Required Documents
(As per FTA guidelines)
• Trade License
• Passport / Emirates ID of authorized signatory
• Proof of authorization
• Contact details
• Bank account validation letter
Common additional requirements:
• MOA/AOA
• Turnover declaration on company letterhead
• Customs import/export records (if applicable)
Client Value & Regulatory Importance
In the UAE, VAT registration is not optional once a business reaches the statutory threshold. The law requires companies with taxable supplies and imports of AED 375,000 or more per year to register for VAT. There is also a voluntary registration option available for businesses with taxable turnover or expenses exceeding AED 187,500 annually, which can be beneficial for start-ups or growing companies that want to recover input VAT early.
Registration is important because it allows businesses to charge VAT on their supplies legally, reclaim VAT paid on eligible expenses, and operate without the risk of penalties. Remaining outside the system when you are required to register can result in fines and reputational damage, especially if discovered during an audit.
On the other hand, deregistration is just as significant. If a business no longer meets the AED 375,000 threshold, or if it ceases operations, deregistration prevents the company from having to file unnecessary returns and carry the administrative burden of compliance. Knowing when to register or deregister ensures that businesses are aligned with FTA requirements, while also avoiding extra costs and obligations that no longer apply.
Case Study
One of my clients first approached me to register for VAT, even though his sales were still below the mandatory threshold. He had two reasons — he wanted to reclaim input VAT on his expenses and also needed a VAT registration number to secure a large contract. Based on his request, I completed the registration and ensured everything was set up properly.
However, after four quarters it became clear that his business had not crossed the registration limit. At that point, I advised him that continuing under VAT while staying below the threshold would expose him to unnecessary risks. Specifically, each delayed deregistration could result in a monthly fine of AED 1,000. With his approval, I handled the deregistration process and explained the long-term benefits of stepping out of the system until his revenues justified registration again.
By guiding him through both the registration and deregistration phases, I not only fulfilled his immediate need but also protected him from avoidable fines. The client appreciated the clarity, as he had initially assumed that staying registered was always the safer option.
Required Documents
• Sales and purchase invoices
• Expense records
• Customs import/export declarations
• Accounting records
Client Value & Regulatory Importance
VAT return filing is not only a compliance requirement but also a crucial part of managing business finances effectively. Each return gives the Federal Tax Authority a snapshot of a company’s taxable supplies, expenses, and recoverable input VAT. If the figures are accurate, businesses are able to reclaim the right amount of VAT on their costs, which directly improves cash flow and reduces the overall tax burden.
Timely submissions are equally important. Returns are usually filed on a quarterly basis (though some businesses are placed on monthly schedules by the FTA), and missing the deadline can lead to administrative fines and additional scrutiny. Beyond avoiding financial consequences, submitting on time also shows reliability to both regulators and business partners.
For SMEs in particular, well-prepared VAT returns bring clarity to financial records, highlight trends in expenses and sales, and prevent errors that could build up over time. This transforms VAT filing from being a regulatory task into a valuable management tool for making smarter business decisions.
Case Study
One client who registered for VAT through us was not fully aware of how strict the filing deadlines are. After his registration was approved, we explained that he needed to file on a quarterly basis, submit before each deadline, and that any delay could attract late filing penalties along with an additional 2% liability on outstanding amounts. Like many SMEs, he underestimated the importance of these timelines and put the task aside while focusing on daily business operations.
We followed up several times, but he remained unavailable. Finally, just a day before the deadline, we managed to reach him, and he arrived with a large pile of documents that still needed organizing and reconciliation. Despite the last-minute pressure, our team worked through the workload and successfully submitted the return before the cut-off.
Because of the urgency and additional hours involved, we charged slightly higher than our usual service fee — but only after confirming successful filing. The client was relieved and thankful, not only because he avoided fines but also because we ensured his records were accurate and compliant. In the end, he valued our transparency and trusted us more, knowing we would only charge upon successful completion of the filing.
Required Documents
• Past VAT returns
• Sales and purchase ledgers
• Expense classifications
Client Value & Regulatory Importance
Regular reviews highlight errors and recover unclaimed VAT. They also protect businesses during future inspections.
Case Study
A manufacturing client recovered AED 50,000 after we identified input VAT that had been overlooked.
Required Documents
• Contracts and agreements
• Customs documents
• Project financial data
Client Value & Regulatory Importance
Complex or cross-border transactions require accurate VAT treatment. Proper handling reduces exposure to disputes and unnecessary costs.
Case Study
We advised a construction company on residential projects. Correct classification allowed them to apply zero-rating and improve liquidity.
Required Documents
• Previous VAT returns
• Corrected calculations
• Supporting documentation
Client Value & Regulatory Importance
Voluntary disclosures allow businesses to correct mistakes proactively. This builds trust and reduces financial risk.
Case Study
A trading company had reported export sales as local. We filed a disclosure, which enabled them to recover AED 70,000.
Required Documents
• VAT returns
• Expense and purchase records
• Customs documents (if relevant)
Client Value & Regulatory Importance
Refunds improve working capital and reduce cash flow pressure. Proper submissions ensure claims are processed without delays.
Case Study
We helped a newly built hotel recover AED 200,000 in construction-related VAT before its official launch.