VAT Registration UAE

If your business is generating substantial revenue in the UAE, VAT registration is not optional – it is a legal requirement under the UAE VAT Law once you cross the registration threshold. Yet many business owners feel uncertain about the VAT registration UAE process, deadlines, and what it means for their day‑to‑day operations. This guide explains how to register for VAT in UAE step by step, from eligibility and documents to using the FTA online portal and preparing for your first VAT return.​

Understanding VAT in the UAE

Value Added Tax (VAT) is a 5% consumption tax charged on most goods and services supplied in the UAE. VAT was introduced on 1 January 2018 and is administered by the Federal Tax Authority (FTA) to diversify government revenue away from oil.​

When your business is registered for VAT, you must charge 5% VAT on taxable supplies (output VAT) and can generally recover the VAT paid on eligible business expenses (input VAT). This ensures tax is only collected on the value added at each stage of the supply chain, rather than on the full selling price every time.​

Who Must Register for VAT in the UAE?

The primary VAT registration requirement in the UAE is your taxable turnover over a rolling 12‑month period.​

Mandatory VAT registration

You must register for VAT if:​

• Your taxable supplies and imports exceed AED 375,000 in the last 12 months, or

• You expect to exceed AED 375,000 in the next 30 days.

Mandatory VAT registration also applies to:​

• Non‑resident persons making taxable supplies in the UAE where no UAE resident is obliged to account for VAT.

• Certain government entities and designated entities specified by the Cabinet.

Businesses established in free zones must also register if they make taxable supplies within the UAE and exceed the mandatory registration threshold.​

Voluntary VAT registration

You may voluntarily register for VAT if your taxable supplies or taxable expenses are more than AED 187,500 but less than AED 375,000 over 12 months. Voluntary registration can be attractive if you have significant input VAT on costs and want to recover it earlier.​

Exempt and zero‑rated activities

Some supplies are exempt, and others are zero‑rated:​

• Exempt supplies (for example, certain financial services and residential real estate) generally do not give rise to input VAT recovery.

• Zero‑rated supplies (for example, certain exports of goods and international transport) are taxable at 0%, and input VAT is usually recoverable.

If your business deals only in exempt supplies, you will normally not register; however, if you make both exempt and taxable supplies, VAT registration UAE may still be mandatory depending on your turnover.​

VAT Registration Requirements and Documents

Before starting VAT registration online UAE via the FTA portal, gather all key documents to avoid delays. A practical VAT registration checklist includes:​

• Trade licence or commercial registration certificate

• Memorandum and Articles of Association or partnership agreement

• Passport and Emirates ID copies of owners/partners and authorised signatories

• Proof of business address (Ejari/tenancy contract, title deed, or utility bill)

• Bank account details and recent bank statements (typically last 3–6 months)

• Financial statements or management accounts showing turnover

• Description of business activities and expected future revenues

• Details of branches or related parties in the UAE or GCC, if any

Having clear, legible scans of these VAT registration documents in PDF or image format will significantly speed up approval.​

Step-by-Step VAT Registration Process in UAE (FTA Portal)

All VAT registration in the UAE is done through the FTA’s e‑Services (EMARATAX) portal.​

Step 1: Create your FTA account

1. Go to the official FTA website: tax.gov.ae and access the e‑Services portal.​

2. Click Sign up, enter your email address, create a password, and verify your email to activate the account.​

This FTA account will be used for VAT registration, VAT return filing, making payments, and handling all future VAT correspondence.​

Step 2: Start the VAT registration form UAE

Once logged in:​

• Select Register for VAT under the VAT section.

• Begin the VAT registration application form, providing:

  • Applicant details and contact information

  • Business legal details (legal form, trade name, trade licence numbers)

  • Banking information

  • Details of business activities and GCC presence

  • Turnover figures for the past 12 months and expected turnover

Ensure turnover figures are accurate and exclude exempt supplies when assessing the mandatory VAT threshold UAE.​

Step 3: Upload supporting documents

The portal will prompt you to upload all necessary VAT registration documents. Double‑check that:​

• Documents are clear, valid, and up to date.

• Names, licence numbers, and dates match the data entered in the form.

Incomplete or inconsistent documentation is one of the most common reasons for VAT registration delays.​

Step 4: Review and submit your application

Before submitting, review each section carefully for:​

• Correct legal names and licence details

• Accurate turnover and projected revenue

• Correct selection of mandatory or voluntary registration

Once satisfied, submit the application via the portal. You will receive an acknowledgement notification in your FTA account and by email.​

Step 5: Application processing and queries

The FTA generally processes VAT registration applications within 10–14 working days, although timing may vary depending on volume and complexity. If additional information is required, the FTA will raise queries or request extra documents through the portal.​

Responding quickly and accurately to these requests helps avoid rejection or long delays.​

Step 6: VAT registration certificate and TRN

Once approved, the FTA will issue your VAT registration certificate showing your Tax Registration Number (TRN). The TRN is your unique VAT registration number and must appear on all tax invoices, credit notes, and relevant VAT correspondence.​

Download and store your VAT registration certificate safely, and share the TRN with your accountant or VAT consultant.​

Step 7: Update your invoicing and accounting systems

After you register for VAT Dubai or in any other emirate, you must:​

• Update invoice templates to include your TRN and show VAT amounts separately.

• Configure your accounting or ERP software (such as Tally, QuickBooks, Zoho Books, or Xero) for UAE VAT codes and tax rates.

• Train staff responsible for billing and bookkeeping on how to issue VAT‑compliant tax invoices.

Step 8: Prepare for your first VAT return

Your VAT registration certificate and FTA account will show your tax period (monthly or quarterly) and the date from which you are registered. Your first VAT return will be due at the end of that period and must be submitted within 28 days after the period ends.​

Planning early for VAT record‑keeping and return preparation will help you remain fully VAT compliance UAE from day one.​

VAT Registration Timeline and Deadlines

From start to finish, a realistic VAT registration timeline in the UAE is usually 3–4 weeks if your documents are complete and the application is accurate.​

A typical VAT registration process looks like this:​

• Document preparation: 1–2 weeks (depending on how organized your records are)

• Completing and submitting the VAT registration online UAE: 1–2 days

• FTA review and clarification: 10–14 working days, sometimes longer

• Issuance of VAT registration certificate and activation of TRN: a few days after approval

Remember that for mandatory registration, you must apply within 30 days of exceeding the AED 375,000 taxable turnover threshold. Late registration can result in administrative penalties.​

Common VAT Registration Mistakes to Avoid

Many businesses find VAT registration straightforward but still fall into avoidable errors.​

Some common mistakes include:​

1. Missing the VAT registration deadline UAE by assuming turnover will fall back below the threshold.

2. Incorrect turnover calculations, especially including exempt or out‑of‑scope supplies when assessing the threshold.

3. Incomplete or blurred documents, causing FTA queries or rejection.

4. Using the wrong legal details, such as spelling mistakes in trade names or licence numbers.

5. Failing to prepare for VAT obligations, such as not updating accounting systems or not training staff.

6. Ignoring FTA communication in your portal inbox, which can cause your application to be closed or delayed.

Working with a VAT specialist can help you avoid these pitfalls and ensure a clean VAT registration file.​

Post‑Registration: Your Main VAT Obligations

Once your business is VAT‑registered, ongoing VAT compliance UAE becomes a regular part of your finance function.​

Issuing VAT‑compliant tax invoices

Every tax invoice should include at least:​

• Supplier name, address, and TRN

• Customer name and address (for B2B transactions)

• Unique invoice number and date

• Description of goods or services supplied

• Quantity, unit price, and net amount

• VAT rate and VAT amount shown separately

• Gross total payable

For smaller values, simplified tax invoices may be used, subject to FTA rules.​

Maintaining proper VAT records

Registered businesses must keep complete VAT records, such as:​

• Sales and purchase invoices

• Credit notes and debit notes

• Import and export documentation

• Bank statements and accounting records

These records should generally be retained for at least 5 years from the end of the tax period, and longer in some cases (e.g., real estate).​

Filing VAT returns and paying VAT

Most businesses file VAT returns quarterly, though some high‑turnover businesses are placed on a monthly cycle. VAT returns and payments must usually be completed within 28 days of the end of the tax period through the FTA portal.​

Your VAT return will report:​

• Output VAT collected on your sales

• Input VAT incurred on eligible purchases

• Net VAT payable (or refundable)

Late filing or late payment attracts penalties and can lead to increased scrutiny from the FTA.​

Maximising Input VAT Recovery

One key benefit of VAT registration is the ability to recover eligible input VAT, improving cash flow for your business.​

Commonly recoverable business expenses include:​

• Office rent and utilities

• Computers, equipment, and machinery

• Professional services such as auditing, legal, and consulting fees

• Software subscriptions and technology platforms

• Inventory and raw materials

• Business travel related to taxable activities

Certain expenses – for example, some entertainment costs or passenger vehicles not used exclusively for business – may be blocked or partially restricted. Maintaining clear documentation and VAT‑compliant invoices is essential to support input VAT claims.​

Why Work with a VAT Specialist in the UAE?

While it is possible to complete VAT registration yourself, many businesses choose to partner with a VAT specialist to save time and reduce risk.​

A professional adviser can help you with:​

• Assessing whether you must or should voluntarily register for VAT.

• Preparing and submitting a robust VAT registration file with the FTA.

• Setting up tax‑compliant invoicing and accounting systems.

• Ongoing VAT filing UAE, record‑keeping, and responding to FTA queries or audits.

For growing SMEs, this support can be the difference between smooth VAT compliance and costly penalties.

Need Help with VAT Registration in the UAE?

If your business is close to or has already crossed the AED 375,000 taxable turnover threshold, now is the right time to act on VAT registration UAE. The sooner you register for VAT Dubai or any other emirate, the sooner you can protect your business from non‑compliance penalties and start recovering input VAT on eligible expenses.​

STH Financial Services supports UAE businesses with end‑to‑end Federal Tax Authority registration, VAT return filing, and ongoing VAT compliance. Reach out today to discuss your situation, review your documents, and complete your VAT registration process UAE smoothly and confidently.