Standard-rated
- VAT rate
- 5%
- Examples
- Most goods and services, commercial property, hotel stays, professional services
- Counts toward threshold?
- Yes
- Input tax recoverable?
- Yes
VAT Registration in UAE & Dubai
UAE businesses must register for VAT once taxable supplies and imports exceed AED 375,000 in 12 months, and may register voluntarily from AED 187,500. SGA World handles VAT registration on the FTA EmaraTax portal for mainland, free zone and non-resident businesses in Dubai and Abu Dhabi, from the threshold check to the Tax Registration Number.
- Ministry of Economy and Tourism approved auditor
- 500+ clients
- Dubai & Abu Dhabi
SGA World Auditing Accounting LLC SPC helps mainland, free zone and non-resident businesses in Dubai, Abu Dhabi and across the UAE register for VAT correctly and on time, so you avoid penalties and can recover input tax from day one.
Whether you have crossed the mandatory threshold, want to register voluntarily, or need to work out Designated Zone treatment for a free zone company, our tax team manages the whole EmaraTax process for you: threshold check, documents, application, FTA queries and your Tax Registration Number (TRN).
- Mandatory VAT registration threshold
- AED 375,000
- Voluntary registration threshold
- AED 187,500
- To apply after crossing the threshold
- 30 days
- Standard UAE VAT rate
- 5%
At a glance
VAT Registration: Key Facts
- Mandatory: taxable supplies and imports above AED 375,000 in 12 months.
- Voluntary: from AED 187,500 of supplies or taxable expenses.
- Deadline: apply within 30 days of crossing the threshold.
- Late penalty: AED 10,000 plus the VAT you should have charged.
- Cost: the FTA charges no fee; it is done on EmaraTax.
- Result: a 15-digit TRN that must appear on every tax invoice.
UAE VAT basics
What Is VAT Registration in the UAE?
VAT registration is how a business obtains a Tax Registration Number (TRN), a 15-digit number issued by the Federal Tax Authority (FTA). The TRN authorises the business to charge 5% VAT on its taxable supplies and to recover the VAT it pays on business purchases.
Registration is free: the FTA charges no fee, and the whole process runs online on the EmaraTax portal. Once registered, the business must issue tax invoices, file VAT returns and keep records for at least five years.
Who needs a TRN
Who Must Register for VAT in the UAE?
Registration depends on the value of your taxable supplies and imports over a rolling 12 months, not the calendar year.
- Mandatory: taxable supplies and imports above AED 375,000 in the last 12 months, or expected to exceed it in the next 30 days
- Voluntary: supplies, imports or taxable expenses above AED 187,500, useful for start-ups recovering set-up VAT
- Non-residents: must register from the first taxable supply in the UAE if no UAE customer accounts for the VAT, with no threshold
- Free zone companies: the same thresholds apply; free zone status is not a VAT exemption
Compare your options
Mandatory vs Voluntary VAT Registration
| Factor | Mandatory registration | Voluntary registration |
|---|---|---|
| Trigger | Taxable supplies and imports above AED 375,000 in 12 months (or expected in the next 30 days) | Taxable supplies, imports or taxable expenses above AED 187,500 |
| Deadline to apply | 30 days from crossing the threshold | No deadline; apply when it benefits the business |
| Penalty for missing the deadline | AED 10,000 plus VAT due from the date registration should have taken effect | Not applicable |
| Typical business | Established trading and service companies | Start-ups with high set-up costs and businesses close to the threshold |
| Input VAT recovery | Yes, from the effective registration date | Yes, from the effective registration date |
| Can it be cancelled? | Only if supplies fall below AED 187,500 or stop | Yes, but generally not within the first 12 months |
Thresholds and penalties per Federal Decree-Law No. 8 of 2017 and Cabinet Decision No. 129 of 2025 (effective 14 April 2026).
Calculating the threshold
What Counts Toward the AED 375,000 Threshold?
The FTA looks at the total value of your taxable supplies and imports over the last 12 months. Getting this calculation right is the most important step of the registration.
Included in the calculation
- Standard-rated (5%) sales of goods and services
- Zero-rated supplies, such as qualifying exports, even though no VAT is charged on them
- Imports of goods and services that would be taxable if supplied in the UAE
- Supplies made by related parties where the FTA treats them as one business
Excluded from the calculation
- Exempt supplies, such as residential rent and certain financial services
- One-off sales of capital assets, such as a company vehicle or equipment
- Supplies that are outside the scope of UAE VAT
Example
A Dubai trading company sells AED 300,000 of goods locally and exports AED 120,000. Its taxable supplies are AED 420,000, because zero-rated exports count, so it must register within 30 days, even though most of its customers are abroad.
Supplies and rates
Standard-Rated, Zero-Rated and Exempt Supplies
How your sales are classified decides both the threshold calculation and how much input tax you can recover.
Zero-rated
- VAT rate
- 0%
- Examples
- Exports outside the GCC, international transport, certain education and healthcare, investment precious metals, first sale of new residential property
- Counts toward threshold?
- Yes
- Input tax recoverable?
- Yes
Exempt
- VAT rate
- No VAT
- Examples
- Some financial services, residential rent after the first supply, bare land, local passenger transport
- Counts toward threshold?
- No
- Input tax recoverable?
- No
Out of scope
- VAT rate
- Not applicable
- Examples
- Salaries, dividends, certain Designated Zone goods movements
- Counts toward threshold?
- No
- Input tax recoverable?
- Depends on the purchase
Classification under Federal Decree-Law No. 8 of 2017 on VAT and its Executive Regulations (Cabinet Decision No. 52 of 2017).
VAT Registration for Free Zone Companies
Free zone status does not exempt a company from VAT registration. A free zone company must register once it crosses the same AED 375,000 threshold that applies on the mainland. What changes is how some goods transactions are treated, not whether registration is required.
SGA World handles VAT registration for companies in DMCC, IFZA, Meydan Free Zone, Dubai Airport Free Zone (DAFZA), RAKEZ, SAIF Zone, Abu Dhabi Global Market (ADGM), Masdar City and other free zones, as well as UAE mainland companies.
Designated Zones vs other free zones
Only certain fenced, customs-controlled free zones listed under Cabinet Decision No. 59 of 2017 are Designated Zones, such as JAFZA, DAFZA and SAIF Zone. Inside a Designated Zone, some supplies of goods can be outside the scope of VAT. In every other free zone, normal VAT rules apply exactly as on the mainland, and most services are taxable even inside a Designated Zone.
Designated Zones
How VAT Applies to Goods in a Designated Zone
- Imported into a Designated Zone from outside the UAE
- Outside the scope of VAT on entry. Keep: customs entry documents
- Moved between two Designated Zones
- Generally outside the scope of VAT. Keep: customs transfer documents
- Moved from a Designated Zone to the UAE mainland
- Treated as an import; 5% VAT is accounted for by the importer. Keep: customs declaration and import VAT records
- Exported from a Designated Zone outside the UAE
- Zero-rated. Keep: official export evidence
- Services supplied in or from a Designated Zone
- Taxable in the same way as on the mainland. Keep: tax invoices
Treatment depends on customs conditions being met. Misclassifying these movements is one of the most common VAT errors we see among free zone clients.
Registration checklist
Documents Required for VAT Registration
We send you a short checklist and prepare the turnover calculation from your accounting records. For most companies you will need:
- Trade licence copy (mainland or free zone)
- Passport and Emirates ID of the owners and authorised signatory
- Memorandum or Articles of Association
- Proof of business address (tenancy contract or Ejari)
- Bank account details (IBAN letter)
- Turnover evidence, such as financial statements, invoices or a signed declaration
- Customs registration number, if the business imports or exports goods
How we register you
How to Register for VAT on EmaraTax, Step by Step
Step
Threshold assessment
We confirm whether registration is mandatory, voluntary or not yet required, including any Designated Zone points.
Step
Document preparation
We collect your trade licence, ownership and financial documents and prepare the turnover calculation.
Step
EmaraTax application
We complete and submit the VAT registration form on the FTA's EmaraTax portal for you.
Step
FTA review
We answer any FTA queries. The FTA aims to decide within 20 business days; complete files are often approved sooner.
Step
TRN issued
You receive your Tax Registration Number and VAT registration certificate on EmaraTax.
Step
Ongoing compliance
You start charging VAT and issuing tax invoices, and we can file your VAT returns each period.
VAT support desk
Register for VAT Without the Paperwork
We check whether you must register, prepare every document and manage your EmaraTax application until the FTA issues your TRN.
What we handle
- Threshold check and effective date
- Document checklist and turnover calculation
- Complete EmaraTax application
- Replies to FTA queries
- TRN, VAT certificate and first return set-up
What Happens After You Register?
As a taxable person, registration starts your ongoing VAT obligations from the effective registration date shown on your certificate.
- Charge 5% VAT on standard-rated supplies and show your TRN on every tax invoice
- Issue tax invoices within 14 days of the supply
- File VAT returns on EmaraTax, usually quarterly, within 28 days after each tax period ends
- Pay any VAT due by the same 28-day deadline, and recover input tax on eligible purchases against your output tax
- Keep accounting and VAT records for at least five years
E-invoicing is coming
Under Ministerial Decisions No. 243 and 244 of 2025, the UAE is introducing a mandatory e-invoicing system for B2B and B2G invoices. Businesses can adopt it voluntarily from 1 July 2026. It becomes mandatory from 1 January 2027 for businesses with annual revenue of AED 50 million or more, which must appoint an Accredited Service Provider by 31 October 2026, with smaller businesses following in later phases. Read our guide to e-invoicing in the UAE.
Avoid penalties
VAT Registration Penalties in the UAE
| Violation | Penalty |
|---|---|
| Late VAT registration (more than 30 days after crossing the threshold) | AED 10,000, plus the VAT that should have been charged |
| Failing to apply for deregistration on time | AED 1,000, plus AED 1,000 for each further month, up to AED 10,000 |
| Late VAT return (first time) | AED 1,000 (AED 2,000 if repeated within 24 months) |
| Late payment of VAT | 14% per year, calculated monthly (from 14 April 2026) |
Penalties under Cabinet Decision No. 129 of 2025, effective 14 April 2026. A business must apply to deregister within 20 business days of stopping taxable supplies or falling below AED 187,500.
Cancelling a TRN
VAT Deregistration in the UAE
A registered business must apply to cancel its VAT registration within 20 business days if it stops making taxable supplies, or if its taxable supplies over the last 12 months fall below the voluntary threshold of AED 187,500. A business that registered voluntarily can apply to deregister when its supplies drop below AED 187,500, but generally not within 12 months of registration.
How deregistration works
- File all outstanding VAT returns and pay any VAT due
- Submit the deregistration application on EmaraTax with supporting evidence
- Account for VAT on remaining business assets and stock in the final return
- Receive the FTA's approval; the TRN is cancelled from the approved date
Missing the 20-day deadline triggers a penalty of AED 1,000, plus AED 1,000 for each further month, up to AED 10,000.
VAT Registration and Corporate Tax
VAT and corporate tax are separate registrations on EmaraTax, with different thresholds: most UAE companies must register for corporate tax regardless of turnover, while VAT registration depends on taxable supplies. The figures you report in VAT returns and in the corporate tax return should reconcile, because the FTA compares them. We prepare both from the same bookkeeping records, so your revenue, input tax and taxable income stay consistent.
Common VAT Registration Mistakes
- Assuming free zone status means VAT exemption, and registering late as a result
- Using the calendar year instead of a true rolling 12 months for the threshold
- Leaving zero-rated exports out of the threshold calculation
- Treating Designated Zone goods movements as VAT-free without the customs documents to support it
- Issuing invoices without a TRN after approval, before accounting software is updated
- Choosing an effective registration date that misses VAT recovery on earlier purchases
Glossary
VAT Registration Terms Explained
- TRN
Tax Registration Number: the 15-digit number the FTA issues to a VAT-registered business.
- EmaraTax
The FTA's online portal for VAT and corporate tax registration, returns and payments.
- Taxable supplies
Sales of goods and services subject to VAT at 5% or 0%.
- Zero-rated supply
A taxable supply charged at 0%, such as an export; input tax can be recovered.
- Exempt supply
A supply with no VAT, such as residential rent; related input tax cannot be recovered.
- Designated Zone
A fenced, customs-controlled free zone where some goods movements are outside the scope of VAT.
- Input tax
VAT paid on business purchases that a registered business can recover.
- Effective registration date
The date from which VAT obligations start, shown on the VAT certificate.
Why SGA World
Why Choose SGA World for VAT Registration?
Offices in Dubai and Abu Dhabi
A local team in Business Bay, Dubai, with a branch in Abu Dhabi, for mainland and free zone clients across the UAE.
FTA representation
Tax agent services through our associate office, Saif Chartered Accountants, an FTA-registered tax agency.
End-to-end EmaraTax handling
We prepare and submit the application and answer FTA queries, so you do not need to learn the portal.
Support after registration
VAT return filing, e-invoicing readiness, VAT health checks and voluntary disclosures.
Location: Dubai
Dubai Office
Our Dubai office in The Exchange Tower, Business Bay is the central hub for our audit, accounting and tax services across the UAE.
Dubai
Office 1923, The Exchange Tower, Business Bay, Dubai
Abu Dhabi
Khalidiya Towers M-B6, W10, Al Bateen, Al Khalidiyah, Abu Dhabi
Talk to an auditor
Tell us your company type, jurisdiction and deadline. We will confirm the scope, timeline and fee.
- WhatsApp us+971 50 627 3556
- Call us+971 4 570 1795
- Email us[email protected]
- Book an appointmentChoose a time that suits you
Prefer a form? Send us a detailed enquiry.
Who prepared this page
Written and reviewed by SGA World's audit and tax team
This guide is prepared by chartered accountants at SGA World Auditing Accounting L.L.C S.P.C in Business Bay, Dubai, a Ministry of Economy and Tourism approved audit firm, and checked against Federal Tax Authority legislation and guidance. It is reviewed whenever the rules change.
- Last reviewed 2 October 2026
- Chartered accountants from India and the UK
- FTA representation through Saif Chartered Accountants
Have a question about your company?
Tell us your activity, jurisdiction and deadline. A chartered accountant will reply.
Ask an expertFrequently asked questions
VAT Registration in the UAE – FAQs
Short answers to the questions UAE businesses ask us most. Still unsure?
Talk to our team01.What is the VAT registration threshold in the UAE?
Registration is mandatory when taxable supplies and imports exceed AED 375,000 over a rolling 12-month period, or are expected to exceed it in the next 30 days. Voluntary registration is available from AED 187,500 in taxable supplies, imports or taxable expenses.
02.How long does VAT registration take in the UAE?
The FTA aims to decide on an application within 20 business days of receiving a complete file. Well-prepared applications are often approved sooner; missing or inconsistent documents lead to queries and delays.
03.How much does VAT registration cost?
The FTA does not charge any fee for VAT registration on EmaraTax. Professional fees apply only if you use an adviser to prepare and manage the application.
04.What documents do I need to register for VAT?
Usually the trade licence, passports and Emirates IDs of the owners and authorised signatory, the Memorandum of Association, proof of address, bank account details, turnover evidence and, for importers or exporters, the customs registration number.
05.What is the penalty for late VAT registration?
A business that does not apply within 30 days of crossing the mandatory threshold faces an AED 10,000 penalty, plus the VAT it should have charged from the date registration should have taken effect.
06.What is a TRN?
A Tax Registration Number (TRN) is the 15-digit number the FTA issues to a VAT-registered business. It must appear on every tax invoice and is used for all VAT filings and payments.
07.What is the difference between zero-rated and exempt supplies?
Zero-rated supplies, such as exports, are taxable at 0%: they count toward the registration threshold and the supplier can recover input tax. Exempt supplies, such as residential rent, carry no VAT, do not count toward the threshold and the related input tax cannot be recovered.
08.Do free zone companies need to register for VAT?
Yes. The same AED 375,000 mandatory and AED 187,500 voluntary thresholds apply. Designated Zone status only changes how certain goods transactions are treated, not whether registration is required.
09.Do non-resident businesses need to register for VAT in the UAE?
Yes, if they make taxable supplies in the UAE and no UAE customer accounts for the VAT under the reverse charge mechanism. No threshold applies to non-residents.
10.When must a business deregister for VAT?
Within 20 business days of stopping taxable supplies or of its taxable supplies over 12 months falling below AED 187,500. All returns must be filed and VAT paid before the FTA approves the cancellation.
11.Can a start-up with no sales register for VAT?
Yes. A new company can register voluntarily if its taxable expenses exceed AED 187,500, so it can recover the VAT paid on set-up costs such as rent, fit-out and professional fees.
12.Can related companies register as a single VAT group?
Yes. Two or more UAE companies under common control, including mainland and free zone companies, can apply to register as a VAT group under Article 14 of the VAT Decree-Law and file one consolidated return.
13.When does e-invoicing become mandatory in the UAE?
Voluntary adoption starts on 1 July 2026. E-invoicing becomes mandatory from 1 January 2027 for businesses with annual revenue of AED 50 million or more, with smaller businesses following in later phases. B2C invoices are not yet in scope.
