Registration for UAE VAT becomes compulsory when the value of your taxable supplies and imports passes AED 375,000 in any 12-month period, or when you expect to pass it within the next 30 days. From that point you have 30 days to apply through EmaraTax, the Federal Tax Authority's online platform. Miss the window and the FTA can register you from the date you became liable, charge an AED 10,000 penalty and collect the VAT you should have charged.
The figures below are as of October 2026, under Federal Decree-Law No. 8 of 2017 and its Executive Regulation, Cabinet Decision No. 52 of 2017, both amended several times since. This is general information, not tax advice.
Which threshold applies to you?
| Mandatory | Voluntary | |
|---|---|---|
| Threshold | AED 375,000 | AED 187,500 |
| What counts | Taxable supplies and imports | Taxable supplies and imports, or taxable expenses |
| Look-back test | Previous 12 months | Previous 12 months, checked at a month-end |
| Look-ahead test | Next 30 days | Next 30 days |
Non-resident businesses have no threshold. They must register if they make taxable supplies in the UAE and nobody else in the UAE is responsible for the VAT on them.
What goes into the total:
- Standard-rated and zero-rated sales both count. Exempt supplies don't.
- Imports count. Goods and services bought from abroad are included, so a business paying for overseas software or consultants can cross the line without large local sales.
- Selling your own capital assets doesn't count. An old vehicle or equipment sale is left out.
- One owner, one threshold. All sole establishments owned by the same person share a single tax registration number, and their turnover is added together. A company's branches sit under the company's registration.
How the 12-month and 30-day tests work
The look-back test is rolling. At the end of each month, add up your taxable supplies for the previous 12 months, whatever your financial year is.
Say you open a design studio in January 2026 and your invoices reach AED 390,000 by the end of September. You crossed the threshold in September, so you must apply within 30 days. Whether or not you apply, the FTA registers you with effect from 1 October, the first day of the following month.
The look-ahead test catches large contracts. If you sign a deal in March to deliver AED 400,000 of goods the following month, you expect to exceed the threshold within 30 days and must register now. Registration then takes effect from the date there were reasonable grounds to expect it.
The real cost of registering late is rarely the penalty alone. A late registrant must still account for VAT on taxable supplies and imports made from the date it should have been registered. If you didn't charge your customers VAT at the time, it comes out of your margin.
How to register on EmaraTax
Registration is free, and the FTA estimates about 45 minutes to complete the form. FTA services are accessed through UAE Pass.
- Sign up for an EmaraTax account and activate it.
- Open the dashboard and create a taxable person profile for the business.
- Click "View" to open that taxable person's account.
- Under Value Added Tax, click "Register".
- Complete the application, upload your documents and submit.
The FTA's published processing time is 20 business days from receipt of a complete application. Once approved, the VAT registration certificate appears in your EmaraTax dashboard.
Documents to have ready
The list depends on the legal form. For a company it usually includes:
- certificate of incorporation, memorandum of association or partnership agreement
- trade licence, plus any branch licences
- Emirates ID and passport copies for owners and authorised signatories
- power of attorney for the signatory, if the manager isn't named in the memorandum
- a signed and stamped declaration of taxable supplies, showing monthly sales from the start of the business to the application date
- supporting evidence such as invoices, purchase orders, contracts or leases; for a registration based on expenses, at least five VAT invoices
- customs details, if they apply to you
- a bank letter with account details (optional)
Uploads must be PDFs of up to 15 MB each. A turnover declaration that doesn't match the invoices invites questions, so build it from your sales ledger rather than from memory.
After you get your tax registration number
Registration starts a routine you have to keep up:
- Tax periods. The standard period is three months. The FTA can assign a different length, and you can ask for your quarters to end in a particular month, which the FTA may accept.
- Returns and payment. Each return, and the VAT due, must reach the FTA by the 28th day after the end of the tax period.
- Records. Keep accounting records for at least five years after the tax period they relate to, and seven years for real-estate records.
- E-invoicing. The Ministry of Finance is phasing in mandatory e-invoicing. Under the current timeline, businesses in scope with revenue under AED 50 million must appoint an accredited service provider by 31 March 2027 and go live by 1 July 2027. Our guide to e-invoicing in the UAE covers who is in scope.
The main penalties, as of October 2026, under Cabinet Decision No. 40 of 2017 as amended by Cabinet Decision No. 129 of 2025 (in force since 14 April 2026):
| What goes wrong | Penalty |
|---|---|
| Registration application late | AED 10,000 |
| Return filed late | AED 1,000; AED 2,000 if repeated within 24 months |
| VAT paid late | 14% a year, charged monthly on the unpaid amount |
| Tax record not updated | AED 1,000; AED 5,000 if repeated within 24 months |
| Deregistration application late | AED 1,000 a month, up to AED 10,000 |
If you stop making taxable supplies, you must apply to deregister within 20 business days. Corporate tax is a separate registration with its own deadlines: being registered for VAT does not register you for corporate tax. Our UAE corporate tax guide explains that side.
Free zones and designated zones
A free zone address does not take you out of VAT. Only designated zones listed under Cabinet Decision No. 59 of 2017 and its amendments, which also meet the conditions in Article 51 of the Executive Regulation, are treated as outside the UAE. Those conditions include a fenced area with security and customs controls and procedures for storing and processing goods. Even there, the special treatment is mainly about goods:
- goods can move between designated zones without VAT, provided they aren't released, used or altered on the way and customs suspension rules are followed
- goods supplied within a designated zone to be consumed there are generally treated as supplied in the UAE
- services supplied in a designated zone are treated as supplied in the UAE, so a free zone consultancy charges VAT on the same basis as a mainland one
The FTA's October 2026 public clarification tells businesses to check the published list of designated zones and confirm with their free zone authority that their specific area meets the conditions. If you trade goods from a designated zone, the FTA may ask for a business flow showing how the goods move. If you are still choosing where to set up, our business setup team can build VAT into that decision.
Mistakes that turn into penalties
- Measuring the wrong year. The test is any 12 months ending at a month-end, not your financial year.
- Ignoring the 30-day test. One large contract can make you liable before you have issued a single invoice.
- Splitting the business. Where related businesses are artificially separated to stay under the threshold, the FTA can add their supplies together.
- Forgetting imports. Services bought from abroad count toward the total.
- Underestimating online sales. E-commerce sellers often cross the line sooner than planned; our guide to starting an e-commerce business in Dubai covers the licensing side.
- Registering voluntarily without the admin in place. Quarterly returns start straight away, and a voluntary registration can't be cancelled in its first 12 months.
Good records make all of this easier, and our guide to bookkeeping and audit requirements explains what to keep. If you want your turnover position checked before you apply, book a free consultation.
Sources
- Federal Tax Authority: Registration for VAT
- Federal Tax Authority: VAT registration service on EmaraTax
- Executive Regulation of the VAT Law, Cabinet Decision No. 52 of 2017 and amendments (September 2026 consolidation)
- Cabinet Decision No. 40 of 2017 on administrative penalties, with amendments
- FTA Public Clarification TAXP010: Free Zones and Designated Zones for Tax Purposes
- Ministerial Decision No. 244 of 2025 on implementing the e-invoicing system, as amended
Frequently asked questions
Do I need a trade licence to register for VAT?
Can a new company register for VAT before it starts trading?
How long does VAT registration take?
Can I cancel a voluntary VAT registration?
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