UAE VAT Registration: Thresholds, Process and Deadlines
7 min readUpdated 2026-10-03Editorial policyHow we verify
Quick answer
VAT registration is mandatory once your taxable supplies exceed AED 375,000 in any rolling 12-month period, and voluntary from AED 187,500. You register through the FTA's EmaraTax portal, the standard VAT rate is 5%, and late registration carries an AED 10,000 penalty.
VAT registration thresholds
The threshold counts taxable supplies — standard-rated and zero-rated sales — not profit. You must also register if you expect to cross AED 375,000 in the next 30 days, so fast-growing businesses should monitor the rolling total monthly rather than waiting for the year end.
UAE accounting and bookkeeping services can help organise invoices, reconcile transactions and track taxable supplies. Agree who maintains the records and monitors registration deadlines; VAT turnover and corporate-tax profit are different measures, so one registration does not replace the other.
| Item | Threshold | Rate / action |
|---|---|---|
| VAT registration | AED 375,000 taxable supplies (12 months) | Mandatory |
| VAT registration | AED 187,500 taxable supplies | Voluntary |
| Standard VAT rate | — | 5% |
| Zero-rated supplies | Exports, certain education and healthcare | 0% |
| Exempt supplies | Certain financial services, residential property | No VAT |
How to register for VAT on EmaraTax
Apply within 30 days of crossing the mandatory threshold. Voluntary registration can make sense earlier if your customers are VAT-registered businesses, because you can recover input VAT on setup costs such as licence fees, rent and equipment.
- Create an EmaraTax account with the FTA and link your trade licence.
- Prepare the trade licence, incorporation documents, shareholder and manager IDs, and the authorised signatory's proof of authority.
- Declare your turnover figures and expected taxable supplies with supporting evidence such as invoices or contracts.
- The FTA issues a Tax Registration Number (TRN) on approval — you must show it on every tax invoice from the effective date.
Deadlines, returns and penalties
- Registration: within 30 days of exceeding the mandatory threshold.
- VAT returns: quarterly for most businesses, monthly above AED 150m turnover.
- Return and payment deadline: 28 days after the end of each tax period.
- Late registration penalty: AED 10,000.
- Records must be retained for at least 5 years (7 for real-estate-related records).
Where corporate tax fits
VAT is separate from UAE corporate tax, which is 0% on the first AED 375,000 of taxable profit and 9% above it, with mandatory registration for every company regardless of profit. Free zone qualifying-income rules, substance conditions and corporate tax deadlines are covered in detail in our corporate tax guide.
Frequently asked questions
- When must I register for VAT?
- Within 30 days of exceeding AED 375,000 in taxable supplies over any rolling 12-month period, or if you expect to cross it in the next 30 days. You may register voluntarily from AED 187,500.
- What is the VAT rate in the UAE?
- The standard rate is 5%. Some supplies are zero-rated (such as exports) and some are exempt (such as certain financial services and residential property).
- Do free zone companies need to register for VAT?
- Yes. VAT applies by turnover, not by jurisdiction — a free zone company registers on the same AED 375,000 threshold as a mainland company. Designated zones have special rules only for goods, not services.
- What happens if I register late?
- The FTA charges an AED 10,000 late-registration penalty, and you remain liable for the VAT you should have collected from the date registration became mandatory.
Sources and further reading
This guide links to official and primary sources where available. Rules, forms and online services can change, so confirm your case through the relevant official service.
About the author
Sherwin Jesuraj
Business Setup Industry Expert
Sherwin Jesuraj writes about UAE company formation, mainland and free zone options, business setup costs, and entrepreneurship. His content for BusinessSetup.ae helps readers understand their options, compare practical requirements, and make informed decisions before starting a business.
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