The short answer
You must register for VAT in the UAE once your taxable turnover passes AED 375,000 over the past 12 months, or once you expect to pass it within the next 30 days. Registration happens through the Federal Tax Authority (FTA) on the EmaraTax portal, and once approved you receive a Tax Registration Number (TRN). The standard VAT rate is 5%. You can also register voluntarily from AED 187,500 in taxable turnover or expenses. These figures and the current rules should always be confirmed with the FTA or with CorpWise before you file.
VAT is a turnover-based tax. It is separate from UAE corporate tax, which is charged on profit — do not treat them as the same thing. We cover the difference below.
Who must register for VAT
There are two paths into the VAT system: mandatory and voluntary. Which one applies to you depends on your taxable turnover — broadly, the value of the taxable goods and services your business supplies.
Mandatory registration
Registration is mandatory once either of these is true:
- Past 12 months: your total taxable turnover has exceeded AED 375,000.
- Next 30 days: you expect your taxable turnover to exceed AED 375,000.
If you cross the mandatory threshold, you are required to register — it is not optional, and late registration can expose you to penalties. Do not wait for a year-end review to check; monitor turnover on a rolling basis so you catch the threshold as it approaches.
Voluntary registration
You can choose to register before you are legally required to, once your taxable turnover or your taxable expenses reach AED 187,500. Voluntary registration is common for younger or growing businesses because it lets you recover input VAT on your costs and signals credibility to larger clients who expect a valid TRN on invoices. The trade-off is the added compliance work of filing returns, so weigh it against your stage and cash flow.
Documents you need
Gather your paperwork before you start the application — having it ready makes the EmaraTax process far quicker. Requirements vary by business type, so confirm the current checklist with the FTA or CorpWise, but you will typically need:
- Trade licence: a valid copy of your commercial or professional licence.
- Owner and manager IDs: passport and Emirates ID copies for the owner, partners, and authorised signatory.
- Company details: legal structure, business activities, and contact information.
- Financial evidence: turnover figures, bank account details, and supporting records such as invoices or contracts that show you meet the threshold.
- Customs registration: your customs details, if you import or export goods.
How to register: step by step
VAT registration is completed entirely online through EmaraTax. The flow is straightforward once your documents are in order:
- Create an EmaraTax account. Go to the FTA EmaraTax portal, sign up with your email or UAE Pass, and set up your taxable person profile for the business you are registering.
- Complete the VAT registration application. Open the VAT registration form and enter your business details — licence information, activities, turnover figures, and the basis on which you qualify (mandatory or voluntary).
- Upload and submit your documents. Attach your trade licence, IDs, and financial evidence, review every field for accuracy, and submit the application to the FTA for review.
- Receive your TRN. Once the FTA approves your application, you are issued a Tax Registration Number. From that point you must charge 5% VAT where it applies, show your TRN on tax invoices, and file returns on schedule.
If any detail is wrong or a document is missing, the FTA may ask for clarification, which delays approval. A careful first submission is the fastest route through — this is where working with CorpWise saves time.
VAT vs corporate tax - don't confuse them
These are two different taxes with two different triggers, and mixing them up is one of the most common mistakes we see.
- VAT: charged at 5% on taxable supplies, based on turnover. You collect it from customers and pass it to the FTA, registering once you cross AED 375,000 in taxable turnover.
- Corporate tax: charged at 9% on business profit above AED 375,000, based on what your business earns after costs. It is a tax on profit, not on sales.
The AED 375,000 figure appears in both, which is exactly why people conflate them — but one measures turnover and the other measures profit. A business can be registered for VAT and also be within scope of corporate tax; they are assessed and filed separately. For how corporate tax interacts with free zones, see our guide on corporate tax and free zones and what QFZP means for you.
After registration: filing returns
Getting your TRN is the start, not the finish. As a registered business you must file VAT returns through EmaraTax, reporting the VAT you charged (output tax) against the VAT you paid on your own purchases (input tax), and pay any difference to the FTA.
Returns are typically filed quarterly, though some businesses are assigned monthly periods depending on their profile. The FTA sets your filing period and deadlines when you register, so check them in your EmaraTax account and treat them as fixed. Missing a filing or a payment deadline can trigger penalties, so build the dates into your calendar and keep clean records of every invoice. Confirm your current filing frequency and due dates directly with the FTA, as these can change.
FAQ
What is the VAT threshold in the UAE?
The mandatory registration threshold is AED 375,000 in taxable turnover — measured either over the past 12 months or expected in the next 30 days. Voluntary registration is available from AED 187,500 in taxable turnover or expenses. Confirm the current figures with the FTA.
Is VAT registration mandatory?
Yes, once your taxable turnover crosses AED 375,000 you are legally required to register. Below that, registration is voluntary from AED 187,500, and below AED 187,500 you generally cannot register. Late mandatory registration can result in penalties.
How long does VAT registration take?
Once you submit a complete application through EmaraTax, the FTA reviews it and issues your TRN if everything is in order. Timelines vary, and requests for further information will extend the process — a complete, accurate submission is the best way to keep it short. Check the FTA for current processing times.
Do free zone companies pay VAT?
Free zone companies are generally within the UAE VAT system and must register once they cross the threshold. Certain designated zones have specific treatment for some supplies of goods, but this is narrower than most people assume and does not exempt a free zone business from VAT by default. Confirm your position with the FTA or CorpWise.
What is a TRN?
A TRN, or Tax Registration Number, is the unique number the FTA issues when your VAT registration is approved. You must show it on your tax invoices and use it when filing returns. It is how the FTA identifies your business within the VAT system.
What is the difference between VAT and corporate tax?
VAT is a 5% tax on taxable turnover that you collect from customers and remit to the FTA. Corporate tax is a 9% tax on business profit above AED 375,000. One is based on sales, the other on profit — they are separate taxes with separate filings.
Ready to register, or unsure which threshold applies to you? Talk to CorpWise and we will handle it properly. If you are still setting up, start with how to set up a company in the UAE in 2026 and how much it costs to set up a company in Dubai in 2026.
