A UAE business must register for VAT when its taxable supplies and imports exceed AED 375,000 in the past 12 months, or are expected to within the next 30 days. You apply on the FTA’s EmaraTax portal within 30 days of crossing the threshold. Registration is free, takes about 20 business days, and applying late costs AED 10,000. Voluntary registration opens at AED 187,500.
UAE VAT has applied at 5% since 1 January 2018 under Federal Decree-Law No. 8 of 2017. Registration is where most compliance problems start. Some businesses count the wrong revenue, miss the 30-day window, or get stuck on a mismatched document. This guide covers who has to register, what counts toward the threshold, the deadlines, the documents, and the EmaraTax process step by step. It also covers what happens after you receive your Tax Registration Number (TRN) and how to deregister. The figures are current as of September 2026, including the penalty changes that took effect on 14 April 2026.
Who must register for VAT in the UAE?
Registration depends on the value of your taxable supplies and imports, not your total revenue and not your profit. The same federal rules apply in Dubai, Abu Dhabi, Sharjah and every other emirate, and to mainland and free-zone companies alike. There is no separate “Dubai VAT registration”.
| Your situation | Registration status | Deadline / rule |
|---|---|---|
| Taxable supplies + imports above AED 375,000 in the last 12 months, or expected to exceed it in the next 30 days | Mandatory | Apply within 30 days of becoming required to register |
| Taxable supplies + imports, or taxable expenses, above AED 187,500 (but below AED 375,000) | Voluntary (optional) | Apply any time; you must then stay registered at least 12 months |
| Non-resident business making taxable supplies in the UAE where no one else must account for the VAT | Mandatory, no threshold | Register before (or when) making the first supply |
| Only zero-rated supplies | Mandatory above AED 375,000, but you can request an exception | The FTA may exempt you from registration on application |
| Only exempt supplies (e.g. residential rent, bare land) | Not required | Exempt supplies do not count toward either threshold |
| Taxable supplies and expenses both below AED 187,500 | Cannot register | Keep monitoring the rolling 12-month total |
Mandatory registration: the two tests
You are required to register as soon as either test is met:
- The look-back test. Your taxable supplies and imports over the previous 12 months (a rolling period, not your calendar or financial year) exceeded AED 375,000.
- The look-forward test. You expect your taxable supplies and imports in the next 30 days alone to exceed AED 375,000. A single large contract can trigger this on day one of trading.
Example: a Dubai marketing agency invoices AED 28,000 a month. After 13 months its rolling 12-month total reaches AED 336,000, still below the threshold. It then signs a AED 60,000 retainer, which pushes the rolling total to AED 396,000. That month it crosses the threshold, and the 30-day application clock starts.
Voluntary registration: AED 187,500 on supplies or expenses
You may register voluntarily if your taxable supplies and imports or your taxable expenses exceed AED 187,500 over the past 12 months, or are expected to in the next 30 days. The expense route helps start-ups: a company fitting out an office or buying stock before its first sale can register, reclaim the 5% input VAT on those costs and invoice VAT-registered clients properly from the start. Once you register voluntarily, you cannot deregister within the first 12 months.
Non-resident businesses: no threshold
The AED 375,000 threshold only applies to UAE residents. A foreign business must register, whatever its turnover, if it makes taxable supplies in the UAE and no other person is obliged to account for the VAT on them. Common examples are a foreign company selling goods already located in the UAE to consumers, or a foreign software company selling to UAE consumers. When a UAE-registered business customer accounts for the VAT under the reverse charge, the foreign supplier usually does not need to register. Non-residents typically register and file through a UAE tax agent.
Who does not need to register
A business making only exempt supplies, such as a landlord renting residential flats on ordinary leases, never reaches the threshold, because exempt income does not count. A business making only zero-rated supplies, such as a pure exporter, can ask the FTA for an exception from registration. The trade-off is that it then cannot recover input VAT. See our full list of exempt and zero-rated supplies.
What counts toward the AED 375,000 threshold?
This is where most miscalculations happen. The threshold measures taxable activity, so you have to sort your income before you add it up.
| Include | Exclude |
|---|---|
| Standard-rated (5%) sales of goods and services in the UAE | Exempt supplies: residential rent and resale, bare land, local passenger transport, margin-based financial services |
| Zero-rated (0%) supplies: exports outside the GCC, international transport, qualifying education and healthcare, first sale of a new residential building | Out-of-scope income: salaries, dividends, supplies made wholly outside the UAE, transfer of a business as a going concern |
| Imports of goods and services you account for under the reverse charge | Income of a separate legal entity (unless you register together as a tax group) |
Sales you make at 0% still count. An exporter with AED 2 million of zero-rated sales is far above the threshold even though it never charges VAT. Our VAT registration threshold guide walks through the rolling calculation month by month, including mixed businesses.
Running the same activity through two related companies to keep each below AED 375,000 is the pattern the FTA looks for. If entities are commonly owned and controlled, assume the FTA will look at them together, and consider a tax group instead.
VAT registration deadline: when to apply and when VAT starts
You must submit your application within 30 days of the date you became required to register. That means 30 days from crossing the threshold under the look-back test, or from the date you first expected to cross it under the look-forward test. Waiting for the TRN does not protect you. The FTA assigns an effective date of registration, and output VAT is due on your taxable supplies from that date, even if you only receive the certificate weeks later.
In practice:
- Track the rolling 12-month total every month-end, and every time you sign a large contract.
- Once registration looks likely, add a VAT clause to new contracts (“prices are exclusive of VAT”) so you can pass the 5% on.
- If you have already missed the window, apply immediately with accurate historical turnover. Expect the AED 10,000 penalty, plus output VAT on the taxable supplies you made from the effective date. Correcting this before the FTA contacts you is always cheaper than being found in an audit.
Documents required for VAT registration in the UAE
EmaraTax asks for scanned copies, so gather them before you start. Every name, number and address must match the trade licence exactly. Mismatches are the most common reason the FTA sends an application back.
| Category | Documents |
|---|---|
| Legal existence | Valid trade licence (mainland or free zone) for the entity and each branch; Memorandum or Articles of Association, partnership agreement or equivalent |
| People | Passport and Emirates ID of the owners/partners and the authorised signatory; proof of authorisation (power of attorney or board resolution) if the signatory is not the owner |
| Turnover evidence | A signed and stamped turnover declaration or financial statements for the past 12 months; sample sales invoices; expected figures for the next 30 days (and supporting contracts if you rely on the look-forward test) |
| Imports and exports | Customs registration details and sample customs declarations, plus the names of the countries you trade with in the GCC |
| Banking | IBAN and bank name in the entity’s exact legal name (needed for refunds) |
| Contact | Registered address, business phone and an email address that someone checks daily |
Non-residents also need their home-country registration certificate and the details of their UAE tax agent. Tax groups need the documents for every member plus evidence of common control.
How to register for VAT in the UAE on EmaraTax (step by step)
All registrations go through EmaraTax, the FTA’s online portal. There is no government fee to register for VAT.
Create or sign in to your EmaraTax account
Sign up with an email address and password, or log in with UAE PASS. The account belongs to a person, and one account can manage several businesses.
Create the Taxable Person profile
Add the business (the legal entity) under your account. This profile is shared across VAT, Corporate Tax and Excise, so a company already registered for Corporate Tax will see it pre-filled.
Start the VAT registration application
Choose VAT and state whether the registration is mandatory or voluntary, with the date you crossed (or expect to cross) the threshold.
Complete each section
Entity details, trade licence and business activities, owners and authorised signatory, contact details, bank details, turnover figures, customs and GCC trading information.
Upload the documents and submit
Review the declaration and submit. Keep the application reference number.
Answer FTA queries quickly
The FTA aims to decide within about 20 business days. If it asks for more information, the clock effectively pauses until you respond.
Download the VAT certificate and TRN
Your 15-digit TRN and effective date of registration appear on the certificate. Put the TRN on every tax invoice from that date.
If you are unsure what the TRN is or how it differs from a “TIN” on foreign forms, see our guide to TIN vs TRN in the UAE.
Mainland, free zone, designated zone and non-resident businesses
- Mainland companies follow the standard thresholds and process above.
- Free-zone companies are treated like mainland companies for VAT. Being in a free zone does not exempt you from VAT registration.
- Designated zones are a specific list of free zones treated as outside the UAE for certain movements of goods under Cabinet decision. Services supplied from a designated zone are still taxable, so most designated-zone companies still count toward the threshold. Check whether your zone is designated before assuming any relief.
- Non-residents have no threshold (see above) and usually register through an FTA-registered tax agent.
Tax group VAT registration
Two or more legal persons can register together as a single tax group. To qualify, each must have a place of establishment or fixed establishment in the UAE, and they must be related parties, with one or more members controlling the others. The group files one VAT return under one TRN through a representative member. Supplies between members are generally disregarded, but every member is jointly liable for the group’s VAT. Grouping suits companies that trade heavily with each other or have one entity making exempt supplies. It is not automatic: you apply for it on EmaraTax.
Common reasons VAT registration applications are delayed
- Counting exempt income, such as residential rent, toward the threshold, or leaving out zero-rated exports and reverse-charge imports.
- Using a calendar or financial year instead of the rolling 12 months.
- An expired trade licence, or licence activities that do not match the activities declared.
- Names written differently across documents (“ABC Trading LLC” vs “ABC Trading L.L.C”).
- An unsigned or unstamped turnover declaration, or turnover figures that do not reconcile with the sample invoices.
- Bank details in a name other than the legal entity’s.
- Not replying to the FTA’s request for information, which can lead to the application being rejected and having to start again.
After you receive your TRN: what changes
- Invoicing. From the effective date, issue tax invoices showing your TRN, the VAT rate and the VAT amount. See our UAE tax invoice format guide.
- Returns. The FTA assigns your tax periods, usually quarterly; businesses with taxable supplies of AED 150 million or more file monthly. The VAT return and payment are due by the 28th day after each period ends, and a nil return is still required. See how to file a VAT return in the UAE.
- Records. Keep VAT records for at least 5 years (15 years for real estate). Companies within Corporate Tax should keep them for 7 years.
- Input VAT credits. From 1 January 2026 (Federal Decree-Law No. 16 of 2025), unused excess input VAT can no longer be carried forward indefinitely. Use it or reclaim it within five years.
- E-invoicing. Under Ministerial Decisions 243 and 244 of 2025, businesses with revenue of AED 50 million or more must appoint an Accredited Service Provider by 31 July 2026 and go live on 1 January 2027. Businesses below that must appoint one by 31 March 2027 and go live on 1 July 2027.
VAT registration and compliance penalties (2026)
Cabinet Decision No. 129 of 2025 reshaped the penalty table from 14 April 2026. The registration and deregistration penalties did not change.
| Violation | Penalty (from 14 April 2026) |
|---|---|
| Late VAT registration application | AED 10,000 |
| Late deregistration application | AED 1,000 per month of delay, capped at AED 10,000 |
| Late VAT return | AED 1,000; AED 2,000 for a repeat within 24 months |
| Late payment of VAT | 14% per annum, calculated monthly on the unpaid tax (replaced the 2% / 4% / 1%-daily model) |
| Incorrect tax return | AED 500 for a first error, waived if corrected before the return’s due date; higher for repeats |
| Failure to update the FTA on changes to your tax record | AED 1,000; AED 5,000 for a repeat within 24 months |
| Voluntary disclosure of an underpayment | 1% per month on the tax difference (15% plus 1% per month if made after an audit notice) |
More detail on calculating late-payment charges is in our VAT late payment penalty guide.
VAT deregistration: when and how
You must apply to deregister within 20 business days when either of the following happens:
- You stop making taxable supplies and do not expect to make any in the next 12 months.
- Your taxable supplies over the past 12 months fall below the voluntary threshold of AED 187,500.
You may apply to deregister if your taxable supplies fall below AED 375,000 but remain above AED 187,500. Voluntary registrants must first complete 12 months of registration. You apply on EmaraTax and file a final return, and you must settle all outstanding VAT and penalties before the FTA approves the deregistration. On deregistration, output VAT may be due on business assets and stock you still hold, so plan the timing with your accountant.
Crossed the threshold, or about to?
Naraa handles the threshold calculation, the EmaraTax application and your first VAT return, and can usually tell you in a 20-minute call whether you need to register now.
Frequently asked questions
What is the VAT registration threshold in the UAE?
Registration is mandatory once your taxable supplies and imports exceed AED 375,000 over the previous 12 months, or when you expect to exceed that figure within the next 30 days. Voluntary registration is available once taxable supplies or taxable expenses exceed AED 187,500. Exempt supplies do not count toward either figure.
How long does VAT registration take in the UAE?
The FTA aims to process complete applications within about 20 business days. It takes longer if the FTA asks for more information, and the review effectively pauses until you respond. Applications with matching, current documents and a clear turnover declaration are the fastest.
How much does VAT registration cost in the UAE?
Nothing. The FTA charges no fee to register for VAT on EmaraTax. You only pay if you use an accountant or tax agent to prepare the application. The real cost is missing the deadline, which carries an AED 10,000 penalty plus VAT on the supplies you made from the effective registration date.
What is the deadline to register for VAT after crossing AED 375,000?
You must apply within 30 days of the date you became required to register. Under the look-forward test, that is 30 days from the date you first expected your next-30-day supplies to exceed AED 375,000. VAT is due from the effective registration date the FTA assigns, not from when you receive the certificate.
Do free zone companies need to register for VAT?
Yes, if they cross the threshold. Free-zone companies follow the same VAT registration rules as mainland companies. Designated zones only change how certain movements of goods are treated. Services from a designated zone are still taxable, so most designated-zone businesses still count toward the threshold.
Does a foreign company need UAE VAT registration?
A non-resident must register, with no threshold, if it makes taxable supplies in the UAE and no other person is obliged to account for the VAT. Where a UAE-registered business customer accounts for VAT under the reverse charge, the foreign supplier normally does not need to register.
Is VAT registration in Dubai different from the rest of the UAE?
No. VAT is federal and administered by the Federal Tax Authority, so a Dubai company registers on the same EmaraTax portal, with the same thresholds, documents and deadlines, as a company in Abu Dhabi, Sharjah or any other emirate.
When must I deregister for VAT?
Within 20 business days of stopping taxable supplies, or of your taxable supplies over the past 12 months falling below AED 187,500. Applying late costs AED 1,000 per month, capped at AED 10,000. Deregistration is optional between AED 187,500 and AED 375,000, and voluntary registrants must stay registered for at least 12 months.
How long must I keep VAT records?
At least five years for VAT, and 15 years for records relating to real estate. If your business is within the Corporate Tax regime, Article 56 of the Corporate Tax Law requires seven years, so seven years is the practical minimum for most companies.