UAE VAT Registration for Freelancers: Complete Guide

The UAE introduced registration for VAT four years ago and businesses are settling into the VAT Registration regime. Organizations have slowly been able to adapt the changes and understand the rules and regulations. However, there are a number of challenges faced by the freelancers and self-employed individuals in realizing what they actually need to do and how the process will start.

Who is Subject to UAE VAT?

If you are a freelancer having your Dubai freelancer visa in UAE, you must take into consideration your earnings. This is important to know because VAT is applicable on freelancers who earn more than AED 375,000 in a year. As a freelancer, you must be fully aware of your obligations and must register for VAT if you exceed the threshold of AED 375,000.

How To Register for VAT As a Freelancer?

It has become much easier for the freelancers in UAE to operate in the past few years. Here are the several steps you need to follow to get yourself registered for VAT as a freelancer in UAE.

1. Acquire your License

The UAE has introduced a range of license choices which is a great option for the people who have some skills and want to start freelancing. You can get yourself registered for VAT once you acquire a permit. There are a number of free zones in UAE from where you can acquire your permit at affordable prices. After obtaining the license, you can get yourself registered for a tax registration number (TRN). registration for tax in not required if your annual income is below AED 375,000.

2. Online Enrollment

Once you obtain your license, you can get yourself registered online by making your account through FTA (Federal Tax Authority) portal. This would be an electronic service account with which you would be able to login as a freelancer in UAE. The process of online registration is simple. You just need to provide your Email and get your ID details. Create your password and initiate the process of registration.

3. Complete the Registration Procedure

To complete the process of registration, you need to provide several documents:

Incorporation Certificate

Trade license

The Memorandum of Association

Projected Future Revenues

A copy of the Emirates ID Freelancer Passport and

Details Bank Account

Financial report for the past 12 months

The concerned Ministry will approve the registration and assign a Tax Registration Number (TRN) once you submit all required documents.

If you fail to register for VAT despite being eligible, you would be penalized by the authorities. Late registration would cost you 10,000 AED in penalties. In order to comply with UAE VAT rules and avoid future complications with Federal Tax Authority, you must maintain your financial records meticulously.