As the UAE continues to strengthen its tax framework, Value Added Tax (VAT) remains a critical compliance obligation for businesses operating within the country. Introduced in 2018, VAT has transformed how companies manage their finances and report taxable transactions. By 2025, the system is fully operational and tightly regulated by the Federal Tax Authority (FTA).
If you are starting a new business or your existing business is approaching the mandatory VAT registration threshold, understanding the VAT registration process is essential. This blog provides a detailed, step-by-step guide on how to register your business for VAT in the UAE.
Why Register for VAT in the UAE?
VAT registration is legally required once a business crosses the mandatory turnover threshold. Beyond compliance, VAT registration allows businesses to:
Charge VAT on goods and services
Claim input VAT on purchases and expenses
Avoid penalties and legal complications
Enhance business credibility in local and international markets
Step 1: Determine If You Need to Register
Understand the Thresholds:
Mandatory Registration
If your taxable turnover exceeds AED 375,000 in the past 12 months or will exceed it in the next 30 days, you must register.
Voluntary Registration
If your turnover exceeds AED 187,500, but not AED 375,000, you may choose to register voluntarily.
Non-Resident Businesses
Any non-resident making taxable supplies in the UAE must register, regardless of turnover.
Tip: Taxable turnover includes standard-rated, zero-rated, and reverse-charged supplies made within the UAE.
Step 2: Prepare Required Documents
To complete your registration application, gather the following documentation. Incomplete or incorrect documents can delay approval.
Basic Requirements:
Trade license (valid and active)
Emirates ID and copyright copies of the business owner/partners
Memorandum of Association (MOA) or equivalent documents
Bank account details (IBAN and account name)
Proof of business activity (e.g., contracts, invoices)
Estimated or actual turnover over the past 12 months
Customs registration (if you import/export goods)
For foreign entities, additional documentation related to legal representation and business activity in the UAE may be required.
Step 3: Create an Account on the FTA e-Services Portal
Before applying for VAT registration, you must create an account with the FTA’s online system.
How to Register an Account:
Visit the FTA’s official e-Services portal.
Click on “Sign up” and provide:
Full name
Valid email address
Strong password
Security questions
Confirm your registration via the verification link sent to your email.
Once your FTA account is set up, you can begin the VAT registration process.
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Step 4: Fill Out the VAT Registration Application
After logging in to the FTA e-Services portal:
Start VAT Registration:
Click on “Register for VAT”
You’ll be directed to an application form divided into several sections:
About the Applicant – Business details, legal structure, trade license info
Contact Details – Physical address, email, and phone number
Business Relationships – Parent company or branches (if applicable)
About the VAT Registration – Turnover information, imports/exports, GCC activities
Declaration – Confirmation of the accuracy of provided information
Important Notes:
Fill in all fields carefully.
Upload the required documents in the correct format (PDF or JPEG).
Double-check turnover and activity details.
If you deal with GCC countries, indicate whether your company is part of a GCC VAT group or has business there.
Step 5: Submit the Application
Once the application is complete:
Review the information thoroughly.
Submit the form electronically.
A reference number will be generated for tracking.
After submission, the FTA will review your application. If everything is in order, you will receive your Tax Registration Number (TRN) within 5 to 20 business days.
Step 6: Receive and Use Your TRN
Once approved, you’ll receive a TRN certificate. This 15-digit number officially identifies your business as VAT-registered.
Where to Use TRN:
On tax invoices
On all VAT returns and correspondence with the FTA
On import/export documentation
In business contracts and financial statements
It is illegal to charge VAT without a valid TRN. Misusing a TRN or quoting an incorrect number can lead to penalties.
Step 7: Comply with VAT Obligations
Registration is just the beginning. After receiving your TRN, you are expected to meet ongoing VAT responsibilities.
✅ Charge VAT on Taxable Supplies
Apply the correct 5% VAT on invoices for standard-rated supplies.
✅ File VAT Returns
VAT returns must be filed monthly or quarterly, depending on your FTA-assigned tax period. Returns must be submitted within 28 days after the end of the tax period.
✅ Pay VAT on Time
Late payments can result in penalties and interest charges.
✅ Keep Accurate Records
Maintain complete VAT records and documents (invoices, receipts, contracts, import/export documents) for at least 5 years.
Common Mistakes to Avoid During Registration
Submitting incomplete or unclear documents
Underreporting turnover, leading to delayed registration
Providing inconsistent business details (e.g., address mismatch)
Delaying application after crossing the mandatory threshold
Using a TRN before official approval
Correcting these mistakes may take time and could expose your business to penalties or audits.
Penalties for Late or Non-Registration
Failing to register when required can result in:
AED 10,000 fine for late registration
Requirement to backdate VAT payments
Additional penalties for non-compliance or misreporting
It’s critical to monitor your business turnover and register as soon as you're legally obligated to do so.
Should You Register Voluntarily?
Many startups and small businesses choose to voluntarily register for VAT to:
Reclaim input VAT on business expenses
Appear more credible to suppliers and clients
Prepare for future growth and compliance
However, voluntary registrants must also meet all compliance responsibilities, including filing and recordkeeping.
Conclusion
Registering your business for VAT in the UAE is a straightforward but vital process. In 2025, with increased digital enforcement and real-time data tracking by the FTA, ensuring proper registration and full compliance is more important than ever.
By following the step-by-step process outlined in this guide, you can register your business confidently and begin operating within the UAE's regulated tax environment. Whether you’re registering out of necessity or as a strategic move, VAT compliance will strengthen your financial operations and business reputation.
If you are uncertain at any stage, working with a qualified tax consultant can save you time, avoid costly errors, and ensure full alignment with FTA requirements.