VAT Registration in Dubai

Common Mistakes to Avoid During VAT Registration in Dubai

The introduction of value-added tax in Dubai in 2018 has made many companies grapple with multiple changes in the business terrain. Companies have had to engage with new and multiple other regulations and compliance requirements. Registration for VAT, a requirement for businesses operating in the emirate, is one such crucial engagement. The VAT registration process is fraught with intricacies and many consequences for making missteps. This article seeks to explore the top mistakes to avoid and to work along VAT registration services in Dubai with the objective of ensuring that businesses better engage with the process and remain compliant with the tax regulations.

Missed VAT Registration Deadline:

One of the most crucial mistakes with VAT registration is missing the registration deadline. Companies are required to register for VAT within 30 days from the end of the month, during which the taxable turnover exceeds the mandatory registration threshold. Failure to do this by the deadline can attract fines as prescribed by the Federal Tax Authority. It is, therefore, important for companies to keep a closer eye on the increase in taxable turnover and start registration early enough once they notice that they are drawing close to the threshold.

Improper Threshold Assessment:

Another mistake is an incorrect assessment of the mandatory registration threshold. Companies are required to conduct a proper assessment of the turnover upon which VAT is calculated. This assessment should include all relevant categories of supplies. Failure to consider some elements and supplies leads to accurate figures and hence has implications on the threshold. Engaging a third party or a tax expert can help companies with accurate threshold assessment.

Improper Documentation Preparation:

Among the Most Common VAT Registration in Dubai Mistakes that Businesses Make is a lack of proper documentation in Dubai, which is improvising the necessary documents. Among some essential documents that a business requires for registration include a trade license, a Memorandum of Association, and identification documents for its authorized signatories. Without preparation or missing documentation, the registration procedure is bound to face a delay and non-compliance. For compliance, businesses should make formal arrangements and ensure all the required documentation is organized, up-to-date, and ready for submission to the Federal Tax Authority.

Incorrect Tax Grouping:

Tax grouping is an option available for businesses with multiple entities or branches under certain conditions. Tax grouping allows businesses to register multiple related entities as a single taxable person for the purpose of compliance and reporting. Incorrect tax grouping or non-compliance with the requirements can earn penalties and other compliance burdens. Businesses should check for tax grouping and their eligibility, ensuring complements to all relevant regulations.


The process of VAT registration in Dubai should be carefully planned, executed with attention to detail, and based on the effective preparation and understanding of the tax laws. Businesses could avoid many issues surrounding registration, such as missing deadlines, incorrect assessment of the threshold, poor preparation of documentation, submission of group application insufficiency, limited comprehension of the relevant VAT laws, and insufficient maintenance of the record by mastering these examples. By utilizing the professional advice of the accounting and auditing firms in Dubai, keeping up to date with the latest VAT laws, and investing in effective compliance mechanisms, companies can confidently address the issues related to tax registration in Dubai and ensure compliance with the ongoing changes in the business environment.

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