VAT Registration in the UAE: Thresholds, Documents, Deadlines
A UAE business must register for VAT once taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to exceed it in the next 30 days. Voluntary registration opens at AED 187,500. The rate is 5%, registration runs through the FTA's EmaraTax portal, and late registration carries a fixed AED 10,000 administrative penalty.
Published 30 August 2026
Mandatory vs Voluntary Registration
Two thresholds and one exit rule govern UAE VAT registration: mandatory at AED 375,000 of taxable turnover, voluntary from AED 187,500 of turnover or expenses, and deregistration once supplies fall below AED 187,500; the table states each trigger.
| Trigger | Threshold | Notes |
|---|---|---|
| Mandatory registration | AED 375,000 | Trailing 12 months of taxable supplies + imports, or expected within 30 days |
| Voluntary registration | AED 187,500 | Supplies or expenses; lets startups reclaim input VAT before revenue scales |
| Deregistration | below 187,500 | Apply within the FTA's window once supplies fall and stay below |
The voluntary route is the underused one: a pre-revenue company burning AED 200,000 per year on UAE expenses can register on the expense test and reclaim the 5% input VAT it pays on rent and services, at the price of quarterly filing discipline.
Documents the FTA Asks For
The FTA asks for five document sets with a UAE VAT registration, and turnover evidence that fails to reconcile is the most common rejection cause.
- Trade license and Memorandum of Association.
- Passport and Emirates ID of the authorized signatory (and proof of authorization).
- Turnover evidence: signed turnover declaration, invoices, or audited/management accounts supporting the threshold claim.
- Bank account details (IBAN letter) for refunds.
- Description of business activities and expected supplies by emirate.
The most common rejection reason is turnover evidence that does not add up to the claimed threshold; the FTA cross-checks the declaration against the uploaded invoices. Submit numbers that reconcile.
After Registration: Filing and Invoicing Duties
Five duties start the day a UAE VAT registration issues, from the 28th-day filing deadline to charging the correct rate per supply category.
- File by the 28th day after each tax period ends; the FTA assigns quarterly periods to most registrants and monthly to larger ones.
- Issue compliant tax invoices showing your TRN, the VAT amount, and the FTA-required fields; incomplete invoices void your customer's input claim.
- Keep records at least 5 years (longer for real estate).
- Charge the right rate: 5% standard; 0% for exports outside the GCC implementing states, international transport, the first supply of new residential property, and certain education and healthcare supplies.
- Pay and file on time: a late return costs AED 1,000 (AED 2,000 when repeated within 24 months) and late payment accrues at 14% per annum on the unpaid tax, under Cabinet Decision No. 129 of 2025 in force since April 2026. The full penalty table is on the VAT and accounting page.
How VAT Interacts With Corporate Tax
VAT and corporate tax are separate registrations on the same EmaraTax portal with separate TRNs, separate returns, and separate thresholds: AED 375,000 of turnover triggers VAT, while AED 375,000 of profit is where the 9% corporate tax rate starts. A company can owe VAT and no corporate tax, or the reverse. Both sets of duties are summarized on the VAT and accounting page and the corporate tax registration guide.