VAT Number in UAE : What It Is & How to Find Yours

A VAT number in UAE is a 15-digit distinctive UAE Federal Tax Authority-issued number to registered businesses for Value Added Tax filing. It is a legal confirmation of VAT registration and will be utilised for the issuance of tax invoices, VAT return filing, and taxable transactions within the UAE.

Entities beyond the mandatory level are obligated to register and maintain a valid VAT number in the UAE to stay in compliance. This blog provides an overview of what a VAT number is, who needs it, where and how to find or verify it, and why it matters in facilitating effective VAT implementation in the UAE tax system.

What Is a VAT Number in the UAE?

A UAE VAT number or a Tax Registration Number (TRN) is a structured 15-digit number issued by the Federal Tax Authority (FTA) to registered businesses and individuals in the VAT regime. It is utilised as a unique tax identifier, which is used in all the VAT transactions like issuance of tax invoices, filing of returns, and interacting with government systems.

The UAE VAT number is structured as follows:

• First digit: Always "9", a duplicate of the UAE country code.
• Next two digits: Code the type of entity, "01" for companies, "02" for individuals working alone.
• Next three digits: Duplicate of the main Tax Registration Number of the entity.
• Next six digits: Duplicate of the registration date for VAT.
• Last digit: Check digit to validate the VAT number.

This format makes each VAT number unique and trackable, enabling the registrant to be identified and tax to be imposed. It also enables regulatory authorities as well as trading partners to ease compliance and streamline tax reporting procedures.

Who Needs a VAT Number in the UAE?

Any business which is operating in the UAE and has a turnover equal to or above the VAT registration limit must obtain a VAT number, or Tax Registration Number (TRN).

According to the Federal Tax Authority (FTA), registration is also required where taxable imports and supplies exceed AED 375,000 in 12 months. The business will need to register for VAT 30 days after crossing the threshold. It will be liable for an administrative penalty of AED 10,000 if not.

Besides that, the UAE also promotes voluntary registration for companies whose taxable imports and supplies are between AED 187,500 and AED 375,000. Non-mandatory but essential to its business, voluntary registration enables businesses to recover VAT on costs and improve their market standing. All of the VAT registrations must be done through the e-Services portal of the FTA after thorough documentation and verification procedures.

How to Get a VAT Number in the UAE? 

In order to legally charge, collect, and remit VAT in the UAE, qualified businesses are required to register with the Federal Tax Authority (FTA). The steps of having a VAT number in the UAE are as follows:

• Check Eligibility for VAT Registration: Check whether your business is nearing or surpassing the statutory threshold of AED 375,000. Voluntary registration is also permitted for companies with a turnover of over AED 187,500.
• Prepare Required Documents: Get the necessary documents like your trade license, Emirates ID copy or passport copy, financial documents, and whatever else documents FTA may ask for.
• Register Online: Log in at the FTA e-Services portal and fill up the VAT registration form with accurate business and financial details.
• Pay Registration Fee: There will be an application fee, which is non-refundable and has to be paid with the application as per the mandate of the FTA.

How to Register for a VAT Number in the UAE? 

VAT number UAE application is an online form process facilitated by the Federal Tax Authority (FTA). The companies have to make sure that information and documents are correct to prevent delay or penalty. The following is how to fill out the registration:

• Create an Account on the FTA e-Services Portal: Go to eservices.tax.gov.ae, register with your company email address, and activate.
• Access the VAT Registration Form: Log in and select "Register for VAT" from the dashboard. Begin to fill in the online registration form.
• Enter Correct Business Details: Enter important details such as business name, trade license number, legal status, contact information, and bank details.
• Submit Financial and Supporting Documents: Upload scanned copies of supporting documents such as trade licence, Emirates ID or passport, and financial documents proving taxable turnover.
• Complete VAT Eligibility and Threshold Status Declaration: Ensure that you are eligible to register on the mandatory or voluntary registration threshold in terms of taxable supplies and imports.
• Check and Send in the Application: Read all details attentively, pay the application fee, and send in an application for FTA consideration.

Common Mistakes to Avoid with VAT Numbers

Incorrect processing of your VAT number UAE can incur fines, late processing, or non-compliance. Below are some common mistakes enterprises should avoid:

• Late VAT Registration: Not registering within 30 days of exceeding the obligatory threshold can incur a fine of AED 10,000.
• Use of an Invalid or Erroneous VAT Number: Erroneous TRN on invoices and VAT returns may result in rejection by the FTA and loss of credibility.
• Not Showing the VAT Number on Invoices: All tax invoices should clearly display the registered VAT number; non-compliance is a VAT offence.
• Incorrect Calculation of Threshold: Underestimation of taxable imports and supplies can lead to premature or delayed registration.
• Failure to Update Business Information: Failure to register changes in trade licence, address, or ownership with the FTA can lead to VAT record mismatches.
• Assuming VAT Number Is Automatically Given: Companies need to submit actively through the FTA portal; VAT registration numbers are not automatically issued on trade license registration.

Conclusion

Acquiring and using your VAT number UAE in the right way is a necessity to stay within the provisions of the UAE VAT laws. Right from fulfilling the requirement of registration to providing accurate information through the FTA portal, each detail counts in order to escape penalty and ensure smooth business operations. Regardless of compulsory or voluntary registration, remaining well-advised about format, purpose, and valid application of your VAT number maintains fiscal integrity, gains the confidence of stakeholders, and also complies with all of the UAE's VAT regulations.