VAT Registration in the UAE: Requirements & Process
The UAE applies Value Added Tax (VAT) at 5% on taxable supplies under the UAE VAT system. Businesses that meet the applicable registration requirements must register with the Federal Tax Authority (FTA).
When Is VAT Registration Mandatory in the UAE?
For UAE-resident businesses, VAT registration is mandatory when the value of taxable supplies and imports exceeds AED 375,000 over the previous 12 months or is expected to exceed AED 375,000 within the next 30 days.
The AED 375,000 mandatory threshold does not apply to foreign businesses in the same way; non-resident businesses may have different registration obligations when making taxable supplies in the UAE.
Can a Business Register for VAT Voluntarily?
Yes. A UAE-resident business may apply for voluntary VAT registration when the value of its taxable supplies, imports or taxable expenses exceeds AED 187,500 under the applicable rules.
How to Register for VAT in the UAE
VAT registration is completed through the Federal Tax Authority's EmaraTax platform.
The general process is:
- Create and activate an EmaraTax account.
- Access the taxpayer dashboard.
- Create a taxable person profile.
- Select VAT registration.
- Complete the required information.
- Submit the application for review.
Once the application is approved, the VAT registration certificate becomes available through the taxpayer's e-Services account.
What Happens After VAT Registration?
VAT-registered businesses must comply with ongoing VAT obligations, including submitting VAT returns and paying VAT due to the FTA. VAT returns and related payments are generally due within 28 days from the end of the applicable tax period.
VAT registration is therefore not just a one-time application. Businesses should maintain appropriate records and monitor their taxable turnover to remain compliant.
Need help with VAT registration in the UAE? Bexford can assist businesses with the registration process and ongoing compliance requirements.
Government sources:
Federal Tax Authority: VAT Registration
Federal Tax Authority: VAT Registration Thresholds
