AED 375,000 Mandated to apply for VAT registration
Businesses having taxable supplies and imports between AED 187,500 and 375,000 Can voluntarily apply for VAT registration
Businesses having taxable supplies and imports less than AED 187,500 Not required to apply for VAT registration

Importance of VAT Registration in UAE

Most important reasons that define why VAT registration is considered as an essential part are:

  • It boosts the business profile
  • It averts financial penalties
  • One may claim for VAT refunds

What is VAT Certificate?

VAT Certificate is a document that serves as an official confirmation that a business entity is registered under the VAT law for the purpose of tax collection at every step of product development. This certificate is the final step after the VAT registration process, and is issued by the Ministry of Finance and has got a unique number for different business entities registered. VAT certification certificate UAE is a proof of business entities being registered under the UAE Tax Law and assures that the business entity is known by the Government of Emirates. Let’s have a look at the contents of the VAT certificate.

Contents of VAT Certificate

A VAT Certificate holds the following essentials:

  • VAT Registration Number
  • Date on which the business entity became VAT registered
  • Issue date
  • Registered address
  • First VAT return period
  • VAT return due date
  • Start and end dates of tax periods

Alriyadah VAT Services

Alriyadah has been a prominent player in dealing with the accounting and taxation services for business entities be it a startup or an established company. Understanding the importance and need for VAT Services for new and existing business entities, we deliver a wide range of VAT services. Few of these are:

  • VAT registration and VAT Group registration
  • VAT compliance and control
  • VAT filing and payment
  • Data record and management
  • Accounting

Why Alriyadah?

Alriyadah, since its inception, has been a prominent player in being a business consultant dealing with accounting, taxation services for business entities at a global level. Our team of VAT experts will you’re your business to file the VAT process and frame it in the most beneficial way to reduce your cash outflow during tax payment stage. To initiate the process, feel free to contact us. We would be happy to assist you and sort your queries.


Who issues Tax Registration Number?

Tax Registration Number (TRN) is issued by the Federal Tax Authority.

What is voluntary VAT registration?

Voluntary VAT registration is a process of VAT registration for business entities whose value of supplies/taxable expenses is between AED 187,500 and 375,000, annually. They have the option to register or not register for VAT.

Al Hind Tower #1405 AlKhan - Sharjah
Al Hind Tower #1405 AlKhan - Sharjah