VAT Registration Conditions and Requirements in UAE

VAT is an indirect tax that is levied on the consumption of the majority of goods and services supplied. The final cost is borne by the consumer. VAT is applied in more than 170 countries.

It was introduced in the United Arab Emirates on 1 January 2018, with a standard rate of 5% imposed on most goods and services supplied in the UAE. Value Added Tax (VAT) has become an important source of non-oil revenue for the UAE.

Read More – Who Are Tax Agents? How They Can Help You In Implementing the VAT System

Federal Tax Authority of the UAE

The Federal Tax Authority (FTA) of the UAE is the governmental body responsible for the management, collection, and implementation of federal taxes. It was established through Federal Decree-Law No. 13 of 2016, issued by the late His Highness Sheikh Khalifa bin Zayed Al Nahyan.

Its Mission:

To achieve economic diversity through the best financial practices. To increase the non-oil revenues of the UAE and reduce reliance on oil resources in preparation for the post-oil economy. The Federal Tax Authority also contributes to achieving and supporting the economic continuity of the UAE. It also supports the business community and consumers in understanding their tax responsibilities and guides their full implementation.

you may be interested in reading – How to Pay VAT on Commercial Properties in UAE?

VAT Registration in UAE: Conditions and Requirements

VAT Registration Conditions

• VAT registration is mandatory if the value of your taxable supplies and imports exceeded AED 375,000 in the past 12 months, or is expected to exceed AED 375,000 in the next 30 days. You must apply within 30 days of crossing the threshold.
• A business can register voluntarily if its taxable supplies and imports, or its taxable expenses, exceeded AED 187,500 in the past 12 months, or are expected to exceed AED 187,500 in the next 30 days.
• Voluntary registration based on taxable expenses allows start-up businesses with little or no revenue yet to register for VAT and recover input tax.
• To register with the Federal Tax Authority, you create an account on the FTA’s EmaraTax portal using UAE PASS or an email address and password, and submit the VAT registration application online.
• VAT is applied in Abu Dhabi, Dubai, Ras Al Khaimah, Ajman, and the rest of the UAE and its free zones equally, with the exception of the free zones designated by the Cabinet of the UAE as “Designated Zones”.
• A VAT return is an official document that VAT-registered businesses must fill out and submit to the Federal Tax Authority for each tax period, as determined by the Authority. The return shows any output tax due, any recoverable input tax, and any other details.
• The “output tax” is the VAT that the taxable person charges on the goods and services they supply after VAT registration. The “input tax” is the VAT added by the supplier to the price when the recipient purchases goods or services subject to VAT.
• The “payable tax” is calculated by determining the difference between the output tax payable for a particular tax period and the recoverable input tax for the same tax period.
• If the output tax exceeds the input tax, the difference must be paid to the Federal Tax Authority. If the input tax exceeds the output tax, the excess can be refunded or carried forward. Under Federal Decree-Law No. 16 of 2025, excess input tax must be claimed within five years.
• VAT returns must be submitted to the Federal Tax Authority no later than 28 days after the end of each tax period. The tax period is the specific time period for which the tax is reported.

you should read – What You Should Remember About VAT Registration

UAE VAT Registration Requirements

• The following documents are typically required to register for VAT in the UAE:
  • Valid trade licence
  • Passport and Emirates ID of the owner, partners, or authorised signatory
  • Memorandum or Articles of Association (or partnership agreement)
  • Proof of authorisation for the signatory (such as a Power of Attorney)
  • Business contact details and address
  • Bank account details (IBAN letter)
  • Turnover declaration or financial records for the last 12 months
  • Customs registration details, if the business imports or exports
• The application is submitted on EmaraTax. The FTA may ask for additional information or documents before approving it. Once approved, the business receives a Tax Registration Number (TRN).
• The tax registration number and the VAT registration certificate can be downloaded directly from the EmaraTax account. In order to register with the Federal Tax Authority in the UAE, tax advisory offices and tax agents can be used throughout the UAE (Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah …) Contact us for more info

For registration, you can consult authorized tax agents as well as tax advisory offices.

Learn more: Why Should You Choose to Have a Tax Agent?

Approved Tax Agent in UAE

An approved tax agent is registered with the Federal Tax Authority and represents businesses before it. The tax agent handles VAT registration on behalf of the business and provides VAT advice and guidance. The approved tax agent will also file the periodic returns and manage VAT accounts in UAE. It also helps business owners with tax compliance, planning and consulting.

Learn more: VAT Penalties Explained

VAT Consultants in UAE

The FTA often sends registration applications back for simple reasons. The turnover declared doesn’t match the bank statements. The customs number is missing. The trade licence activity doesn’t match the supplies listed. Each request for clarification delays your TRN.

Farahat & Co. handles VAT registration for companies and individuals across all seven emirates. Our tax consultants:

• Check whether you must register, or can register voluntarily
• Calculate your turnover against the AED 375,000 and AED 187,500 thresholds
• Prepare your documents and submit the application on EmaraTax
• Answer FTA clarification requests until your TRN is issued
• Handle later changes, such as amending your registration, registering a tax group, or deregistering

After registration, we can manage your VAT accounting and returns. As an approved tax agent, we also represent clients before the FTA in tax audits, reconsideration requests and objections.