VAT Registration In Abu Dhabi- Here Is Everything You Need To Know

VAT Registration In Abu Dhabi- Here Is Everything You Need To Know

VAT registration is a must for residents of UAE. Non-residents may also be required to register for vat if they make supplies in UAE. If they do not register for vat, they may not be able to self-account for the vat due to the reverse charge mechanism. If you are considering getting vat registration in UAE, here are some important things you should know. 

Tax efficient

VAT registration in Abu Dhabi can be beneficial to your business. You must register if your annual taxable turnover is more than AED 375,000. However, you can still voluntarily apply for vat registration even if you do not anticipate an annual turnover above this amount. In any case, you will need to register within 12 months.

You can choose a vat registration firm that will provide you with the right support and assistance. These reputable tax consultancy firms will easily handle your vat registration in Abu Dhabi.


You may be penalized if you have not registered your business with the vat authority in Abu Dhabi. A first-time violation of the vat legislation will result in a fine of AED 1,000, and repeated offenses can result in a penalty of AED 5,000. In addition, businesses must notify the FTA of any changes in their tax records. Lastly, businesses must submit accurate records and substantiating documents to avoid penalties. These documents must be submitted during audits and whenever the FTA requests them.

Penalties for vat registration problems and issues can result in additional financial losses, including additional vat liability. However, the Federal Tax Authority is still learning about the penalties associated with failure to register.


VAT registration is mandatory for companies and individuals in the United Arab Emirates. The process involves filling out a form that includes eight separate sections. A vat registration guide will explain the process and provide all the necessary information for completing the registration form. When applying, you must check that you have read the guide completely before you proceed to fill out the vat registration form.

VAT registration in UAE is essential for businesses with income or supplies of AED 375,000 or more. Businesses that do not meet this threshold can opt for voluntary vat registration. After completing the registration process, businesses will be issued a vat certificate. VAT registration in UAE ensures that businesses comply with tax laws and contribute to the greater welfare of society.