Non-Resident VAT in the UAE: What You Need to Know

Learn how Non-Resident businesses can register for VAT in the UAE, understand compliance obligations, and manage VAT for cross-border transactions.

What is Non-Resident VAT in the UAE?

Non-Resident VAT applies to foreign businesses that supply goods or services in the UAE but do not have a physical presence in the country. Even without a UAE-based office, certain businesses must register for VAT if they make taxable supplies exceeding the mandatory threshold.

Key points:

• Non-Resident VAT registration is mandatory if taxable supplies in the UAE exceed AED 375,000 per year.

• Applicable to both goods and services supplied within the UAE.

• Registration is done through the Federal Tax Authority (FTA) e-Services portal.

Step 1: Determine Your VAT Registration Requirement

Non-Resident businesses need to assess:

• Are your taxable supplies to UAE customers above AED 375,000 annually?

• Are you eligible for voluntary registration if supplies exceed AED 187,500?

Tip: Include all taxable services and goods provided to UAE-based clients, even if invoiced from abroad.

Step 2:  Prepare Required Documents

Non-Resident VAT registration requires a few additional documents compared to UAE-based businesses:

1. Trade license or equivalent business registration from your home country

2. Passport or national ID of owner(s)

3. Bank account details (international or UAE-based)

4. Contact details (email, phone number, physical address)

5. Power of Attorney (if using a local tax representative)

Note: Non-Residents must appoint a tax representative in the UAE if required by the FTA.

Step 3:Appoint a Tax Representative (If Required)

• Non-Resident businesses may need a UAE-based tax representative to handle VAT compliance.
• Responsibilities include:

  • Filing VAT returns

  • Liaising with the FTA

  • Receiving VAT-related correspondence

• Tax representatives must be registered with the FTA and have a valid UAE address.

Step 4: Register for VAT Through the FTA

1. Visit the FTA e-Services portal.

2. Click “Register for VAT” and select Non-Resident Business.

3. Complete the application with:

   • Business details

   • Financial data (expected taxable supplies)

   • Appointed tax representative details (if applicable)

4. Upload all required documents.

5. Submit your registration.

Tip: Ensure all international documents are translated into Arabic and certified if necessary.

Step 5: Receive Your VAT Registration Certificate

• Once the FTA approves the application, the non-resident business will receive a VAT registration certificate with a Tax Registration Number (TRN).

• The certificate must be used on all UAE invoices and correspondence.

Step 6: Comply with UAE VAT Obligations

FAQs About Non-Resident VAT in the UAE

Q1: Do all foreign businesses need a UAE tax representative?
Not all, but most non-resident businesses without a physical presence must appoint one.

Q2: Can non-resident VAT-registered businesses reclaim UAE VAT?
Yes, input VAT can be reclaimed under certain conditions using VAT refund mechanisms.

Q3: How long does non-resident VAT registration take?
Typically 5–10 business days, but may vary depending on document verification.

Q4: What happens if my taxable supplies drop below the threshold?
Non-resident businesses may de-register if they no longer meet the mandatory threshold, following FTA procedures.