VAT Registration in the UAE: Threshold, Documents, Steps and Penalties (2026)

Who must register for VAT in the UAE?

VAT in the UAE is charged at 5% and is run by the Federal Tax Authority (FTA). Registration depends on your taxable turnover, not on your license type, so mainland and free zone companies follow the same rules.

• You must register if your taxable supplies and imports passed AED 375,000 in the last 12 months, or will pass it in the next 30 days.
• You may register voluntarily from AED 187,500 of supplies, imports or taxable expenses.
• Non-resident businesses that make taxable supplies in the UAE, such as overseas marketplace sellers, generally have no threshold and must register from their first supply. See VAT registration for Amazon sellers.

UAE VAT registration thresholds (2026)

Why register voluntarily? A registered business can reclaim the VAT it pays on business costs, and some larger clients only work with VAT-registered suppliers. Check your numbers with the VAT calculator.

The 30-day deadline

Once you are required to register, you must apply to the FTA within 30 days. The test runs at the end of every month: if your total for the last 12 months has passed AED 375,000, or you expect to pass it in the next 30 days, the 30 days start from then.

The common mistake: waiting for the year-end accounts. The test is a rolling 12 months, checked every month, so track your turnover monthly.

Documents required for VAT registration

• Trade license (mainland or free zone)
• Passport and Emirates ID of the owner and the authorized signatory
• Memorandum or Articles of Association, and proof of the signatory's authority
• Company contact details and business address
• Bank account details (an IBAN letter)
• Turnover evidence for the last 12 months, such as sales records or financial statements
• Customs registration numbers, if you import or export

The FTA can ask for more documents during review, which is the most common cause of delay.

How to register for VAT on EmaraTax: 5 steps

1. Create an EmaraTax account on the FTA website, or sign in with UAE PASS.
2. Add your company as a taxable person in the account.
3. Open the VAT registration form and complete the entity, business activity, turnover and bank details.
4. Upload the documents and submit.
5. Answer any FTA questions and receive your Tax Registration Number (TRN) and VAT certificate.

The FTA does not charge a fee to register; you only pay if you use an agent. Review usually takes a few weeks, longer if the FTA asks for more documents.

Entityz prepares and submits the application for you and answers FTA questions on your behalf.

After you register: what changes

• Charge 5% VAT on taxable sales and show your TRN on every tax invoice.
• File VAT returns for each tax period (usually quarterly) by the 28th day after the period ends, and pay any VAT due.
• Reclaim input VAT on eligible business costs.
• Keep records of invoices and accounts, as the law requires.

Late VAT registration penalty

The AED 10,000 fine still applies under the revised penalty rules in force since 14 April 2026 (Cabinet Decision No. 129 of 2025). Because you owe the VAT you did not charge, a late registration often costs far more than the fine itself.

VAT deregistration

A business must apply to deregister if it stops making taxable supplies, and may apply if its supplies stay below the AED 187,500 voluntary threshold. Deregistration must be requested on time and your final return filed, or further penalties apply.

Why register for VAT with Entityz

• A clear yes or no on whether and when you must register, based on your real turnover
• The application prepared and submitted, with FTA questions answered for you
• Corporate tax handled too: see corporate tax registration and the corporate tax calculator

Entityz has set up businesses for more than 500 entrepreneurs from over 50 nationalities, with a 95% client retention rate.