Short answer: You must register for VAT if your taxable supplies and imports went over AED 375,000 in the last 12 months, or will go over it in the next 30 days. You can register voluntarily from AED 187,500. Apply on the FTA’s EmaraTax portal within 30 days of crossing the threshold, or face a AED 10,000 penalty.
VAT thresholds at a glance
| Threshold | Rule | |
|---|---|---|
| Mandatory | Over AED 375,000 | Taxable supplies + imports, past 12 months or expected in the next 30 days |
| Voluntary | Over AED 187,500 | Taxable supplies/imports or taxable expenses |
| Below AED 187,500 | Cannot register | Not eligible |
Standard VAT rate: 5%.
How to check if you’ve crossed the threshold
Every month, add up your taxable sales and imports for the last 12 months (a rolling 12 months, not the calendar year).
- Include standard-rated (5%) and zero-rated sales.
- Exclude exempt supplies (for example, residential rent and some financial services).
- Also look ahead: if one big contract will push you over AED 375,000 within the next 30 days, you must register now.
Example: A consultancy has billed AED 340,000 in the last 12 months and signs a AED 60,000 contract to be invoiced next week. It must apply for VAT now, because it will cross AED 375,000 within 30 days.
Documents you’ll need
- Trade licence (valid)
- Passport and Emirates ID copies of owners/partners
- Memorandum of Association / partnership deed (companies)
- Company bank account details (IBAN letter)
- Proof of turnover: sales invoices, audited or management accounts
- Customs registration and import details (if you import)
- Physical office address and contact details
- Power of attorney (if an agent applies for you)
Step-by-step: VAT registration on EmaraTax
- Log in to EmaraTax with UAE Pass or your FTA account.
- Select your Taxable Person profile, or create one.
- Choose VAT → Register.
- Fill in entity details, business activities and bank details.
- Enter turnover figures and upload supporting documents.
- Review and submit.
- Track the status. Approval typically takes around 20 business days if documents are complete.
- Once approved, download your VAT certificate and TRN and start charging 5% from the effective date.
After registration: what changes
- Issue tax invoices showing your TRN and the 5% VAT
- File VAT returns, usually quarterly, within 28 days of the period end
- Keep records for at least 5 years
- Be ready for e-invoicing, which the UAE is phasing in from 2026–2027
Penalties to avoid
- Late VAT registration: AED 10,000
- Late return / late payment: penalties apply on top of the tax due
- Wrong invoices (missing TRN or wrong format): fines per invoice
Common mistakes
- Counting only the calendar year instead of a rolling 12 months
- Forgetting the “next 30 days” rule on large contracts
- Uploading turnover figures that don’t match bank statements
- Registering voluntarily without being ready to file returns every quarter
FAQ
What is the VAT registration threshold in UAE?
AED 375,000 for mandatory registration and AED 187,500 for voluntary registration.
How long does VAT registration take in UAE?
Usually about 20 business days on EmaraTax, if documents are complete.
What is the penalty for late VAT registration?
AED 10,000.
Can a free zone company register for VAT?
Yes. Free zone businesses must register when they cross the threshold. Designated-zone rules affect how some goods are taxed.
Is voluntary VAT registration worth it?
It can be, if you have large VAT-able expenses and want to reclaim input VAT. It also means quarterly filings, so weigh the admin load.
Not sure if you’ve crossed the threshold? Your Office Partners can check your last 12 months of turnover and handle the full VAT registration on EmaraTax. Get VAT help →
Related guides: VAT & corporate tax services · UAE VAT changes 2026 · UAE e-invoicing guide · Accounting & bookkeeping services
