UAE VAT Registration Guide — When and How to Register for VAT 2026
UAE VAT (Value Added Tax) at 5% has been in effect since January 2018. All UAE businesses meeting the registration threshold must register, collect VAT from customers, and file returns. This guide covers UAE VAT registration for 2026.
In this guide:
UAE VAT Registration Thresholds
- Mandatory registration: if your UAE taxable supplies (sales) exceed AED 375,000 in the past 12 months OR are expected to exceed AED 375,000 in the next 30 days; must register within 30 days of crossing the threshold
- Voluntary registration: if taxable supplies exceed AED 187,500 but are below AED 375,000; optional to register; benefit if you have significant input VAT to recover from purchases
- Threshold calculation: taxable supplies include standard-rated (5%) and zero-rated (0%) supplies; exempt supplies are excluded from the threshold calculation
- Group VAT registration: two or more UAE-resident related companies can form a VAT group and file a single VAT return; one company is the representative; internal transactions within the group are ignored for VAT
How to Register for UAE VAT
- Access EmaraTax: the UAE Federal Tax Authority portal; emaratax.gov.ae; all VAT registrations and returns are filed here
- Create an account: register on EmaraTax with your Emirates ID or UAE company documents; login with UAE PASS or username and password
- Start VAT registration: navigate to “VAT Registration”; complete the registration form: company details, activities, expected taxable supplies, VAT group (if applicable)
- Upload documents: trade licence copy; company registration documents; authorised signatory passport/Emirates ID; bank account details
- Submit and wait: FTA reviews and issues your Tax Registration Number (TRN) within 10-20 business days; TRN starts with “100” followed by 12 digits
- Display TRN: once registered, display your TRN on all invoices, quotes, and contracts; failure to display TRN is a separate offence
UAE VAT Filing Requirements
- Quarterly returns: most UAE businesses file VAT returns quarterly; the quarter aligns with the period on your TRN registration
- Monthly returns: if your annual taxable supplies exceed AED 150 million, you may be required to file monthly
- Return deadline: 28 days after the end of the VAT period (quarter or month); e.g., Q1 (January-March) return due 28 April
- VAT payment: due on the same day as the return; pay via EmaraTax portal (bank transfer, GIBAN — Government IBAN)
- Late filing penalty: AED 1,000 for first offence; AED 2,000 for repeat within 24 months
- Late payment penalty: 2% of unpaid VAT immediately; 4% after 7 days; 1% daily after 30 days (capped at 300%)
UAE VAT — Common Mistakes to Avoid
- Not registering on time: once you cross AED 375,000, you have 30 days to register; the FTA can impose penalties even if you were unaware you crossed the threshold
- Wrong invoicing: VAT invoices must include your TRN, the customer’s TRN (for B2B), the VAT amount separately, and the 5% rate stated; incorrect invoices are a compliance risk
- Input VAT on entertainment: entertainment for clients (meals, events) = 50% input VAT recovery only; many businesses incorrectly claim 100%
- Charging VAT on exempt supplies: financial services, residential property rental, local passenger transport are VAT-exempt; charging VAT on exempt supplies is an offence