Ahmed AbodaifPartner & Co-Founder
Key takeaways
- Registration is mandatory once taxable supplies and imports exceed AED 375,000 in the last 12 months, or are expected to in the next 30 days.
- You may register voluntarily from AED 187,500 of supplies or expenses.
- Apply within 30 days of crossing the threshold — late registration costs AED 10,000.
- After registration: 5% tax invoices with your TRN, and returns within 28 days of each tax period.
Do you need to register? The thresholds
| Registration | Threshold |
|---|---|
| Mandatory | Taxable supplies and imports above AED 375,000 in the previous 12 months — or expected to exceed it in the next 30 days |
| Voluntary | Taxable supplies and imports, or taxable expenses, above AED 187,500 |
Taxable supplies include both standard-rated (5%) and zero-rated sales. Exempt supplies — such as residential rent and certain financial services — do not count towards the threshold.
Check the test every month on a rolling 12-month basis, not only at year-end. A single large contract can trigger the "next 30 days" rule before your historical sales reach the threshold.
Deadline and penalty
You must apply within 30 days of the date you exceed — or expect to exceed — the mandatory threshold. The penalty for registering late is AED 10,000. You are also liable for the VAT you should have charged from your effective registration date, even if you did not collect it from customers.
Documents you will need
- Trade licence (and any other licences for your activity).
- Passport and Emirates ID of the owner(s) and the manager or authorised signatory.
- Memorandum and Articles of Association, partnership agreement or other constitutional document.
- Proof of authority for the person signing (for example a power of attorney or board resolution).
- Bank account details — an IBAN letter from your bank.
- Evidence of turnover: sales invoices, financial statements or a signed turnover declaration, plus expected imports and exports.
- Customs registration details if you import or export goods.
- Contact details and the address of your place of business.
Step-by-step on EmaraTax
- Sign in to EmaraTax, the FTA's online portal, and create or select the taxable person profile.
- Start a VAT registration application.
- Enter entity details, business activities, related parties, and turnover and import/export figures.
- Upload the supporting documents.
- Review and submit. The FTA may ask for more information — answer quickly, because the clock stops while it waits.
- Once approved, you receive your Tax Registration Number (TRN) and VAT certificate, with your effective registration date.
A complete application is usually processed in around 20 working days; incomplete ones take longer.
After registration: your ongoing obligations
- Issue tax invoices showing your TRN and 5% VAT where it applies. Use our VAT calculator to add or extract VAT.
- File VAT returns and pay within 28 days after the end of each tax period — usually quarterly, sometimes monthly.
- Keep records and tax invoices for at least five years.
- Prepare for e-invoicing: most businesses must go live by 1 July 2027 — see our e-invoicing guide.
Special cases
- Only zero-rated sales? You can apply for an exception from registration — but you then cannot recover input VAT.
- Several related companies? Companies under common control can apply to register as a VAT group and file one return.
- Stopped trading or fell below the threshold? Deregistration has its own deadlines and penalties — deal with it as soon as it applies.
How Business Future CPA helps
We check whether and when you must register, prepare and submit the application, answer FTA queries, and then keep your VAT returns accurate and on time. See our VAT and Corporate Tax services, and the VAT changes that took effect in 2026.
Frequently asked questions
What is the VAT registration threshold in the UAE?
AED 375,000 of taxable supplies and imports over the previous 12 months, or expected in the next 30 days. Voluntary registration is possible from AED 187,500.
How long does VAT registration take?
A complete application is usually processed in around 20 working days. Missing documents or FTA queries extend the timeline.
What is the penalty for late VAT registration?
AED 10,000, in addition to the VAT that should have been accounted for from the effective registration date.
How often do I file VAT returns?
Usually quarterly, sometimes monthly. Returns and payment are due within 28 days after the end of each tax period.
Official sources: Federal Tax Authority (FTA)
This guide is general information based on UAE legislation and official announcements as at the date shown. It is not tax or legal advice for your specific situation — talk to us before you act.