HLB HAMT has a dedicated desk comprising of experienced tax consultants, for assisting new and existing registrants to fulfil UAE VAT administrative formalities related to VAT Registration, Deregistration and Group Amendments in UAE.

1. VAT REGISTRATION
FORMALITIES IN UAE
https://hlbhamt.com/vat-registration-formalities-dubai-uae/

2. • HLB HAMT has a dedicated desk comprising of experienced tax consultants, for
assisting new and existing registrants to fulfil UAE VAT administrative formalities
related to VAT Registration, Deregistration and Group Amendments in UAE.
• Based on the business structure and requirement, the tax professional shall guide
the registrant with the requirements of documents and information for effective
submission of registration, deregistration and group amendment application to
obtain timely approval. The tax team follows up with FTA officers regularly to
identify any further requirements of information and expedite the administrative
process.

3. VAT REGISTRATION IN UAE
• VAT is a transaction-based tax which is imposed on most supplies of goods and
services. However, the obligation to charge VAT only extends to persons who are
registered for VAT or are required to register for VAT in UAE. These persons are
known as “taxable persons”. A taxable person who is registered for VAT receives a
tax registration number (‘TRN’) and is referred to as a “registrant”.

4. WHO SHOULD APPLY FOR VAT
REGISTRATION IN UAE?
If a person is a resident in the UAE or any other GCC state that has implemented
VAT in accordance with the Common VAT Agreement of the States of the Gulf
Cooperation Council, the person is required to register for VAT mandatorily if:
• The total value of their taxable supplies and imports made within the UAE exceeds
the Mandatory Registration Threshold of AED 375,000 over the previous 12-month
period; or
• The person anticipates that the total value of their taxable supplies or imports will
exceed AED 375,000 in the next 30 days.
• If the VAT Registration is not obtained on time under Mandatory registration, then
a penalty of AED 10,000 will be levied on the E-services portal upon approval of
registration.

5. WHO CAN APPLY FOR VAT
REGISTRATION VOLUNTARILY?
• A person can voluntarily register for VAT if:
• At the end of any month, the total value of the person’s taxable supplies and
imports, or their expenses which were subject to VAT, in the previous 12 months
exceeds the Voluntary Registration Threshold of AED 187,500; or
• The total value of the person’s taxable supplies and imports, or their expenses
which are subject to VAT, in the next 30 days is expected to exceed the Voluntary
Registration Threshold of AED 187,500.

6. VAT DEREGISTRATION IN UAE
• The taxable person ceases making taxable supplies; or
• The value of the taxable person’s taxable supplies in the preceding 2 calendar
months is less than the Voluntary Registration Threshold i.e. AED 187,500.
• In case of failure by the registrant to submit a deregistration application within the
stipulated time, applicable administrative penalty shall be AED 1,000 monthly
penalty upto a maximum of AED 10,000.
• HLB HAMT has a specialized team who can assist in timely deregistration by
guiding through the requisite process and relevant documentation required.

7. VAT GROUPING AND SUBSEQUENT
AMENDMENTS IN UAE
• Companies in a group corporate structure can form a tax group if the below
criteria are fulfilled:
• VAT Group can be formed and registered where:
• One prospective member alone satisfies the relevant registration requirements; or
• If taken together, the total value of supplies made by or expenses (which are
subject to VAT), incurred by the prospective members satisfy the relevant
registration requirements.

8. SUBSEQUENT AMENDMENTS TO
TAX GROUP
• Members can be added to the group
• Existing members in the group can be removed from the tax group
• Representative member of the tax group can be changed
• A tax group can be disbanded
The above activities require a diligent scrutiny and exercise due care while
understanding the client requirements and UAE VAT law provisions. HLB HAMT has
successfully provided VAT Registration, undertaken Deregistration & made group
amendments for clients in Dubai, Abu Dhabi, Sharjah, Fujairah, Ras Al Khaimah &
Umm AL Quwain.

9. CONTACT US
HLB HAMT
Level 18, City Tower-2,
Sheikh Zayed Road
PO Box 32665
Dubai – United Arab Emirates. Tel: +971 4 327 7775
E-mail: dubai@hlbhamt.com
www.hlbhamt.com