Amount of taxable turnover is the criteria to determine whether to register for VAT or not:

• COMPLUSORY REGISTRATION
  If taxable turnover of your business is more than AED 375,000 in the previous 12 months or you expect (based on documentary evidence) that your turnover will be more than AED 375,000 in next 30 days, then you must make a VAT registration application within 30 Days from the date when the turnover exceeded AED 375,000.
• OPTIONAL REGISTRATION
  If you are not mandatorily required to register as mentioned above, you will only become eligible to make a VAT Registration application if either one of your taxable turnover or taxable expenses were more than AED 187,500 in the last 12 Months; or You expect (based on documentary evidence) that your taxable turnover or expenses will be more than AED 187,500 in the next 30 days.
• NO REGISTRATION
  If your taxable turnover in the previous 12 months is less than AED 187,500 then you are neither mandatorily required to make an application for VAT registration nor you are eligible to make an application. Any application made will be rejected by the Federal Tax Authority.

Any foreign business, which does not have presence in UAE, shall make an application for VAT Registration if it makes supplies of Goods or Services to an end consumer or an unregistered business (who cannot account for due tax on behalf of foreign business since its unregistered). This is to be noted that there is no minimum amount of sales required to be completed to become eligible of making a VAT Registration application. The Non Resident business shall immediately apply for VAT Registration on making any amount of such sales.

EXAMPLE
ABC Co. Pvt. Ltd. of India want to make sales in UAE using an e-commerce platform in the UAE. It is pretty evident that since the sales are planned to be made to end consumers, there is no one in the UAE who will account for VAT in the UAE on behalf of Non Resident Business. Hence, It becomes mandatory for Non-Resident business to make an application within 30 days of making its first sales in UAE, irrespective of amount of sales.

Two or more persons conducting Businesses may apply for Tax Registration as a Tax Group if all of the following conditions are met:
1. Each shall have a Place of Residence in the UAE.
2. The relevant persons shall be Related Parties.
3. One or more persons conducting business in a partnership shall control the others.

The VAT Law has provided an option for persons conducting business to apply for registration as a tax group. It is relevant to note that only legal persons are entitled to take registration as tax group. Natural person cannot become member of a Tax group. To satisfy the 2nd Condition of Related Parties please get in touch with us and we’ll help you to determine.

The Federal Tax Authority of UAE can take up to 20 business days to give their first response on the VAT registration application. The turnaround time to get the approval depends entirely on how legally accurate your VAT Registration application is. We at Darji Accounting ensure that VAT Registration application of client is 100% accurate at the time of applying so turnaround time can be reduced to minimum.

Different category of applicants needs different document to register for VAT. Please contact us at so we can understand your business and can advise on the list of documents and information required for VAT Registration.