How to Register for VAT in the UAE – Complete Step-by-Step Guide

VAT registration in the UAE is a mandatory requirement for businesses that meet specific turnover thresholds. If your business supplies taxable goods or services within the UAE, understanding how VAT registration works is essential to avoid penalties and ensure compliance with the Federal Tax Authority (FTA). This guide provides a clear explanation of eligibility criteria, procedures, documents required, and key obligations related to VAT registration in the UAE.

What is VAT in the UAE

Value Added Tax (VAT) is a consumption-based tax imposed at the rate of 5 percent on most goods and services in the UAE. Once registered for VAT, businesses are required to charge VAT on taxable supplies, maintain proper records, submit VAT returns, and pay their VAT liabilities on time.

Why VAT Registration is Important

VAT registration increases business credibility, allows companies to recover input VAT paid on purchases, and ensures compliance with UAE tax laws. Businesses that fail to register on time may face administrative penalties and legal consequences.

Who Must Register for VAT in the UAE

Mandatory Registration

A business must register for VAT if its taxable supplies and imports exceed AED 375,000 during the previous 12 months or are expected to exceed this threshold in the coming 30 days.

Voluntary Registration

Businesses may voluntarily register for VAT if their taxable supplies or expenses exceed AED 187,500 but do not reach the mandatory registration threshold. Voluntary registration can be beneficial for reclaiming input VAT and enhancing business reputation.

Non-Resident Businesses

Non-resident companies making taxable supplies in the UAE must register for VAT regardless of turnover.

Step-by-Step Guide: How to Register for VAT in the UAE

Step 1: Check Eligibility

Assess your business’s taxable turnover over the past 12 months and estimate future supplies for the next 30 days. Determine if you meet the mandatory or voluntary registration criteria.

Step 2: Prepare Required Documents

Before starting the application, ensure you have the following documents:

Valid trade license
Certificate of incorporation (if applicable)
Memorandum and Articles of Association or partnership agreement
Passport copies and Emirates IDs of owners or authorized signatories
Business address, phone number, and email address
Bank account details
Sales invoices and turnover records
Financial projections for expected taxable supplies
Power of Attorney for authorized signatories (if applicable)

Step 3: Create an Account on the FTA Portal

Register your business on the Federal Tax Authority’s online platform and verify your account via email to access VAT registration services.

Step 4: Complete the VAT Registration Form

Log in to the portal, start the VAT application, and provide the required business information. Enter trade license details, business activities, turnover figures, and banking information. Upload all supporting documents.

Step 5: Review and Submit Application

Ensure that all details entered are accurate. Once verified, submit the VAT registration application for review by the Federal Tax Authority.

Step 6: Receive Your TRN

After successful review, the FTA issues a Tax Registration Number (TRN) and VAT registration certificate. The TRN must be printed on all VAT invoices and official documents issued by the business.

After VAT Registration: Key Compliance Requirements

Once registered, businesses must:

Charge VAT on taxable supplies and services
Issue VAT-compliant invoices with TRN mentioned
Submit VAT returns quarterly or as required
Maintain accurate accounting records
Pay VAT due to the FTA on time

Failure to comply may result in penalties and interest charges.

VAT registration can be completed by businesses themselves; however, for a faster, error-free, and fully compliant registration process, it is advisable to engage a qualified accounting firm or VAT professional.