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How to Register for VAT in UAE — Complete 2026 Guide

BySaad Mahboob

Value Added Tax (VAT) was introduced in the UAE in January 2018 at a standard rate of 5%. Since then, thousands of businesses have been required to register with the Federal Tax Authority (FTA). If you are running a business in the UAE and have not yet registered for VAT, this guide will walk you through everything you need to know.

Who Must Register for VAT in the UAE?

VAT registration in the UAE is mandatory if your business meets the following threshold:

  • Mandatory registration: Annual taxable supplies exceed AED 375,000
  • Voluntary registration: Annual taxable supplies exceed AED 187,500

If your turnover is below AED 187,500, you are not required to register — but you may still choose to do so voluntarily, which can be beneficial if your clients are VAT-registered businesses.

What is Taxable Supply?

Taxable supply includes the sale of goods and services that are either:

  • Standard rated — 5% VAT applies
  • Zero rated — 0% VAT applies (exports, certain food items, healthcare, education)

Exempt supplies such as residential property rental and local passenger transport do not count toward the registration threshold.

Documents Required for VAT Registration

Before starting your FTA registration, gather the following documents:

  • Trade licence (valid copy)
  • Passport and Emirates ID of owner/partners
  • Memorandum of Association (MOA) if applicable
  • Bank account details (IBAN)
  • Business turnover details for the last 12 months
  • Details of customs registration (if applicable)

Step-by-Step VAT Registration Process

Step 1 — Create an EmaraTax Account Go to emaratax.gov.ae and create a new account using your email address and Emirates ID or passport number.

Step 2 — Start a New VAT Registration Application Once logged in, go to My Dashboard → Register for VAT → Start New Application.

Step 3 — Fill in Business Details Enter your business name, trade licence number, business activity, and contact information. Make sure all details match your trade licence exactly.

Step 4 — Enter Turnover Information Provide your expected or actual taxable turnover for the next 30 days and the previous 12 months. This determines whether you qualify for mandatory or voluntary registration.

Step 5 — Add Bank Account Details Enter your UAE business bank account IBAN. This is required for VAT refund purposes.

Step 6 — Submit and Wait for Approval After submitting, the FTA typically takes 5–10 business days to review and approve your application. You will receive a Tax Registration Number (TRN) upon approval.

What Happens After Registration?

Once registered, you are required to:

  • Charge 5% VAT on all standard-rated sales
  • Issue VAT-compliant tax invoices for every transaction
  • File VAT returns — typically quarterly — through EmaraTax
  • Maintain accounting records for a minimum of 5 years

Penalties for Non-Compliance

The FTA takes VAT compliance seriously. Penalties include:

  • AED 20,000 for failing to register on time
  • AED 10,000–50,000 for incorrect VAT returns
  • AED 5,000–10,000 per incorrect tax invoice

Need Help with VAT Registration?

VAT registration and ongoing compliance can be complex, especially for businesses with multiple activities or cross-border transactions. BizDabi offers complete VAT registration assistance, ensuring your application is accurate and approved without delays.

Contact us today for a free consultation: 📞 +971 55 858 5842 🌐 bizdabi.com

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