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A UAE business must register for VAT when its taxable supplies and imports went over AED 375,000 in the previous 12 months, or are expected to go over it in the next 30 days. The application must reach the Federal Tax Authority (FTA) within 30 days of the date you were required to register. Source: Federal Tax Authority, VAT registration, checked .
Who must register for VAT in the UAE?
There are two thresholds. They do different things.
| Case | Threshold | What you do |
|---|---|---|
| Mandatory | AED 375,000 of taxable supplies and imports | Apply within 30 days |
| Voluntary | AED 187,500 of taxable supplies, imports or taxable expenses | Apply if you choose to |
Below AED 187,500 you cannot register. Source: Federal Tax Authority, VAT registration, checked .
Examples
Example 1: steady growth. A consultancy grows slowly. In one month its sales over the last 12 months move from just under AED 375,000 to just over it. The test is passed in that month. The 30 days start from that date, not from the end of the financial year.
Example 2: a large contract. A trading company is at AED 200,000 over 12 months. It signs a contract large enough to take it over the line, to deliver within 30 days. It expects to pass AED 375,000 inside the next 30 days, so it must register now, before the invoice goes out.
Example 3: a start-up buying equipment. A new business has sales of about half the voluntary threshold and taxable expenses of about the same again. Together that is above AED 187,500. It is below the mandatory line, but it can register voluntarily.
These are illustrations, not tax advice. Mixed supplies, imports and exempt income change the count, so ask a VAT consultant to confirm yours.
How do you apply for VAT registration with the FTA?
The application is made on the FTA EmaraTax platform. Sign in with UAE Pass, activate the EmaraTax account, create the taxable person profile and start the VAT registration from there. The corporate tax registration page lists the service as free, available 24 hours a day, with 20 business days for the FTA to process a completed application. For VAT, read the live service page for its own timing. Source: Federal Tax Authority, EmaraTax registration service, checked .
Have your trade licence, owner passports and Emirates IDs, and proof of who can sign for the company. Figures for the past 12 months should be ready from your books.
Is VAT registration different in Abu Dhabi or another emirate?
No. VAT is a federal tax, so a business in Abu Dhabi, Sharjah or any other emirate registers the same way, with the same Federal Tax Authority, on the same EmaraTax platform, against the same AED 375,000 mandatory and AED 187,500 voluntary thresholds. The only local differences come from your licence: the licensing authority named on it, and whether you sit in a designated zone, which changes how some goods are taxed.
What happens if I register for VAT late?
A late registration application carries a penalty of AED 10,000. Source: Federal Tax Authority, administrative penalties table, checked . Check VAT penalties for the other charges. Once registered, your first VAT return is due 28 days after the end of your first tax period.
For the cost of having a firm do the application, see VAT registration cost.
Questions to settle before you apply
Work out which date the test was first passed. Go back through your sales ledger month by month and add up the previous 12 months at each month end. The first month that goes over AED 375,000 starts your 30 days. If you only look at the annual total in your accounts, you can miss it by months.
Decide which entity registers. The registration is for the legal person that holds the trade licence. A sole owner with two licences should ask before assuming one registration covers both. Group rules are not covered on this page, and the facts we hold on VAT groups are not confirmed, so check the current rule on the FTA site.
After registration you get a tax registration number (TRN). It goes on every tax invoice you issue. Update your invoice template, your accounting software and your customer records on the same day. Our guide to the VAT certificate explains what you receive.
What to do next
Set your return periods, then book the first filing date. Most new registrants are on quarterly periods unless the FTA assigns monthly. Agree who will keep your purchase invoices in order, because input tax claims depend on them. A VAT consultant or your bookkeeper can set this up in a short session.
