UAE VAT Registration in 2026: Threshold, Process and Deadlines
A complete guide to UAE Value Added Tax: who must register, who should register voluntarily, how to file, and what happens if you miss a deadline.
UAE VAT is a 5 percent tax on most goods and services. Any business whose taxable turnover crosses AED 375,000 in a rolling 12-month window must register with the Federal Tax Authority (FTA). Voluntary registration opens from AED 187,500. Here is how it works in 2026.
Who must register
- Mandatory: taxable supplies or imports above AED 375,000 in the past 12 months, or expected to cross it in the next 30 days.
- Voluntary: taxable supplies, imports or expenses above AED 187,500 in the past 12 months.
- Non-resident sellers: any taxable supply made inside the UAE, no threshold applies.
What counts as taxable turnover
Taxable turnover includes standard-rated supplies (5 percent), zero-rated supplies (0 percent) and reverse-charged imports. It excludes exempt supplies such as residential rents, local passenger transport and certain financial services.
Documents required
- Trade licence copy
- Passport and Emirates ID of all shareholders and the authorised signatory
- Memorandum of Association and Certificate of Incorporation
- Bank account details (IBAN confirmation letter)
- Turnover declaration for the past 12 months with supporting invoices or financials
- Customs code if you import or export
Step by step registration
1. Create an EmaraTax account. Use the UAE Pass or email signup at tax.gov.ae.
2. Submit the VAT registration form. Fill business, financial and banking details. Upload documents.
3. Receive TRN. The Tax Registration Number arrives in 5 to 20 working days.
4. Start charging VAT. Issue compliant tax invoices from the effective registration date.
Filing frequency
- Default: quarterly VAT return, due 28 days after the quarter end.
- Large taxpayers above AED 150 million turnover: monthly filing.
- Nil returns required even in quarters with no activity.
Input tax recovery
Businesses can reclaim VAT paid on inputs used to make taxable supplies. You cannot reclaim VAT on entertainment expenses, employee-use vehicles with personal mileage, or supplies linked to exempt income. Keep tax invoices and import documents for 5 years.
Penalties
- Late registration: AED 10,000.
- Late return filing: AED 1,000 first offence, AED 2,000 if repeated within 24 months.
- Late payment: 2 percent of unpaid tax on the first day late, 4 percent after 7 days, then up to 300 percent cumulative.
- Incorrect records: AED 5,000 to AED 15,000.
Even if you expect turnover below AED 375,000, voluntary registration above AED 187,500 is often worth it: you reclaim VAT on setup costs, rent and professional fees. For software, consultancy and import businesses that is often more than the compliance cost.
Register and file through our tax and compliance service, or plan around VAT when you set up your free zone company or mainland LLC.
Frequently asked questions
When do I have to register for UAE VAT?
The moment your rolling 12-month taxable turnover crosses AED 375,000, or when you expect to cross it in the next 30 days. Registration is mandatory and must be done within 30 days of crossing the threshold.
Can I register for VAT if I am below the threshold?
Yes. Voluntary registration is allowed once turnover or taxable expenses exceed AED 187,500 in the past 12 months. Useful for startups that want to reclaim input VAT on setup costs.
How long does VAT registration take?
The TRN usually arrives 5 to 20 working days after submission on EmaraTax, provided documents are complete.
Is my free zone company exempt from VAT?
No. Free zone companies pay VAT the same way mainland companies do. Designated zones (JAFZA, DMCC, KIZAD and a few others) have special rules on goods moving within and between them, but services and most B2C transactions are standard-rated.
What is the VAT rate on exports?
Exports of goods and services outside the GCC are zero-rated (0 percent), but still appear on the VAT return. You can reclaim input VAT on expenses tied to these exports.