Register for VAT on time and from the right date. PROXPAT prepares the documents and EmaraTax application and tracks your deadlines, working alongside your registered tax agent.
Page last updated: . Requirements, government fees and processing times are set by the relevant UAE authority and can change.
VAT Registration in the UAE
Value Added Tax was introduced across the UAE on 1 January 2018 at a standard rate of 5%, and is administered by the Federal Tax Authority (FTA). Registration is done online through the FTA's EmaraTax platform, and the rules on when you must register, and from which date, are strict.
This page follows the FTA's VAT registration service and topic pages, the VAT Executive Regulation (Cabinet Decision No. 52 of 2017 and its amendments, as published by the FTA in September 2025), and Cabinet Decision No. 40 of 2017 on administrative penalties and its amendments.
Please note: PROXPAT is not a registered tax agent and this page is not tax advice. We prepare registration paperwork, coordinate submissions and track deadlines; formal tax advice should come from a registered tax agent.
Do You Have to Register? The Two Thresholds
| Registration | Threshold | How it is measured |
|---|---|---|
| Mandatory | AED 375,000 | Taxable supplies and imports over the previous 12 months, or expected to exceed it in the next 30 days |
| Voluntary | AED 187,500 | Taxable supplies, imports or taxable expenses over the previous 12 months, or expected in the next 30 days |
- Non-resident businesses. The FTA states the threshold does not apply to foreign businesses. A non-resident making taxable supplies in the UAE must register.
- Voluntary registrants must show they carry on a business in the UAE and intend to make taxable supplies. If registering on expected figures, they need evidence.
- Zero-rated only. A business whose supplies are only zero-rated can apply for an exception from registration, but must tell the FTA within 10 business days of making a standard-rated supply or import.
Deadlines and Effective Dates
| Situation | Rule |
|---|---|
| Application deadline | Within 30 days of being required to register (Article 7) |
| Threshold exceeded over the previous 12 months | Registration takes effect from the first day of the month after the month in which you were required to register |
| Threshold expected to be exceeded in the next 30 days | Registration takes effect from the date there were reasonable grounds to expect it |
| Non-resident required to register | Registration takes effect from the date supplies in the UAE started |
| Voluntary registration | Takes effect from the first day of the month after the application, or an earlier agreed date (Article 8) |
| No application made | The FTA registers the person from the date they first became liable and imposes penalties |
Because registration is back-dated to when the obligation arose, a late application does not avoid VAT on the earlier period. The cleanest position is to monitor the 12-month total every month.
A Worked Example
A trading company checks its rolling 12-month taxable supplies at the end of each month. At the end of March the total passes AED 375,000 for the first time.
Step 1: The company is now required to register.
Step 2: It must file its application within 30 days.
Step 3: Its registration takes effect from 1 April, the first day of the following month.
Step 4: From that date it charges 5% VAT on standard-rated supplies and files VAT returns.
Had the company expected in March that its supplies would pass the threshold within the next 30 days, the effective date would instead be the date that expectation arose.
Documents the FTA Asks For
- Certificate of incorporation or partnership agreement.
- Valid trade licence, including branch licences.
- Emirates ID and passport copies.
- An official declaration letter stating total taxable supplies and monthly sales.
- Supporting evidence such as invoices, contracts and ownership documents.
- A bank account letter (optional).
Sales figures in the declaration should match your invoices and bank records. Mismatches are a common reason for the FTA to ask for more information. Keep VAT records for the required periods; see accounting and record keeping. See government documentation processing.
Registering on EmaraTax
Step 1: Create and activate an EmaraTax account.
Step 2: Open the dashboard and create a new taxable person profile.
Step 3: Select "Register" under Value Added Tax.
Step 4: Complete the application and upload the documents.
Step 5: Submit and track the FTA's review.
| Topic | FTA position |
|---|---|
| Fee | Free |
| Time to complete the application | About 45 minutes |
| FTA processing | 20 business days from receipt of a complete application |
| Branches | One Tax Registration Number covers the sole establishments or branches of the same entity |
Tax Groups
Related legal persons can register as a VAT group, subject to the conditions in the VAT law:
- The group appoints one registered member as its representative member, which makes the application.
- The FTA decides within 20 business days of receiving it.
- Group registration normally takes effect from the first day of the tax period after the application, or a date the FTA sets.
- Supplies between members may be disregarded, and the group's supplies, output tax and input tax are treated as the representative member's.
- All members remain jointly liable for the tax due from the representative member.
- The FTA may refuse a group where a member is not a legal person, or where the group would enable tax evasion.
Deregistration
| Topic | Rule |
|---|---|
| Deadline | Apply within 20 business days of the event requiring deregistration (Article 14) |
| When the FTA accepts | The business has stopped making taxable supplies and does not expect to make any in the next 12 months; or its supplies or taxable expenses over the previous 12 months are below AED 187,500 and not expected to exceed it in the next 30 days |
| Effective date | Generally the last day of the tax period in which the conditions were met, or another date the FTA sets |
| FTA-initiated | The FTA can deregister a business itself where the conditions are met |
| Earlier liabilities | Deregistration does not remove obligations that arose while registered (Article 18) |
Closing a company? Deregister for VAT as part of the wind-down, not after it. See company liquidation in the UAE. See visa cancellation and establishment card for the other files to close.
Penalties Linked to Registration
| Violation | Penalty |
|---|---|
| Failing to submit a registration application within the legal timeframe | AED 10,000 |
| Failing to submit a deregistration application within the legal timeframe | AED 1,000 on late submission, then on the same date each month, up to AED 10,000 |
| Failing to provide tax data, records and documents in Arabic when requested | AED 5,000 |
The published version reflects amendments up to Cabinet Decision No. 129 of 2025, effective 14 April 2026.
VAT Basics for a New Registrant
- Standard rate: 5%.
- Zero-rated examples listed by the Ministry of Finance: exports of goods and services outside the GCC, international transport and related supplies, certain investment precious metals, the first supply of new residential property within three years of completion, and designated education and healthcare services.
- Exempt: residential property sales and leases are generally exempt.
- Separate from corporate tax. VAT registration does not register you for corporate tax. See corporate tax registration.
How PROXPAT Helps
Monthly 12-month threshold tracking
Document and declaration pack
EmaraTax account and application
Coordination with your registered tax agent
Tax group paperwork
Deregistration during company closure
Trade licence and branch records alignment
Deadline reminders to avoid penalties
We work alongside a registered tax agent for tax advice, returns and technical positions.
Frequently Asked Questions
Keep your company compliant from day one.
Explore connected PROXPAT services that support the same client journey.
The licence is the start of the government work, not the end of it
Once the trade licence is issued, the sequence that actually lets you operate begins: the establishment card, the MOHRE and immigration files, your employee quota, then employee visas and work permits. After that it repeats every year — renewals, cancellations when people leave, and licence renewal and amendments.
Companies that would rather not build that function in-house put it on a monthly PRO retainer from AED 700, or use it per transaction. Government fees stay separate and itemised either way.
The first six months after incorporation
- Establishment card issued through immigration
- MOHRE file opened and e-signature completed
- Employee quota checked before hiring
- Offer letters, work permits and entry permits
- Medical, Emirates ID and visa stamping
- Corporate tax and VAT registration where they apply
More in Licences and Compliance
Register for VAT on Time
PROXPAT tracks your threshold, prepares the documents and EmaraTax application, and coordinates with your registered tax agent so the effective date and penalties are handled correctly.