UAE residents are, under Article 13, required to register for VAT if the value of goods.
Services supplied exceeds or is expected to exceed the registration threshold of AED 375,000/-in 12 month Period.
A business must register for VAT if their taxable supplies and imports exceed the mandatory registration threshold of AED 375,000.
Furthermore, a business may choose to register for VAT voluntarily if their supplies and imports are less than the mandatory registration threshold, but exceed the voluntary registration threshold of AED 187,500.
Similarly, a business may register voluntarily if their expenses exceed the voluntary registration threshold.
This latter opportunity to register voluntarily is designed to enable start-up businesses with no turnover to register for VAT.
UAE is going to implement VAT with effect from 1st January 2018. All companies/individuals coming under above threshold limit have to register for VAT.
Registration for VAT in the UAE is an online process which is accessible in the Federal Tax Authority’s online portal.
Before proceeding with VAT registration, the applicant should consider various aspects such as a Tax Group or a Standalone etc.