UAE VAT (Value Added Tax) at 5% has been in effect since January 2018. Every UAE business above the registration threshold must register for VAT. Here is a complete guide to UAE VAT registration.
UAE VAT Registration Thresholds
Mandatory registration: Annual taxable supplies and imports exceed AED 375,000. You must register within 30 days of crossing this threshold. Voluntary registration: Annual taxable supplies exceed AED 187,500 (50% of mandatory threshold). Voluntary registration is beneficial for B2B businesses — you can recover input VAT on your business expenses. Non-resident registration: Non-UAE businesses providing taxable services to UAE customers may also need to register (reverse charge mechanism applies in some cases).
UAE VAT Registration Process
Step 1: Gather required information: TRN (Trade Registration Number), company documents, bank account details, expected turnover figures. Step 2: Log in to EmaraTax (emaratax.gov.ae) — the FTA’s e-services portal. Step 3: Complete the VAT registration form online. Financial year details, business activities, expected taxable turnover. Step 4: Submit and wait for FTA review. Processing time: 5–20 business days. Step 5: Receive TRN (Tax Registration Number for VAT). Your TRN must appear on all tax invoices you issue. VAT period: most UAE businesses file quarterly VAT returns. Large businesses (annual VAT liability AED 1M+) may file monthly. Small businesses (AED 375K–1M revenue) may be offered annual filing.
VAT Groups
Related UAE companies (under common ownership/control) can form a VAT Group — which means: intra-group supplies are not subject to VAT (simplifies VAT accounting for group structures), the group files a single consolidated VAT return, and the group has a single TRN. VAT group registration is optional but beneficial for holding company structures with active subsidiaries.