VAT Registration in UAE

What is VAT in UAE?

Value Added Tax (VAT) is an indirect tax levied on the consumption of goods and services. The standard VAT rate in the UAE is 5%, and it applies to most goods and services unless they are exempt or zero-rated.

Introduced in January 2018, VAT helps the UAE diversify its economy and reduce dependency on oil revenues. The VAT collected supports public services such as healthcare, education, and infrastructure.

To learn more, visit our detailed service page on VAT Registration in UAE.

Who Needs to Register for VAT?

• Mandatory VAT Registration: Businesses with taxable turnover over AED 375,000 annually.
• Voluntary VAT Registration: Businesses with turnover or expenses exceeding AED 187,500.

This applies to both mainland and free zone companies operating in the UAE.

How to Register for VAT in UAE

The VAT registration process is completely online through the Federal Tax Authority (FTA) portal.

1. Create an account on the FTA portal.
2. Fill in the business and TRN application form.
3. Upload the required documents (listed below).
4. Submit the application and wait for approval.
5. Download your VAT certificate upon approval.

Track your application status via the FTA portal and retain all confirmation emails.

Documents Required

• Trade License Copy
• Emirates ID and Passport Copies of Owner/Partners
• Company Contact and Bank Details
• Memorandum of Association (MOA)
• Financial or Turnover Details
• Customs Registration (if applicable)

Accurate documentation speeds up the approval process and avoids unnecessary delays.

Timeline and Approval Process

Typically, VAT registration approval in UAE takes between 5–20 working days, depending on the FTA’s review speed and document accuracy.

Once approved, you'll receive a Tax Registration Number (TRN) and digital VAT certificate for invoicing and compliance.

Penalties for Non-Compliance

• Failure to register: AED 10,000
• Not displaying TRN on invoice: AED 5,000
• Late VAT return filing: AED 1,000 (first time), AED 2,000 (repeat offense)
• Poor record keeping: AED 10,000

To avoid penalties, ensure proper VAT registration and timely compliance with FTA rules.

Need Help with VAT Registration?

Unicorn Global Solutions is here to assist you with every step of the VAT registration process in the UAE.

Contact us today or chat with us on WhatsApp for a free consultation.

Or directly visit our VAT Registration Service Page for detailed information and assistance.