VAT Registration in Sharjah

In the UAE, Value Added Tax (VAT) applies to most goods and services, including those traded within Sharjah. Businesses that cross the mandatory taxable turnover threshold must complete VAT registration to operate lawfully.

Registering for VAT enables companies to legally collect VAT from customers and recover VAT paid on business-related expenses. It also helps prevent legal issues and penalties by keeping your operations fully compliant.

With IRHA Accounting & Auditing, VAT registration becomes a simple, guided process. Our experts manage the end-to-end filing, so your business stays compliant without delays or complications.

What is VAT in Sharjah?

VAT (Value Added Tax) is a consumption tax imposed on goods and services at each point of sale where value is added. Sharjah follows the UAE’s unified VAT framework, applying a standard rate of 5%.

Collected by registered businesses and submitted to the Federal Tax Authority (FTA), VAT is a key revenue source for the government. It affects pricing across sectors and has implications for both consumers and businesses operating within the emirate.

VAT Regulations in Sharjah

In Sharjah, VAT is regulated under the UAE’s unified tax framework and supervised by the Federal Tax Authority (FTA). Businesses are legally required to register for VAT if their taxable supplies and imports exceed AED 375,000 annually. Those with earnings between AED 187,500 and AED 375,000 may opt for voluntary registration.

Once registered, businesses must file VAT returns periodically, providing accurate reports of taxable activities, input VAT, and tax payable.

These rules are designed to enhance tax compliance, promote financial transparency, and support national economic growth.

Who Needs to Register for VAT in Sharjah?

Businesses in Sharjah must comply with VAT registration rules if they meet certain financial thresholds set by the UAE's Federal Tax Authority (FTA).

Mandatory Registration

✅ Taxable Revenue and Imports:

If your business generates more than AED 375,000 annually in taxable supplies and imports, VAT registration is legally required.

Voluntary Registration

✅ Lower Threshold Eligibility:

If your business’s taxable supplies, imports, or expenses exceed AED 187,500 annually, you may register voluntarily.

✅ Start-ups and New Businesses:

Even without active turnover, start-ups can register to claim input VAT on eligible business expenses.

These rules apply to businesses across the UAE. Foreign entities supplying taxable goods or services in the UAE must also register if no local party is responsible for settling the tax.

VAT Registration for New Companies in Sharjah

If a newly formed business in Sharjah exceeds the VAT registration threshold, it must register with the Federal Tax Authority (FTA) within 30 days. This process includes providing essential documentation such as the trade license, financial statements, and contact information.

IRHA Accounting & Auditing offers end-to-end VAT registration support for new businesses—helping you complete the process accurately and on time, so your operations start on a compliant note.

Step-by-Step Guide to VAT Registration in Sharjah

Registering your business for VAT in Sharjah requires accuracy, preparation, and compliance with FTA guidelines. At IRHA Accounting & Auditing, we manage the entire process to make it smooth and hassle-free:

✅ 1. Check If You Need to Register

We begin by evaluating your taxable turnover and imports to determine if your business qualifies for mandatory or voluntary VAT registration.

✅ 2. Gather Supporting Documents

Key documents include:

✅ Valid trade license

✅ Passport copies of owners and managers

✅ Official bank statements

✅ Proof of business location

✅ Any additional paperwork as required by the FTA

✅ 3. Apply Through the FTA Portal

We create your account and complete the VAT registration form on the Federal Tax Authority’s website—ensuring all entries are correct and properly submitted.

✅ 4. TRN Allocation

Once approved, your business will receive a Tax Registration Number (TRN), which confirms your VAT registration and is used in all tax-related dealings.

✅ 5. Ongoing VAT Filing Support

After registration, we provide continued support with VAT return filing and ensure your business stays compliant with all ongoing requirements.

Why VAT Registration Matters for Businesses in Sharjah

Registering for VAT in Sharjah isn’t just about compliance—it’s a strategic move that benefits your business in multiple ways. It helps you:

✅ Recover VAT paid on eligible expenses and business purchases

✅ Strengthen financial discipline and improve operational transparency

✅ Build credibility and trust with clients by aligning with UAE tax laws

FTA's New Deadline is October 2024: Late Registrations Will Incur AED 10,000 Penalty!