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If taxable supplies made by a taxable person in UAE exceeds the mandatory registration threshold limit over the previous 12 months, will register by making:

  • The application for registration will be made within 30 days from the date of crossing threshold limit with the FTA
  • The VAT registration will take effect from the following month from the month in which the person is required to register.

If a person anticipates the value of taxable supplies will exceed the Mandatory Registration Threshold in the next 30 days

  • Application to the FTA will be made within 30 days from the date on which expectation arises
  • The VAT registration will take effect from the day on which the person had reasonable grounds for believing that they would exceed the Mandatory Registration Threshold.

Registration for non – resident:

If the person is not a resident of the GCC Implementing States and they are required to register for VAT based on the crossing of mandatory threshold limit or in anticipation of crossing mandatory threshold limit

  • Date of registration will be effective from the date on which the person started making supplies in the UAE.
Note:
  • In all of the above situations, the FTA may agree that the registration is effective from an earlier date.
  • 30 Days is not same as one month.
Example

On 1 June, a person exceeds the Mandatory Registration Threshold for the prior 12month period. The person must inform the FTA that they are required to be registered by 30 June. The VAT registration will take effect from 1 July.

Example

A person enters into an agreement on 15 August to supply taxable goods worth AED 400,000 to a customer on 1 September. The person must notify the FTA that they are required to be registered by 13 September. The VAT registration will take effect on 15 August.

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The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn't constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn't accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information's provided herein above.

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