VAT Registration in Sharjah: Process, Documents & Eligibility

Businesses in Sharjah must register for VAT through the Federal Tax Authority's EmaraTax portal if their taxable supplies/imports exceed AED 375,000 over the past 12 months or voluntarily if above AED 187,500 (or taxable expenses exceed that threshold, including startups and foreign entities). 

To apply for VAT registration in Sharjah, register or log in via the FTA website or UAE Government portal, create a taxable‑person profile, complete the VAT registration form, upload required documents (e.g., trade licence, Emirates ID, passport, bank details, turnover declaration), and submit within 30 days of crossing the threshold. Upon approval, you'll receive your Tax Registration Number (TRN) via EmaraTax, your official confirmation to charge VAT, file returns, and make payments through the portal.

What is VAT?

Value Added Tax, or VAT, is a tax on goods and services consumed within the supply chain. In the UAE, including Sharjah, VAT was implemented with a general rate of 5% back in 2018 to diversify the country's revenues.

It is applied at each stage in the manufacturing and distribution process but finally recovered from the final consumer. Sharjah registered companies are required under local legislation to apply VAT on taxable supplies, make periodic returns, and remit the collected tax to the Federal Tax Authority (FTA).

Why VAT Registration is Important in Sharjah

VAT registration is not just a regulatory obligation but a business choice which enables your business to meet the demands of the Federal Tax Authority compliance and derive essential financial and operational advantages.

• Compliance with the Law: Sharjah VAT registration upholds UAE tax legislations compliance in an attempt to avoid penalties and compliance infractions.
• Greater Credibility in the Marketplace: A VAT-registered firm is considered to be credible and reliable, particularly when it comes to doing business with government agencies and large firms.
• VAT Recoverable Input Tax: VAT-registered firms can recover input tax on qualifying expenses, and this makes it easier to manage enhanced cash flows.
• Position of Competition: VAT compliance can enable entry into agreements with big VAT-registered customers who prefer trading with compliant providers.
• Financial transparency: VAT registration provides for traditional accounting that promotes open financial disclosure and readiness to be audited.

Who Needs to Register for VAT in Sharjah?

Sharjah VAT registration monitors taxable imports, expenses, or supplies within 12 months. Compulsory registration monitors the Federal Tax Authority for specified financial levels and economic activities.

• Compulsory Registration: AED 375,000 Threshold: Enterprises shall register under VAT when taxable supplies and imports are more than AED 375,000 within 12 months.
• Voluntary Registration: AED 187,500 Threshold: Sharjah VAT registration may be undertaken by companies if their taxable supply, imports, or taxable expenses in the previous 12 months were greater than AED 187,500 or would be so in the next 30 days. 
• Start-ups: Start-ups with nil turnover may voluntarily register to claim back investment input VAT.
• Foreign Entities: UAE suppliers of tax-paid goods or supplies in the UAE are also supposed to register, irrespective of their turnover, unless a UAE business is obligated to account for VAT.

Step-by-Step VAT Registration Process in Sharjah

Companies that achieve the stipulated threshold will be required to apply for VAT registration in Sharjah within 30 days of exceeding the threshold. The systematic registration process is used to ensure compliance and prevent penalties from the Federal Tax Authority (FTA).

1. Assess VAT Registration Requirement

Determine if your business is eligible for compulsory (over AED 375,000) or voluntary (over AED 187,500) VAT registration. This is in terms of taxable supplies, imports, or expenses in the last 12 months or anticipated within the next 30 days.

2. Gather Required Documents

Prepare all necessary documents, which typically include: Valid trade licence, Passport and Emirates ID copies of owners/partners/managers, Authorised signatory documents, etc. 

3. Create an Account on the FTA Portal

Access the Federal Tax Authority (FTA) portal, create an online account, and complete the online VAT registration in the Sharjah application. Make sure all information is accurate, especially your business activity classification and financial details.

4. Submit the VAT Registration Application

Complete the online VAT form, upload the required documents, and submit the application through the FTA portal. Ensure each document is clear and complies with the file format and size requirements of the portal.

5. Obtain Your Tax Registration Number (TRN)

Once approved, the FTA will issue a Tax Registration Number (TRN) for your business. This number must be used on all tax invoices, credit notes, and VAT filings. Keep it secure and accessible.

6. Start VAT Compliance

After receiving the TRN, you must:

• Begin charging VAT on taxable supplies
• Maintain proper VAT-compliant invoices and records
• File VAT returns regularly, monthly or quarterly, based on the FTA’s assigned schedule
• Submit payments or claim refunds accordingly

Documents Required for VAT Registration in Sharjah

To apply for VAT registration in Sharjah and obtain your Tax Registration Number (TRN), businesses must prepare and submit the following documents to the Federal Tax Authority (FTA):

• Copy of Valid Trade Licence: Confirms the legal operation of the business in Sharjah; must be current and active.
• Passport Copies of Owners/Shareholders/Managers: Clear, valid copies of passports for all key individuals involved in the company.
• Emirates ID Copies of Owners/Shareholders/Managers: Updated Emirates ID copies for all stakeholders; expired IDs should be renewed prior to submission.
• Complete Company Contact Details: Includes office address, P.O. Box, area, and building name for accurate communication with FTA.
• Memorandum of Association (MOA): Outlines the business structure and activities; required for companies other than sole proprietorships.
• Authorised Person’s Contact Information: Mobile number, designation, and email of the individual responsible for VAT-related communication.
• Official Company Bank Account Details: Business account name, number, IBAN, and bank name; personal accounts are not accepted.
• Turnover Declaration for the Last 12 Months: A stamped, signed declaration on company letterhead reflecting total taxable turnover.
• Sample Sales or Purchase Invoices: Signed and stamped samples demonstrating high-value transactions and VAT invoice structure.
• Customs Letter (if applicable): Required for businesses engaged in import/export to confirm customs registration.

Conclusion

VAT registration allows businesses to charge and recover VAT on taxable supplies, maintain financial transparency, and enhance their credibility, especially when dealing with larger entities or government agencies. The process involves determining eligibility, preparing required documents (like trade licenses, Emirates ID, and bank details), creating an account on the FTA portal, submitting the application, and receiving a Tax Registration Number (TRN) to be used on all VAT-related documents.

To register for VAT in Sharjah, businesses must gather all necessary documents, including a valid trade license, identification for owners and managers, bank details, turnover declarations, and sample invoices. Once the application is approved, companies are required to start charging VAT on taxable supplies, maintain compliant records, file returns as scheduled by the FTA, and manage payments or refunds accordingly. Compliance not only avoids legal penalties but also improves business operations and cash flow management by allowing input tax recovery.