Earning over AED 375,000 a year? VAT registration is mandatory. CorpWise registers you with the Federal Tax Authority, files your returns on time, and keeps you compliant so you never face penalties for missed deadlines or incorrect filings.
Value Added Tax (VAT) is a 5% tax applied to most goods and services in the UAE. It was introduced in January 2018 and is administered by the Federal Tax Authority (FTA).
Any business with taxable supplies exceeding AED 375,000 per year must register for VAT. Businesses with taxable supplies between AED 187,500 and AED 375,000 may register voluntarily.
Once registered, your business must charge VAT on applicable sales (output tax), claim back VAT on eligible purchases (input tax), file periodic returns with the FTA, and pay any net VAT owed by the filing deadline. Getting any of these steps wrong results in penalties that accumulate quickly.
VAT registration is not optional once you cross the threshold. Understanding your obligations early prevents penalties, incorrect invoicing, and cash flow surprises.
If your annual taxable supplies (or expected supplies in the next 30 days) exceed AED 375,000, VAT registration is mandatory. Operating without it means every invoice you issue is non-compliant.
If your revenue is between AED 187,500 and AED 375,000, voluntary registration lets you reclaim input VAT on purchases and positions you professionally with clients and suppliers.
Some goods and services are zero-rated (0% VAT but still reportable) or exempt. Understanding which category your activities fall into determines how you file and what you can reclaim.
If you are registered but have missed returns, filed incorrectly, or received an FTA penalty notice, corrective action is needed immediately. Penalties compound, and the FTA does not waive them without formal reconsideration.
We prepare and submit your VAT registration application to the Federal Tax Authority, ensuring all details, documents, and classifications are correct from the start.
Getting VAT right from the start protects your cash flow, your FTA record, and your business reputation.
Late registration, late filing, and incorrect returns all trigger automatic penalties. Professional handling ensures every deadline is met and every number is accurate.
Many businesses leave money on the table by not claiming eligible input VAT. Proper tracking and categorisation ensures you recover everything you are entitled to.
Knowing exactly how much VAT you owe (or are owed) at any point in the period prevents end-of-quarter surprises and helps you manage working capital.
FTA has specific requirements for tax invoices. Non-compliant invoices cannot be used for input tax claims by your customers, which damages business relationships.
If the FTA audits your VAT, having organised, reconciled records means the process is quick and uneventful rather than disruptive and expensive.
VAT compliance is essential but repetitive. Outsourcing it to specialists frees your time for activities that actually generate revenue.
We register you with the FTA, file your returns, and keep you compliant, every quarter, without exception.
We prepare your FTA application with accurate business classifications, correct activity codes, and complete documentation. No back-and-forth with the portal, no rejected applications.
Every VAT return is prepared from reconciled records and submitted before the FTA deadline. You never pay a late filing penalty because we missed a date.
Because CorpWise also offers bookkeeping and accounting, your VAT data comes from properly maintained records, not a last-minute scramble. The books feed the returns, and both are accurate.
From FTA registration to your first return, here is what happens.
We assess whether your business meets the mandatory or voluntary threshold, prepare the application, and register you with the FTA. Your Tax Registration Number (TRN) is issued.
We set up your VAT tracking, review your invoice templates for FTA compliance, and establish the reconciliation process that feeds your returns.
Each period, we reconcile your input and output VAT, prepare the return, and file with the FTA before the deadline. You review and approve before submission.
Between filings, we monitor regulatory changes, manage voluntary disclosures if corrections are needed, and keep your records audit-ready at all times.
Whether you are registering for the first time or fixing a compliance gap, these are the questions our clients ask most.
VAT registration is mandatory when your taxable supplies exceed AED 375,000 in the previous 12 months, or when you expect them to exceed that amount in the next 30 days. Registration must be completed within 30 days of crossing the threshold.
The standard VAT rate is 5%. Some supplies are zero-rated (0% but still reportable, such as certain exports and healthcare), and some are exempt (not subject to VAT and not reportable, such as certain financial services and residential property).
Most businesses file quarterly, but the FTA may assign monthly filing for larger businesses. Your filing frequency is confirmed during registration. Each return must be filed, and any VAT owed paid, by the 28th day of the month following the end of the tax period.
Late filing triggers an automatic penalty that increases for repeat offences. Late payment of VAT owed incurs a separate daily penalty. Both are enforced automatically by the FTA system with no grace period. The most effective protection is professional filing that never misses a deadline.
Yes. VAT paid on eligible business expenses (input tax) can be offset against VAT collected on sales (output tax). If your input tax exceeds your output tax in a period, you can apply for a refund from the FTA. Proper categorisation is essential, as not all purchases qualify.
Yes. We handle the initial FTA registration, TRN issuance, and then manage your periodic return filing on an ongoing basis. We also provide support for voluntary disclosures, invoice compliance, and FTA audit preparation. The service can be combined with our bookkeeping package for end-to-end financial management.
VAT registration is mandatory, but penalties are avoidable. CorpWise handles your FTA registration, return filing, and ongoing compliance so you can focus on running your business, not managing tax admin.
