How to Register Your UAE Free Zone Company for UAE VAT 2026
UAE VAT registration is mandatory for businesses with taxable supplies exceeding AED 375,000 annually. Here is the 2026 step-by-step guide for free zone companies.
In this guide:
Do UAE Free Zone Companies Need to Register for VAT?
UAE VAT applies to all UAE businesses — free zone or mainland — that meet the threshold:
- Mandatory VAT registration: Annual taxable supplies exceed AED 375,000
- Voluntary VAT registration: Annual taxable supplies between AED 187,500 and AED 375,000
- Below AED 187,500: No VAT registration allowed
Which Transactions Count for the VAT Threshold?
- Sales of goods and services to UAE customers: Count toward threshold
- Exports (zero-rated): Zero-rated exports still count toward the threshold calculation
- Exempt supplies (residential rent, bare land): Do NOT count toward threshold
- Imports: Import VAT is paid at customs; does not count toward registration threshold
UAE VAT Registration Process
- Create EmaraTax account at tax.gov.ae
- Navigate to “VAT” > “Register for VAT”
- Enter business details (trade licence, activity, revenue estimate)
- Upload supporting documents
- Submit registration
- FTA processes in 10-20 working days
- UAE TRN (Tax Registration Number) issued — add to your invoices
After VAT Registration: Key Obligations
- Issue tax invoices (in Arabic and English for B2B UAE transactions above AED 10,000)
- Collect 5% VAT on taxable supplies to UAE customers
- File UAE VAT return quarterly (or monthly if assigned by FTA)
- Pay VAT due within 28 days of tax period end
- Keep VAT records for 5 years
VAT Exemption for Free Zone Companies (Designated Zones)
Some UAE free zones are designated zones where transactions between businesses within the zone may be treated differently for VAT. Dubai South, Jafza, and KEZAD are designated zones. Check with your free zone authority if this applies to you.