Once your business reaches a certain size, VAT registration in the UAE is no longer a choice. Register late and you face a penalty. Register when you don't need to, and you take on filing work you could have avoided.
This guide explains who must register, which documents you need, and how to apply on EmaraTax, the Federal Tax Authority's (FTA) online platform. The process is the same in every emirate, whether your business is in Dubai, Abu Dhabi or Sharjah.
Who Must Register for VAT in the UAE?
It depends on the value of your taxable supplies and imports. The FTA looks back over the past 12 months, and forward over the next 30 days.
| Registration | Threshold | Based on |
|---|---|---|
| Mandatory | AED 375,000 | Taxable supplies and imports |
| Voluntary | AED 187,500 | Taxable supplies, imports or taxable expenses |
Foreign businesses work differently. The mandatory threshold does not apply to them, so a non-resident business making taxable supplies in the UAE may need to register whatever the amount.
What Counts Toward the Threshold?
- Sales charged at the standard 5% rate
- Zero-rated sales, such as most exports
- Imported goods and services that would be taxable if supplied in the UAE
Exempt supplies, such as residential rent and local passenger transport, do not count. And always use your total sales, not your profit. This is one of the most common mistakes we see.
Documents You Need
- Trade license, plus any branch licenses
- Memorandum of Association or Certificate of Incorporation
- Emirates ID and passport copies of the owners and the authorized signatory
- Proof of the signatory's authority, such as a power of attorney, if needed
- Sales records or a turnover declaration for the past 12 months
- Company bank account details and business address
- Customs registration number, if you import or export
Every document must be valid and the details must match exactly. A company name spelled differently on two documents is enough for the FTA to send an application back.
How to Register on EmaraTax: Step by Step
- Sign in to EmaraTax. FTA services are accessed with UAE Pass, so set that up first if you don't have it.
- Create a taxable person profile. Add your business to your EmaraTax account.
- Open the VAT registration form. Say whether you are applying because you must (mandatory) or by choice (voluntary).
- Enter your business details. Use your legal name exactly as it appears on your trade license, then add your activities, address, contact person, bank details and turnover.
- Upload your documents and submit. Check everything first. You'll receive an application reference number.
- Answer any FTA questions. If the FTA asks for more information, reply within the time it gives you, or the application may be rejected.
- Receive your TRN. Once approved, your VAT certificate with your 15-digit Tax Registration Number appears in your EmaraTax account.
The FTA aims to process a complete application within 20 business days.
Deadlines and Penalties
Once your business passes the mandatory threshold, you have 30 days to apply. Missing this deadline leads to a fixed late registration penalty, so check your sales every month rather than once a year.
A new set of FTA penalties has applied since 14 April 2026, under Cabinet Decision No. 129 of 2025. For example, unpaid VAT now carries a late payment penalty of 14% per year, charged monthly on the amount owed.
What Happens After You Register?
- You charge 5% VAT on taxable sales and show your TRN on every tax invoice.
- You file a VAT return every tax period, usually quarterly, by the 28th day after the period ends. Here's how our VAT return filing service works.
- You keep records of sales, purchases and invoices for at least 5 years. Good bookkeeping makes this simple.
- You tell the FTA when your business details change. Failing to do so costs AED 1,000 for a first offence.
Common Mistakes to Avoid
- Using profit instead of sales. The threshold is based on the value of your supplies.
- Forgetting imports. They count toward the threshold too.
- Checking once a year. The 12 months are any rolling 12 months, not just the calendar year.
- Documents that don't match. Names, license numbers and dates must agree everywhere.
- Registering each branch separately. A company registers once, and one TRN covers all its branches.
This guide is general information based on FTA rules as of 21 October 2026. Tax rules change, so speak to a consultant before acting on it.