VAT Registration UAE: Process, Cost & Requirements
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Introduction
VAT was implemented in the UAE from 1 January 2018 at a rate of 5 per cent across most goods and services. This VAT registration in UAE is compulsory for all the businesses who meet a particular turnover. The FTA mandates businesses whose taxable supplies and imports surpass AED 375,000 over the previous 12 months to register for VAT. Companies below this threshold may opt for voluntary registration, when their sales exceed AED 187,500.
In practice, that means the overwhelming majority of Emirati companies and foreign ones trading locally need to register when their trade hits those thresholds. Registering means you can charge VAT and recover VAT input on purchases, as well as avoid penalties for non-compliance.
Under VAT, firms have to charge 5 per cent on sales, keep clear records, issue receipts, and file regular returns. Whether you do business in Dubai, Sharjah or anywhere else for that matter, the latitude of the UAE VAT registration is the same across the country following the federal regulations, thus VAT Dubai registration and VAT registration Sharjah are essentially the same. Regulations and paperwork can be complex and lead to legal or tax bites if not properly followed, a reason many companies will want guidance from experts. For instance, Dubai Business and Tax Advisors provides end to end assistance to understand VAT registration criteria and compliance.
Who Must Register for VAT in the UAE
Mandatory Registration:
UAE businesses and international companies doing business in the UAE must monitor their turnover closely. Mandatory registration applies if your annual taxable supplies and imports exceed AED 375,000. This covers all sales of goods or services subject to VAT, plus imports. Even if you have not yet reached this total but expect to within the next 30 days, you must register immediately.
Voluntary Registration:
If your taxable turnover is below AED 375,000 but above AED 187,500, you have the option of voluntary registration. Voluntary registration can be advantageous for startups or smaller firms that want to recover VAT on their inputs. It also signals credibility to suppliers and partners. Non-resident companies (foreign businesses with no UAE branch) have special rules: any foreign business making taxable supplies in the UAE generally must register regardless of turnover, due to law amendments. In short, most businesses that operate in the UAE commercial market need to register for VAT if they cross these thresholds.
Mandatory vs Voluntary Registration
Some activities are exempt from VAT (for example, local passenger transport and certain financial services) and do not require registration at all. Also, purely 0%-rated businesses (exporters outside GCC) might apply for an exception.
1- Mandatory VAT registration is triggered once a UAE business’s taxable supplies exceed AED 375,000 in a 12-month period. The company must complete its VAT registration online within 30 days.
2- Voluntary VAT registration applies when taxable supplies exceed AED 187,500 but remain under AED 375,000. Businesses may register voluntarily to claim input VAT, even though it is not strictly required.
VAT Registration Process in UAE
VAT registration in the UAE is done entirely online via the Federal Tax Authority’s (FTA) e-Services portal (EmaraTax). Any eligible business can register online via EmaraTax. The FTA also provides user guides and helps videos to assist with the VAT registration procedure in UAE. The process is designed to be straightforward, but it requires careful preparation of information and documents. In general terms, the steps are:
1- FTA Account Creation: Visit the FTA website and create an e-Services account. You must enter a valid email and choose a secure password. The FTA will send a verification email; follow the link to activate your account.
2- Application Submission: Log into the portal and choose the VAT registration service. You will fill out a form with details about your business (trade name, activities, estimated turnover, etc.). Provide accurate financial figures for taxable sales and imports.
3- Document Upload: Upload the required documents (see below). The system allows you to attach PDFs or images. Make sure all files are clear and match your application data.
4- Declaration and Payment: Review and declare all information is correct. (Note: official VAT registration is free of charge. The FTA does not levy a registration fee for VAT, though a certified copy of the VAT certificate can be obtained for a small administrative charge.)
5- Receive Certificate: After submission, the FTA will process your application. Assuming all data and docs are in order, you will receive a VAT Registration Certificate and a VAT Tax Registration Number (TRN). The TRN is a unique 15-digit number (kind to a VAT number in other countries).
Documents Required for VAT Registration
Before applying, compile all VAT registration documents required UAE. These documents are largely consistent across sources. Having these ready greatly speeds up the online process. Dubai Business and Tax Advisors can assist by reviewing your documentation to ensure completeness before submission, helping you avoid common errors. The key paperwork typically includes:
1- Trade License and Commercial Registration: A copy of your current UAE trade license (or registration certificate) for the company.
2- Company Incorporation Certificate: For corporate entities, include the certificate of incorporation.
3- Articles of Association / Partnership Agreement: To show the company’s legal structure and ownership.
4- Manager/Owner Details: Passport and Emirates ID copies of owners or authorised signatories.
5- Contact Information: Business address, PO Box, email and mobile number for the company and key personnel.
6- Bank Account Information: A bank letter or statement confirming the company’s account details.
7- Financial Records: Past financial statements, balance sheets or profit/loss figures to support turnover claims.
8- Expected Turnover Details: An estimate of sales and purchases over the next 30 days (to confirm if you will cross the threshold).
9- Customs Code (if applicable): A custom registration code if the business imports goods.
VAT Tax Registration Number (TRN)
Once approved, the FTA issues your Tax Registration Number (TRN), which serves as your VAT number in the UAE. It is a unique 15-digit code that you must quote on all VAT invoices and returns. The TRN is important for verifying a supplier’s VAT status – the FTA portal even has a TRN verification tool. Receiving the TRN is the final step of registration: “Once approved, you will receive your VAT certificate, which includes your unique Tax Registration Number (TRN).” This certificate is proof that your business is a registered VAT taxable person in the UAE.
Deadlines and Timeframes
The FTA requires that VAT registration be completed within 30 days of exceeding the threshold. In practice, this means once your business’s taxable turnover (or expected turnover in the next month) goes beyond AED 375,000, you have 30 days to apply. The same 30-day rule applies after reaching the voluntary threshold of AED 187,500, if you choose to register.
There is no fixed “last date” for registration unless you consider the 30-day window as a deadline. As Emirabiz explains, “the time limit for VAT registration … depends on when the company gets to the threshold.” To avoid penalties, make sure to track your rolling turnover and prepare to register promptly when the limit is reached.
Once the application is submitted online, processing is generally quick if all information is correct. Many businesses receive their TRN within a few working days. The FTA has reported that the initial setup (filling the form) can take as little as 45 minutes if all data is on hand, although verification may take longer depending on the workload. In any case, timely registration not only keeps you compliant but also allows you to start charging VAT and claiming input tax credits legally.
VAT Registration Penalties
Failing to register on time incurs significant penalties. The FTA penalty for late VAT registration is AED 10,000. This means if you exceed AED 375,000 in taxable turnover and do not register within 30 days, you will be fined AED 10,000. (Previously the fine was AED 20,000, but it has been reduced to AED 10,000 under recent regulations.) Alaan’s VAT guide confirms “a delay in VAT registration in the UAE can result in a penalty of AED 10,000”.
Beyond registration itself, the FTA also imposes penalties for late filing or payment of VAT, but those are separate issues covered under VAT returns. For registration, the key takeaway is registered on time to avoid a fixed fine. Dubai Business and Tax Advisors emphasises that non-compliance “attracts penalties,” so proactive registration is crucial. Their experts can help ensure deadlines are met so you never face these fines.
Cost of VAT Registration in the UAE
One of the benefits of UAE VAT is that official registration is free. The FTA does not charge a fee for applying for a VAT number. As Shuraa Tax notes, “in the UAE, registering for VAT is free.” You can complete the online application at no cost. (A minor exception: if you want an attested copy of your VAT certificate, a small fee of around AED 250 may apply for notarisation. But this is optional.)
Some other costs may be incurred indirectly. For example, if you engage a professional firm to prepare and file your VAT application, they will charge service fees. These consultancy fees vary by provider and complexity. Dubai Business and Tax Advisors offers VAT registration services for a transparent fee, tailored to the needs of each client. While the state does not charge, choosing a reputable advisor like DBTA can save time and prevent mistakes that could otherwise cost you in fines or missed claims. In summary, the VAT registration limit (threshold) and VAT online registration in UAE process are not costly per se – the main investment is in gathering information and possibly professional support.
VAT Registration in Dubai and Sharjah
The UAE’s VAT law is federal, so all Emirates follow the same rules. There is no separate “Dubai VAT” or “Sharjah VAT” system. Whether you operate in Dubai, Sharjah, Abu Dhabi, or any other Emirate (mainland or qualifying free zone), you register on the FTA portal and apply the same thresholds. Local nuances only arise in how businesses organise their accounts or which PRO services they use, but the core VAT registration procedure in UAE is identical across the country.
Therefore, residents of Sharjah or businesses based in Dubai’s free zones have the same responsibilities and must meet the same VAT registration requirements. It’s common for companies in all emirates to seek specialised help. For example, firms like Dubai Business and Tax Advisors serve clients throughout the UAE, not just Dubai. DBTA’s team understands both VAT UAE registration and local business culture in each emirate, making them an excellent resource for companies in any part of the country.
Dubai Business and Tax Advisors Services
Dubai Business and Tax Advisors (DBTA) is a leading tax and advisory firm in the UAE, well-versed in VAT compliance. Their dedicated VAT advisory services cover the entire registration and compliance journey. By choosing DBTA, businesses benefit from personal, professional service: “Our experienced team provides personalized advice for your specific business needs.” The firm’s experts are intimately familiar with Emirates tax law and the FTA’s requirements, ensuring a smooth VAT registration UAE online process. Their local presence in Dubai gives rapid support; customers can book meetings or consult in person. For businesses seeking support, DBTA offers:
1- VAT Advisory and Registration Support: DBTA experts guide you through business VAT registration, ensuring you meet all Federal Tax Authority requirements. They help determine eligibility (mandatory or voluntary) and prepare your submission.
2- VAT Compliance and Return Filing: After registration, DBTA handles ongoing tasks like filing quarterly VAT returns and reconciling input/output taxes. Their team “takes care of the entire process” so you avoid missed deadlines.
3- VAT Health Check: DBTA performs audits of your VAT records and processes to identify gaps or errors before the FTA does. This proactive review helps you stay compliant and minimise risks of audits or fines.
4- Tax Strategy and Planning: Beyond registration, DBTA advises on optimising your tax strategy. They keep “up to date with the latest changes in VAT legislation,” helping you “make informed decisions and optimise your tax strategy”.
5- Business Licensing and PRO Services: As part of their broader suite, DBTA also assists with trade licences, visas, and other regulatory services. This means they can align you VAT compliance with your overall business setup in Dubai or the UAE.
Conclusion: Choose Dubai Business and Tax Advisors
Getting through the VAT registration in UAE process takes an eye for detail and follows closely the federal law. Registration is not complicated, with the FTA’s EmaraTax portal being straightforward to use, but missing a deadline to hand in incomplete paperwork comes at a stiff price. The good news is that registering for VAT is completely free of charge and again, you can do it online if you have all of the right information available.
Partner with a specialist for businesses in the UAE this is often the best way forward. Dubai Business and Tax Advisors provide a hand holding right from evaluating turnovers as per UAE VAT registration threshold to filing the final application and to ensure its compliance going ahead. Their staff keep up to date with changing rules and regulations and can answer any question – whether that’s the vat registration user guide, deadlines or post-registration requirements.
Put simply, if your company is coming close to the VAT threshold, or you’re concerned about the VAT registration process, then seeking advice from professionals such as DBTA not only saves you valuable time but also keeps you on the right side of the law. Free yourself to do Business by having DBTA as your provider of this essential financial service so you can get registered for VAT properly and devote your time to your business with the confidence that your tax affairs are in safe hands.
FAQs
The UAE VAT registration process is relatively simple and user-friendly – applications are made online, via the FTA’s e-services portal, EmaraTax. Here’s how you can proceed:
1- Register for EmaraTax Account: Go to the FTA portal and register for an account with your email address and mobile phone number.
2- Accessing the Form VAT Registration Form: Sign in to your EmaraTax account and go to the VAT registration page.
3- Fill Up and Submit the “Apply Now” Form: Provide your company and trade license details, contact information, and financial information in the application form.
4- Upload Documents: You must attach supporting documents like trade license, Emirates ID, copies of passport and bank account.
5- Review & Submit: Review all information for accuracy before submitting your application.
Your application will then be scrutinized and if approved, you will be issued your VAT Tax Registration Number (TRN), which is confirmation that your VAT registration UAE is now in process.
Here is how you can register VAT in UAE:
1- Check Eligibility: Check if your business is eligible for enrollment, there is a VAT registration threshold UAE of AED 375,000 for mandatory registration and AED 187,500 for voluntary registration.
2- Get Your Documents Ready: Prepare the documents, such as trade license, passport copies, Emirates ID, and other financials.
3- Access EmaraTax Portal: Register in the FTA’s EmaraTax portal.
4- Fill out the Registration Form: Tell us extensively about your business, finances and how to reach you.
5- Apply: Once the entries have been reviewed for errors, submit your application and uploaded supportive documents.
Once the application is successfully submitted, the FTA will review and process the submitted application and you will receive your VAT Tax Registration Number, thus concluding your VAT Dubai registration
There are several steps to the VAT Registration Process in UAE:
1- Eligibility Check: Check whether your business has crossed the AED 375,000 mandatory VAT registration threshold or the AED 18750, voluntary threshold.
2- Document Arrangement: Gather all required documents including trade license, copies of Emirates ID and passport, bank statements and financial statements.
3- How to Create EmaraTax Account: To avail yourself of the VAT registration services, you must register yourself on the FTA’s EmaraTax portal.
4- Form Submission: Complete the VAT application form with correct business information and attach the documents.
5- Application and Review: Create your application for review. FTA normally takes 20 business days to review applications.
Once approved, you will receive your VAT Tax Registration Number which verifies that you have been successfully registered. This procedure keeps you in the bounds of tax laws of the UAE and provides you with a platform for legal operations.
It is free to register your company for VAT with the FTA EmirateTax portal in the UAE. But if you need a notarized copy of your VAT registration certificate, the amount of AED 500 will be charged.
Registration does not cost anything to begin with, but businesses are likely to approach professional services for help with the process, that is likely to add to the costs. Such a service can help to ensure stability and compliance, potentially saving time and preventing penalties.
It is worth noting that failure to register for VAT when it is essential to do so could attract penalties, with a fine of AED 10,000. Thus, your organisation needs to be registered in the UAE on time and accurately.
About the Author:
AURANGZAIB CHAWLA
As CEO of DBTA, Aurangzaib Chawla advises globally mobile businesses and individuals on cross-border tax planning and structuring. With expertise spanning the UK, UAE, and wider GCC, Zaib helps clients minimise double taxation, protect assets, and achieve long-term financial efficiency while staying fully compliant.
Planning to launch in Dubai or the UAE?
Let’s talk about how to structure your business for growth the smart, compliant, and tax-efficient way
About the Author:
AURANGZAIB CHAWLA
As CEO of DBTA, Aurangzaib Chawla advises globally mobile businesses
and individuals on cross-border tax planning and structuring. With expertise spanning the UK, UAE, and wider GCC, Zaib helps clients minimise double taxation, protect assets, and achieve long-term financial efficiency while staying fully compliant.
Planning to launch in Dubai or the UAE?
Let’s talk about how to structure your business for growth the smart, compliant, and tax-efficient way.
