VAT registration in the UAE

VAT is a consumption tax charged on most goods and services in the UAE at a standard rate of 5%. A business that registers charges VAT to customers, recovers the VAT it pays on business costs and files regular returns. Registration is free and is done with the Federal Tax Authority.

Whether you must register depends on your turnover and expected turnover, not on the size of your company or its location. This guide explains the two thresholds, the steps and the documents. It is general information, not tax advice.

What is the VAT registration threshold in the UAE?

The mandatory registration threshold is AED 375,000. You must register if your taxable supplies and imports exceeded that amount over the previous 12 months, or if you expect them to exceed it in the next 30 days. The 30 days is a forecast period, not a grace period.

The voluntary registration threshold is AED 187,500. A business below the mandatory threshold may apply if its taxable supplies, imports or taxable expenses exceeded that amount in the past 12 months, or are expected to in the next 30 days. Voluntary registration can help a start-up recover VAT on set-up costs.

• Mandatory: more than AED 375,000 in taxable supplies and imports
• Voluntary: more than AED 187,500 in taxable supplies, imports or taxable expenses
• The mandatory threshold does not apply to foreign businesses making taxable supplies in the UAE

How long do I have to register for VAT in the UAE?

Applications must be submitted within 30 days of becoming required to register.

Failing to submit a registration application within the time limit carries an administrative penalty of AED 10,000 under the Cabinet Decision on tax penalties. Check the current penalty table on the Federal Tax Authority or Ministry of Finance website.

Do I need a trade licence to register for VAT?

Not always. Natural and legal persons carrying out an economic activity in the UAE may need to register even without a trade licence. In practice most applicants upload a licence, because it is the main proof that the business exists.

Is VAT registration the same as corporate tax registration?

No. They are separate registrations under separate laws, each with its own application and Tax Registration Number process. A VAT-registered business must still register for corporate tax. Many owners complete both on EmaraTax around the same time.

How to register for VAT on EmaraTax

1. 1

   Work out whether you must register

   Add up taxable supplies and imports for the past 12 months and forecast the next 30 days. Above AED 375,000 on either test, registration is mandatory.

2. 2

   Create and activate an EmaraTax account

   Federal Tax Authority services are available through UAE Pass.

3. 3

   Create a Taxable Person profile

   Add the business as a new profile in the dashboard, then select View to open its account.

4. 4

   Choose Register under Value Added Tax

   Complete the registration form with the business details and the figures that support your registration.

5. 5

   Upload the supporting documents

   Files must be PDF, up to 15 MB each. A signed and stamped declaration of taxable supplies and monthly sales is among them.

6. 6

   Submit and wait for the Federal Tax Authority

   The Federal Tax Authority estimates about 20 business days from receipt of a complete application. The VAT registration certificate then appears in the e-Services dashboard.

7. 7

   Start charging VAT and diarise your returns

   Once registered, put your Tax Registration Number on tax invoices and file VAT returns on the schedule the Federal Tax Authority assigns.

Documents you typically need

• Certificate of incorporation, memorandum of association or partnership agreement, where applicable
• Trade licence, and any branch licences
• Emirates ID and passport copies of owners and authorised signatories
• Power of attorney for authorised signatories, where needed
• Signed and stamped declaration of total taxable supplies and monthly sales since establishment
• Supporting evidence such as invoices, purchase orders, contracts or lease agreements
• For registration based on expenses, at least five VAT invoices above the registration threshold
• Evidence of expected revenue, such as stamped and signed purchase orders or contracts, where you rely on the 30-day forecast
• A bank letter (optional; for companies, the account must be in the company's name)

Things to weigh up

• This is general information, not tax advice. Check the Federal Tax Authority website or take advice for your own facts.
• Registering means you must charge VAT, issue tax invoices and file returns, even for periods with no sales. Plan the bookkeeping before you register.
• Inaccurate or misleading figures in the application can lead to action by the Federal Tax Authority.
• Registration is free of charge. If a provider charges, it is for preparing the application.