Who has to register for VAT?
A business established in the UAE must register when its taxable supplies and imports exceeded AED 375,000 over the previous 12 months, or are expected to exceed it in the next 30 days. Zero-rated sales count towards that figure; exempt sales and the sale of capital assets do not.
Below that threshold, a business may register voluntarily once its supplies and imports, or its taxable expenses, exceed AED 187,500. It must also show the FTA that it carries on a business in the UAE and intends to make taxable supplies.
A business that is not established in the UAE has no threshold. It registers from its first taxable supply in the UAE, unless a UAE customer has to account for the VAT under the reverse charge. Check your own figures with our free VAT registration check.
When must you apply?
Within 30 days of being required to register. Late registration carries a fixed penalty of AED 10,000, and the FTA can register the business from the date it first became liable, so VAT is due on sales made before the registration went through.
A business whose supplies are all zero-rated can ask the FTA for an exception from registration. It must then tell the FTA within 10 business days of making a standard-rated supply.
What the FTA asks for
- your trade licence and any branch licences
- the certificate of incorporation, Memorandum of Association or partnership agreement, where you have one
- Emirates ID and passport copies of the owners and authorised signatories, and a power of attorney where the signatory is not named in the Memorandum of Association
- a signed and stamped declaration of your total taxable supplies and monthly sales since the business was set up
- supporting documents such as invoices, contracts or purchase orders, and evidence of expected revenue
How we register your business
- Scoping. In a complimentary scoping consultation, we look at your figures, confirm whether and when you must register, and confirm the fee.
- Engagement. Once you accept our proposal, we send an engagement letter for you to sign.
- Documents and access. You share the documents above and access to your EmaraTax account.
- Application. We prepare the application, and it is submitted through your EmaraTax account.
- Certificate. The FTA estimates about 20 business days once the application is complete, and the registration certificate then appears in your EmaraTax dashboard.
After you register
You charge VAT on your taxable sales, at 5% unless they are zero-rated, and file a return for every tax period: the return and any VAT payable are due within 28 days of the end of the period, which is quarterly for most businesses. Our VAT return filing starts from AED 500 per tax period.
Fees
| Service | Our fee, exclusive of VAT |
|---|---|
| VAT registration (the FTA charges no fee) | From AED 500 |
| VAT registration amendment or de-registration | From AED 500 |
| VAT return filing | From AED 500 per tax period |
| Compliance & Finance package: bookkeeping plus every VAT and corporate tax filing, turnover up to AED 5M | From AED 1,800 a month |
Fees are confirmed after scoping, before any work starts. See all our fees.
Who handles your VAT registration?
Our tax practice is led by Kiran Kumar CR, Co-Founder & Strategic Finance Director, who has over 13 years across corporate finance, taxation, audit and FP&A (our founders).
Questions about VAT registration
How long does VAT registration take?
The FTA aims to complete its review within 20 business days of receiving a complete application. The registration certificate then appears in your EmaraTax dashboard.
How much does VAT registration cost?
The FTA charges nothing. Our VAT registration service starts from AED 500, exclusive of VAT, and the fee is confirmed after scoping.
Do I need a registered tax agent to register for VAT?
No. Appointing a tax agent is optional, and the business stays responsible for its tax either way (Tax Procedures Law, Article 14). A business can apply on EmaraTax itself or have an adviser prepare the application. Only someone listed in the FTA's register of tax agents can represent you before the FTA as your tax agent.
Can I register for VAT voluntarily?
Yes, once your taxable supplies and imports, or your taxable expenses, exceed AED 187,500 over the previous 12 months, or are expected to in the next 30 days, as long as you carry on a business in the UAE. A voluntary registration cannot be cancelled within its first 12 months.
What happens if I register late?
The penalty for not applying on time is AED 10,000. The FTA can also register you from the date you first became liable, and VAT is then due on the taxable sales made since that date.