How to Register for VAT in the UAE
VAT was introduced in the UAE at 5% on 1 January 2018. Businesses with taxable supplies exceeding AED 375,000 in the last 12 months (or expected to exceed within the next 30 days) must register. Voluntary registration is available from AED 187,500. Registration is done through the Federal Tax Authority's (FTA) EmaraTax portal.
Before you start
- Valid Trade Licence (Mainland or Free Zone)
- Emirates ID and passport of the authorised signatory
- Business bank account details (IBAN)
- Details of taxable supplies for the past 12 months
- Description of business activities and estimated future turnover
Step-by-step
Create an EmaraTax Account
Visit emaratax.gov.ae and create a new account using your registered email. Verify your identity and link your trade licence number to your profile.
Determine Registration Category
Assess whether you need Mandatory Registration (taxable supplies ≥ AED 375,000), Voluntary Registration (supplies ≥ AED 187,500), or Exception from Registration (supplies are zero-rated only). Mandatory registrants must apply within 30 days of crossing the threshold.
Complete the VAT Registration Form
On EmaraTax, navigate to 'Register for VAT'. Fill in business details, taxable supply history, bank account information, and the details of all business partners/directors. For groups of companies, a Tax Group registration may be more efficient.
Upload Supporting Documents
Attach the Trade Licence, Emirates ID, passport of authorised signatory, and bank account verification (IBAN confirmation letter). The FTA may request additional documents for verification.
Receive Tax Registration Number (TRN)
The FTA typically issues the TRN within 20 business days. The TRN is a 15-digit number that must appear on all tax invoices issued to customers. You can also verify supplier TRNs on the FTA website.
Set Up VAT Accounting and Filing Calendar
Establish a system to track input tax (VAT paid on purchases) and output tax (VAT charged on sales). VAT returns are typically filed quarterly on EmaraTax. The return and any net VAT payable are due by the 28th of the month following the quarter end.
Common mistakes to avoid
- Missing the 30-day registration window after crossing the mandatory threshold — the FTA levies a AED 20,000 penalty for late registration.
- Charging VAT before receiving the TRN — issuing tax invoices without a valid TRN violates the VAT Law.
- Incorrectly classifying supplies as exempt or zero-rated — the two are legally distinct; mistakes cause underpayment or overclaiming of input tax credit.
- Not retaining tax invoices for 5 years — the FTA requires businesses to keep all tax records for at least 5 years (15 years for real estate transactions).
Frequently asked questions
Do UAE Free Zone companies need VAT registration?
Free Zone companies that make supplies to Mainland UAE (or import goods) are subject to UAE VAT and must register if thresholds are met. Supplies within a Designated Free Zone may qualify for VAT suspension — check your Free Zone's designated status.
Can I recover VAT paid on business purchases?
Yes. Input tax credit allows registered businesses to offset VAT paid on business-related purchases against VAT collected on sales. Only VAT on business purposes (not personal expenses) is recoverable.
How often must VAT returns be filed?
Most businesses file quarterly. The FTA may assign a monthly filing period if annual taxable supplies exceed AED 150 million. The return and payment are due by the 28th of the month following the tax period.
What if my business has both taxable and exempt supplies?
Partial exemption rules apply. You can only recover the proportion of input tax that relates to taxable supplies. An apportionment calculation must be done each tax period, usually based on the ratio of taxable to total supplies.
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