By Moinuddin
December 04, 2025Value Added Tax (VAT) was introduced in the UAE in January 2018 at a standard rate of 5%. For any business operating in Dubai or the UAE, VAT is a mandatory financial obligation governed by the Federal Tax Authority (FTA).
I am Moin Uddin, and I specialize in ensuring your business meets every FTA requirement precisely. From calculating your taxable supplies to securing your Tax Registration Number (TRN) and filing returns on time, we handle the entire process of Vat Registration in Dubai.
Our Focus: Zero penalties, full compliance, and maximizing your eligibility for Input Tax recovery.
It is important to track your turnover accurately, as exceeding the mandatory limit triggers a strict 30-day deadline for registration.
Important Note: Taxable supplies include 5% rated and 0% rated goods and services. They do not include exempt supplies (e.g., bare land, specific financial services).
| Registration Type | Annual Taxable Supplies / Imports (AED) | Legal Requirement |
|---|---|---|
| Mandatory Registration | Exceeding 375,000 | Must register within 30 days of crossing the threshold. Failure results in a minimum AED 10,000 penalty. |
| Voluntary Registration | Exceeding 187,500 | Optional. Allows businesses to claim Input VAT (tax paid on purchases) back from the FTA, improving cash flow. |
If you fail to register within the mandatory 30-day window after exceeding AED 375,000, the FTA imposes a fixed administrative penalty of AED 10,000.
VAT compliance is an ongoing process Vat Registration in Dubai that extends far beyond the initial registration. We provide end-to-end support for your VAT lifecycle.
| Service Focus | What We Deliver for Your Business | Compliance Goal |
|---|---|---|
| VAT Registration | Complete FTA application management, document preparation, and securing your official Tax Registration Number (TRN). | Avoid the AED 10,000 late registration penalty. |
| Taxable Turnover Calculation | Expert assessment of past and projected turnover to accurately determine mandatory/voluntary status. | Ensure accurate timing and threshold adherence. |
| VAT Group Registration | Structuring and applying for a single VAT Group TRN for related entities to simplify filing and eliminate VAT on internal (intra-group) transactions. | Simplify compliance and improve inter-company cash flow. |
| VAT Return Filing (Form 201) | Quarterly preparation and submission of the VAT Return to the FTA, managing Input VAT vs. Output VAT figures accurately. | Ensure accurate reporting within the 28-day deadline and minimize audit risk. |
| VAT De-registration | Managing the application to cancel your VAT registration when your turnover falls below the voluntary threshold for the required period. | Avoid penalties for failure to de-register when mandatory. |
Once registered, compliance shifts to timely filing and payment.
Filing Schedule:
VAT Returns (Form 201) are typically due on a quarterly basis (or monthly, as specified by the FTA). The deadline for submission and payment is 28 days after the end of the tax period.
| Violation | FTA Penalty Details |
|---|---|
| Late VAT Return Submission | AED 1,000 for the first instance; increases to AED 2,000 if repeated within 24 months. |
| Late VAT Payment | Penalties are compounding and capped at 300% of the unpaid tax:
|
| Failure to Keep Proper Records | AED 10,000 for the first offence; increases to AED 50,000 for repeat offences within 24 months. |
Don’t let mandatory compliance deadlines expose your business to severe penalties. We ensure your VAT registration, tax filing, and ongoing compliance are handled by an expert FTA-savvy tax agent.
Contact me now we are audit firm in dubai for a FREE VAT eligibility assessment and registration quote!
