VAT Registration · United Arab EmiratesUAE VAT registration turns on AED 375,000 of taxable supplies. The test looks back 12 months and forward 30 days.
We work out when you must register for VAT, whether registering earlier helps, whether a tax group makes sense, and get your TRN in place before your first tax invoice.
Tax
At a glance
- Authorities
- Federal Tax Authority (FTA)
- Forms & references
- VAT registration (EmaraTax)VAT TRNTax group registrationVAT deregistration
- Registered with
- FTA, through EmaraTax
- Mandatory
- Taxable supplies and imports above AED 375,000 (at the time of writing)
- Voluntary
- Supplies, imports or expenses above AED 187,500
- Deadline
- Apply within 30 days of the obligation arising
Overview
What it is, and why it matters.
VAT at 5% applies to most supplies of goods and services in the UAE. Registration is mandatory once taxable supplies and imports over the previous 12 months exceed AED 375,000, or are expected to exceed it in the next 30 days. You then have 30 days to apply.
Below that, a business can register voluntarily once its supplies and imports, or its taxable expenses, exceed AED 187,500. That helps start-ups with heavy set-up costs and businesses whose customers are VAT-registered.
A non-resident business making taxable supplies in the UAE must register whatever its turnover, unless the customer accounts for the VAT under the reverse charge. UAE companies under common control can apply to register together as a tax group.
Registration is only the start. From 1 January 2026, amendments to the VAT law removed self-invoicing under the reverse charge and set a 5-year limit on reclaiming excess VAT, and e-invoicing arrives in 2027.
Who needs it
Who typically needs it.
- 01
Growing mainland businesses
Traders, agencies and service firms whose sales are getting close to AED 375,000 over a rolling 12 months.
- 02
Free zone companies
VAT applies in free zones on the same thresholds. Only goods moving within designated zones get special treatment.
- 03
Start-ups with heavy set-up costs
Restaurants, clinics and shops spending on fit-out and equipment before they open, who may register voluntarily to reclaim VAT.
- 04
Online sellers and importers
E-commerce businesses whose imports count towards the threshold and who pay import VAT at customs.
- 05
Groups of related companies
Owners with several UAE companies trading with each other, for whom a tax group may be simpler.
When you need it
The moments that usually trigger it.
- Your taxable supplies over the last 12 months have passed AED 375,000.
- You’ve signed a contract that will take you over the threshold in the next 30 days.
- Your business customers are asking for tax invoices showing a TRN.
- You’re spending heavily on fit-out and equipment before you start trading.
- You run several UAE companies that invoice each other.
- You’ve stopped trading, or your supplies have fallen, and you may need to deregister.
Scope
Exactly what we handle.
Our engagement letter lists these specifically, so you know what is included before any work begins.
- 01
Running the 12-month look-back and 30-day look-forward test month by month, separating standard-rated, zero-rated, exempt and out-of-scope income.
- 02
Advising on voluntary registration and its effect on your prices and cash flow.
- 03
Setting the effective date and preparing the turnover evidence the FTA commonly asks for.
- 04
Assessing whether a tax group helps, which companies can join and which should be the representative member.
- 05
Preparing and submitting the application on EmaraTax and answering FTA queries.
- 06
Setting up VAT codes, tax invoice templates with your TRN and AED amounts, and the first return date in your books.
- 07
Handling deregistration within the 20-business-day window when the business stops making taxable supplies.
- 08
Putting late registrations right, including VAT on past supplies and the related penalties.
The process
How it runs, step by step.
Timings depend on the authority and on how quickly documents come together. We tell you what’s typical for your case at the start.
Start with a conversationTurnover review
We go through your sales and imports for the last 12 months and the next 30 days, and sort them by VAT treatment.
Decision
We agree whether and when to register, and whether to register alone or as part of a tax group.
Application
We submit the application with your licence, turnover evidence, bank details, customs details if you import and owner documents.
Waiting for the TRN
VAT is due from the effective date, but tax invoices can only be issued once you have a TRN. We plan pricing and invoicing for the gap.
Invoices and systems
Once the TRN is issued, we update invoice templates and VAT codes and diarise your first VAT return.
What we’ll need
The information to have ready.
A typical checklist. After the first conversation we send a version specific to your situation, so you don’t gather anything you don’t need.
Business details
- Trade licence and MOA
- Passport and Emirates ID of owners and the manager
- Business address and contact details
- Bank account details in the company’s name
Turnover evidence
- Monthly sales and imports for the last 12 months
- Sample invoices or contracts supporting those figures
- A forecast for the next 30 days and 12 months
Imports and exports
- Customs registration number, if you import or export
- Details of GCC trade, if any
Tax groups
- An ownership chart for the companies
- Licences for each member
- Evidence of common control
Please don’t email passports or bank statements. Once we’ve spoken, you’ll get access to a secure upload.
Common mistakes
Where this usually goes wrong.
The problems we are most often asked to fix, and what they tend to cost.
- Mistake 01
Checking turnover once a year
The test is rolling. A business that only looks at its annual accounts can be months past the threshold before it notices, with VAT due on sales it never charged VAT on.
- Mistake 02
Counting the wrong supplies
Zero-rated supplies and imports count towards the threshold; exempt supplies, such as residential rent, do not. Getting this wrong means registering too early or too late.
- Mistake 03
Not planning for the TRN gap
VAT is due from the effective date, even before the TRN arrives. Businesses that keep invoicing without VAT during the wait often end up absorbing it.
- Mistake 04
Joining a tax group without checking the consequences
Members of a tax group are jointly liable for its VAT, and one member’s poor records can affect all of them.
- Mistake 05
Forgetting to deregister
A business that stops making taxable supplies must apply within 20 business days. Late deregistration carries penalties that build up month by month (to AED 10,000 at the time of writing).
Worth knowing
The limits, stated upfront.
The VAT treatment of some supplies, such as real estate, financial services, designated zones and exported services, turns on fine detail. Where an FTA private clarification is sensible, we say so.
Customs registration and import clearance are handled by each emirate’s customs authority and your clearing agent.
VAT in other GCC countries is outside this service.
The FTA decides applications and may ask for more evidence; processing times vary.
Questions
VAT Registration: frequently asked.
If yours isn’t here, ask us directly. We’ll answer in plain terms.
Ask a questionWhat is the UAE VAT registration threshold?
Registration is mandatory once taxable supplies and imports exceed AED 375,000 over the last 12 months, or are expected to in the next 30 days. Voluntary registration is possible above AED 187,500. These are the thresholds at the time of writing.
How quickly do I have to apply?
Within 30 days of the obligation arising. Late registration carries an AED 10,000 penalty at the time of writing, and VAT is still due on supplies from the date you should have registered.
Do free zone companies need to register for VAT?
Yes, on the same thresholds as mainland businesses. Some supplies of goods within designated zones are treated as outside the UAE for VAT, but services and most other supplies are taxed normally.
What is a VAT tax group?
Two or more UAE-resident companies under common control can register as a single taxable person. Supplies between members are generally ignored for VAT, one return is filed, and every member is jointly liable for the group’s VAT.
When do I need to deregister?
Within 20 business days of stopping taxable supplies, or of your supplies over 12 months falling below the voluntary threshold. You may also be able to deregister if they fall below AED 375,000, subject to conditions.
Will I need e-invoicing?
Most businesses will. Those with revenue of AED 50 million or more go live on 1 January 2027 and most others on 1 July 2027 (at the time of writing), through an accredited service provider. Sales to consumers are outside the system for now.
Related
Often needed alongside this.
The equivalent in our other countries
Speak with a consultant
Talk to us about vAT Registration.
Pick the closest match and we’ll take it from there. You’ll get a written scope and fee before any work begins.
Or use our three-step guide, or email hello@fiscorra.com