Is there any time limits for VAT registration?

Is there any time limits for VAT registration?

In the UAE, businesses are required to register for VAT if their annual taxable supplies or expenses exceed AED 375,000. There is no specific time limit for registration, but businesses must register within 30 days of reaching this threshold to avoid penalties and fines for non-compliance.

A person who is required to register for VAT must file a Tax Registration application with the Federal Tax Authority (FTA) within 30 days of being required to register

The answer to this question is within 30 days. This is applicable only for the Mandatory VAT Registration.

VAT registration in the UAE had specific time limits based on reaching the mandatory registration threshold within a 12-month period. Here's a detailed explanation:

1. Mandatory Registration Threshold: The UAE VAT law mandated that businesses should register for VAT if their taxable supplies and imports exceeded the mandatory registration threshold within a 12-month period. The threshold was set at AED 375,000.

2. Voluntary Registration: Even if a business did not reach the mandatory threshold, it could choose to voluntarily register for VAT if its supplies and expenses met certain criteria. Voluntary registration allowed businesses to claim back VAT on their expenses.

3. Timing of Registration: When a business reached or exceeded the mandatory threshold within a rolling 12-month period, it had 30 days from the end of that month to submit the VAT registration application. This 30-day period was essentially the time limit for registration once the threshold was met.

A person who is required to register for VAT must file a Tax Registration application with the Federal Tax Authority (FTA) within 30 days of being required to register. The mandatory registration threshold is AED 375,000 and the voluntary registration threshold is AED 187,500. 

Businesses that are subject to VAT must submit regular tax returns to the Federal Tax Authority (FTA) in the UAE. The deadline for submitting these returns is typically within 28 days of the end of the "tax period," which is defined differently for each type of business. During this time, businesses are required to accurately report their taxable supplies, input tax, and other related information to the FTA.

Regular VAT returns must be submitted to FTA by taxable businesses, typically within 28 days of the conclusion of the 'tax period' that varies depending on the type of company. A "tax period" is a defined time frame for which the applicable tax must be determined and paid. The regular tax year is:

Businesses with yearly turnovers of AED150 million or more are paid monthly; those with turnovers below AED150 million are paid quarterly.