Starting a new business in the UAE comes with a key compliance obligation: VAT registration. Whether you have just received your trade licence or are in the process of setting up, understanding the VAT registration UAE process from the outset will protect your business from penalties and ensure you are operating fully within Federal Tax Authority (FTA) regulations.
At Farahat & Co., we have guided hundreds of new companies through the UAE VAT registration process — from eligibility assessment to obtaining their VAT registration certificate. This complete guide walks you through everything you need to know about how to register for VAT in UAE for a new company, including the required documents, step-by-step procedure, timelines, and ongoing compliance obligations.
What is VAT Registration in the UAE?
VAT registration in the UAE is the formal process through which a business registers with the Federal Tax Authority (FTA) to collect, report, and remit Value Added Tax (VAT) on its taxable supplies. Once registered, the business receives a unique Tax Registration Number (TRN), which must appear on all tax invoices and VAT-related documents.
UAE VAT was introduced on 1 January 2018 at a standard rate of 5%, making the UAE one of the most VAT-competitive jurisdictions in the GCC. All businesses that meet the FTA’s registration thresholds are legally required to register — failure to do so results in significant administrative penalties.
Must Check: VAT Registration Services
VAT Registration Thresholds for New Companies in UAE
Before initiating the VAT registration UAE process, a new company must first assess which registration category applies to its business:
Mandatory VAT Registration
A new company in the UAE is legally required to register for VAT if:
- Its taxable supplies and imports exceed AED 375,000 in the previous 12 months, or
- It is anticipated that taxable supplies will exceed AED 375,000 in the next 30 days
Exceeding the mandatory threshold and failing to register on time exposes the business to FTA penalties of AED 20,000 for late registration.
Voluntary VAT Registration
VAT registration for a new company in UAE is also available on a voluntary basis if:
- Taxable supplies or taxable expenses exceed AED 187,500 in the previous 12 months or are expected to do so in the coming 30 days
- The business supplies goods or services that are exempt from VAT but subject to the reverse charge mechanism
- The company is part of or intends to form a VAT group with related UAE entities
Voluntary registration is strategically beneficial for new companies that incur significant VAT on start-up costs and wish to recover input tax from the FTA at an early stage.
Exempt Businesses
Businesses that deal exclusively in VAT-exempt supplies (such as certain financial services, residential property, and local passenger transport) are neither required nor eligible to register for VAT. However, they cannot recover input VAT on their business expenses.
Need Expert Advice?
Contact the team at Farahat & Co. for professional support and expert insights for businesses operating in the UAE.
Documents Required for VAT Registration in UAE
Gathering the correct documentation before beginning the online application is essential for a smooth VAT registration UAE process. The following documents are required for VAT registration for a new company in UAE:
| Document | Details |
|---|---|
| Trade Licence | A valid copy of the UAE trade licence issued by the relevant licensing authority |
| Emirates ID | Copies of Emirates IDs of all authorised signatories |
| Passport Copies | Passport copies of the company’s owners, directors, or authorised signatories |
| Proof of Office Address | Tenancy contract (Ejari), utility bill, or official lease agreement |
| Bank Account Details | UAE bank account details in the company’s name |
| Customs Registration Number | If the business imports or exports goods |
| Financial Statements or Accounts | Supporting documents demonstrating turnover or projected taxable supplies |
| Memorandum of Association (MOA) | Required for corporate entities and LLCs |
| Power of Attorney | If the application is being submitted by a tax agent or third party |
Note: The FTA may request additional documents depending on your business activity, legal structure, or emirate of registration. Working with a licensed VAT registration consultant in UAE ensures your application is complete and compliant.
Step-by-Step Procedure for VAT Registration in UAE for New Company
Here is a complete walkthrough of how to register for VAT in UAE for a new company through the FTA’s EmaraTax portal:
Step 1 — Assess Your VAT Registration Eligibility
Before submitting an application:
- Calculate your actual or anticipated taxable supplies for the previous or next 12-month period
- Determine whether mandatory or voluntary VAT registration UAE applies to your business
- Identify whether a VAT group registration may be more appropriate if you operate multiple related entities
Step 2 — Gather All Required Documents
Prepare all documentation listed above in digital format. Ensure all documents are:
- Current and valid (trade licence must not be expired)
- Clear and legible scans or certified copies
- In English or accompanied by a certified Arabic translation where required
Step 3 — Create an EmaraTax Account
The FTA’s VAT registration process is conducted entirely online through the EmaraTax portal at tax.gov.ae:
- Visit tax.gov.ae and select EmaraTax
- Create a new user account using your Emirates ID or UAE Pass
- Verify your account via the OTP sent to your registered mobile number
- Log in and navigate to the VAT Registration section
Step 4 — Complete the VAT Registration Application
Within the EmaraTax portal, complete the VAT registration UAE application form by providing:
- Business details — legal name, trade licence number, business activity, date of incorporation
- Contact information — registered address, email, phone number
- Turnover details — historic or projected taxable supplies and imports
- Banking information — UAE bank account details
- Customs details — if applicable
- Authorised signatory information — details and Emirates ID of authorised signatories
- VAT group information — if applying as part of a VAT group
Attach all supporting documents as part of the online application submission.
Step 5 — Submit the Application to the FTA
Once the application form is fully completed and all documents attached:
- Review all entries carefully before submission
- Submit the application via the EmaraTax portal
- Note the application reference number for tracking purposes
The FTA aims to process standard VAT registration UAE applications within 20 business days. Complex applications or those requiring additional documentation may take longer.
Step 6 — Receive Your VAT Registration Certificate
Upon approval, the FTA issues a VAT Registration Certificate to the applicant. This certificate contains:
- Your unique Tax Registration Number (TRN) — a 15-digit identifier
- The effective date of registration
- The filing frequency (monthly or quarterly)
- The registered legal name and address of the business
Your TRN number must appear on all tax invoices, VAT credit notes, customs declarations, and official correspondence with the FTA from this point forward.
Also Check: VAT Consultancy Services
VAT Return Filing Requirements After Registration
Once VAT registration in UAE is complete, new companies must comply with the FTA’s ongoing filing and payment obligations:
| Business Type | Filing Frequency |
|---|---|
| Businesses with annual taxable supplies below AED 150 million | Quarterly (every 3 months) |
| Businesses with annual taxable supplies of AED 150 million or above | Monthly |
| Businesses directed by the FTA | As instructed by the FTA |
VAT returns must be filed and any VAT due paid within 28 days of the end of each tax period. Late filing or late payment results in FTA penalties.
Also Check: VAT Return Filing Services
VAT Group Registration in the UAE — Is it Right for Your Business?
If your new company is part of a corporate group with multiple UAE legal entities, applying for VAT group registration may be highly advantageous:
- Intra-group transactions between VAT group members are disregarded for VAT purposes
- A single VAT return is filed on behalf of all group members, reducing administrative burden
- Input VAT recovery is optimised across the group
- VAT compliance risk is centralised and more easily managed
To qualify for VAT group registration, all member entities must be established or have a fixed establishment in the UAE, be related parties (under common ownership or control), and be eligible taxable persons.
Ongoing VAT Compliance Obligations for New Companies in UAE
Registering for VAT is not a one-time task — it comes with significant ongoing compliance responsibilities:
Accurate Record-Keeping Maintain detailed records of all VAT transactions for a minimum of 5 years, including tax invoices, credit notes, import/export documents, and bank statements.
Timely VAT Return Filing File VAT returns with the FTA on time — quarterly or monthly depending on your filing frequency. Each return must accurately report output VAT collected and input VAT recoverable.
Prompt VAT Payment Pay all VAT liabilities to the FTA within the stipulated deadline (28 days after the tax period ends) to avoid surcharges and penalties.
Input VAT Recovery Claim VAT paid on eligible business purchases and expenses as input tax, deducting it from the VAT collected on sales in your return.
Issuance of Compliant Tax Invoices Ensure all invoices issued meet FTA requirements — including your TRN, correct VAT rate, VAT amount, and required invoice fields.
FTA Audit Readiness Maintain organised, complete financial records and stay prepared for FTA compliance audits at any time.
VAT Deregistration If your taxable supplies fall below the mandatory threshold, you may be required or entitled to apply for VAT deregistration with the FTA.
Common Mistakes New Companies Make with VAT Registration in UAE
| Mistake | Consequence |
|---|---|
| Missing the registration deadline once the threshold is exceeded | FTA penalty of AED 20,000 |
| Submitting incomplete or incorrect documentation | Application rejection or delays |
| Using an incorrect trade licence during registration | Application invalidation |
| Failing to update FTA records when business details change | Non-compliance penalties |
| Not displaying the TRN on tax invoices | Invalid invoices and input VAT recovery issues |
| Late or incorrect VAT return filing | Financial penalties and potential FTA audit |
VAT Registration Timeline for New Companies in UAE
| Stage | Estimated Timeframe |
|---|---|
| Document preparation and account setup | 1–3 business days |
| Application form completion and submission | 1–2 business days |
| FTA review and processing | Up to 20 business days |
| TRN and VAT Registration Certificate issued | Within 20 business days of approval |
Working with a qualified VAT registration consultant in UAE can significantly reduce the risk of delays due to incomplete applications or documentation errors.
Why Use a VAT Consultant for New Company Registration in UAE?
While the VAT registration UAE process can be completed independently via EmaraTax, engaging a licensed VAT consultant delivers important advantages for new companies:
- Accurate eligibility assessment (mandatory vs voluntary registration)
- Correct document preparation and application completion
- Expert guidance on VAT group eligibility and structuring
- Reduced risk of FTA rejection or requests for additional information
- Ongoing support with VAT return filing, record-keeping, and compliance
- Representation in the event of FTA queries or audits
How Farahat & Co. Can Help with VAT Registration in UAE
Farahat & Co. is one of the UAE’s most trusted and experienced VAT registration consultants, with a dedicated team of licensed tax professionals serving new and established businesses across all emirates.
Our comprehensive VAT registration UAE services for new companies include:
- VAT Eligibility Assessment — We determine whether mandatory or voluntary registration applies to your business
- Document Preparation — We prepare and review all required documentation to FTA standards
- EmaraTax Application Management — We complete and submit the VAT registration application on your behalf
- TRN Obtainment — We track the application and ensure you receive your TRN and certificate promptly
- VAT Return Filing — We manage ongoing quarterly or monthly VAT return preparation and submission
- VAT Group Registration — We advise on and implement VAT group structures for corporate groups
- FTA Audit Support — We represent your business in FTA compliance reviews and audits
- VAT Advisory — We provide strategic VAT advice tailored to your industry and business model
Contact Farahat & Co. today to get your new company’s VAT registration UAE process started without delay.
Need Expert Advice?
Contact the team at Farahat & Co. for professional support and expert insights for businesses operating in the UAE.
Frequently Asked Questions (FAQs)
What is the VAT registration threshold for a new company in UAE?
The mandatory VAT registration UAE threshold is AED 375,000 in taxable supplies or imports annually. Voluntary registration is available once taxable supplies or expenses exceed AED 187,500. New companies that anticipate exceeding the mandatory threshold within 30 days must also register immediately.
How do I register for VAT in UAE for a new company?
VAT registration for a new company in UAE is completed online through the FTA’s EmaraTax portal at tax.gov.ae. The process involves creating an account, completing the registration application form, uploading supporting documents, and submitting to the FTA for review. Approval and TRN issuance typically takes up to 20 business days.
What documents are needed for VAT registration in UAE?
Documents required for VAT registration UAE include a valid trade licence, Emirates ID and passport copies of authorised signatories, proof of office address, UAE bank account details, and Memorandum of Association. Additional documents may be required depending on business type and activity.
How long does VAT registration in UAE take?
The FTA typically processes VAT registration UAE applications within 20 business days from the date of submission. Delays can occur if the application is incomplete or additional documentation is requested.
What is the penalty for late VAT registration in UAE?
Failing to register for VAT by the required deadline results in an FTA administrative penalty of AED 20,000. New companies that exceed the AED 375,000 mandatory threshold must register immediately to avoid this penalty.
Can a new company register for VAT voluntarily in UAE?
Yes. Voluntary VAT registration in UAE is available to new companies whose taxable supplies or taxable expenses exceed AED 187,500. Voluntary registration is particularly beneficial for businesses with significant start-up costs, as it enables early input VAT recovery.
What is a VAT group and should my new company consider it?
A VAT group allows multiple related UAE legal entities to register as a single taxable person, filing one consolidated VAT return. This simplifies compliance and eliminates VAT on intra-group transactions. If your new company is part of a broader corporate group, VAT group registration may significantly reduce your administrative burden.
What are the ongoing VAT obligations after registration in UAE?
After completing VAT registration UAE, a new company must file VAT returns (quarterly or monthly), pay VAT liabilities within 28 days of each tax period, maintain VAT records for 5 years, issue compliant tax invoices displaying the TRN, and remain available for FTA compliance audits.
