Vat Registration Threshold Uae
VAT in the UAE is charged at 5% on most goods and services. Registration is mandatory when taxable supplies exceed AED 375,000 in 12 months. Voluntary registration is available at AED 187,500. The Federal Tax Authority (FTA) manages all VAT registrations through their online portal.
VAT registration process
- Create an FTA e-Services account
- Submit trade license and passport copies
- Provide bank account details (IBAN)
- Declare expected turnover and business activities
- Submit customs registration (if importing/exporting)
- Processing takes 5-20 business days
- TRN (Tax Registration Number) issued upon approval
Ongoing obligations
- File VAT returns quarterly (or monthly for large businesses)
- Maintain records for 5 years minimum
- Issue VAT-compliant tax invoices
- Pay VAT due within 28 days of period end
- Report reverse charge on imports
Pro tip
File your VAT return even if you have zero transactions — late filing attracts AED 1,000 penalty.
Watch out
Incorrect VAT calculations can result in penalties of up to 50% of the unpaid tax amount.