VAT registration for new companies

Last verified: 2026-10-06

Summary

VAT registration in the UAE is handled by the Federal Tax Authority (FTA). Whether a new company must or may register depends on the value of its taxable supplies and imports. This guide summarises the thresholds and the application process shown on tax.gov.ae.

Thresholds

As of 2026-10-06, the FTA’s registration page states:

• The mandatory registration threshold is AED 375,000. A business must register if the total value of its taxable supplies and imports exceeds this amount over the previous 12 months, or if it expects to exceed it within the next 30 days. The page states this threshold does not apply to foreign businesses.
• The voluntary registration threshold is AED 187,500. A business below the mandatory threshold may register voluntarily if its taxable supplies, imports or expenses exceed this amount, looking back 12 months or forward 30 days.

The FTA’s VAT registration service page also says that registration is mandatory for a non-resident business that makes taxable supplies in the UAE, even if the value of supplies does not exceed the threshold, unless another party in the UAE is responsible for settling the VAT on those supplies.

The process

The FTA’s registration page states that FTA services are only available through UAEPass. The service page lists these steps:

1. Sign up for an EmaraTax account on the FTA website and activate it. EmaraTax is available 24 hours a day, 7 days a week.
2. Access the account dashboard.
3. Create a new taxable person profile.
4. Click “Register” under Value Added Tax and complete the registration process, attaching supporting documents.

The page gives an estimated 45 minutes to submit and 20 business days from the date the FTA receives the completed application.

Documents listed on the page include the commercial registration and trade licence, the Emirates ID and passport of owners and authorised signatories, a stamped and signed declaration letter stating taxable supplies, supporting documents such as invoices or contracts, and optionally bank account details. Files are accepted as PDF, up to 15 MB each. The page notes a single registration number covers all sole establishments per owner and that multiple branches register under one number.

Mandatory and voluntary registration compared

The two thresholds answer different questions. The mandatory threshold of AED 375,000 measures taxable supplies and imports, and crossing it creates an obligation to register. The voluntary threshold of AED 187,500 is lower and also counts expenses, and reaching it gives a business the option, not the duty, to register. Both tests look back over 12 months or forward over the next 30 days. The FTA’s registration page points to a VAT User Guide and an e-Learning video for further detail.

Deadlines and timing

The FTA service page states that a person required to register must submit a registration application within 30 days of being required to register, and that a late registration penalty is imposed under the applicable tax legislation if the application is not submitted by the deadline.

What it costs

The FTA lists the VAT registration service as free of charge. Other costs of setting up and running a company vary by structure and licence; use the comparison tool on this site rather than relying on this guide for figures.

Common pitfalls

• Looking only at past turnover. The 30-day forward-looking test can trigger mandatory registration earlier.
• Counting only sales. The voluntary threshold also counts imports and expenses.
• Incomplete applications. The FTA’s 20 business day estimate runs from the date the completed application was received.
• Submitting inaccurate financial data. The FTA page refers to punitive actions under applicable laws.

Check the authority

Thresholds, penalties and procedures change, and individual circumstances differ. Check the Federal Tax Authority (tax.gov.ae) for the current position before applying.

Figures and details in this guide are as stated on the cited official pages as of 6 October 2026.

Sources

• https://tax.gov.ae/en/taxes/Vat/vat.topics/registration.for.vat.aspx
• https://tax.gov.ae/en/services/vat.registration.aspx

This information is general; rules and fees can change. Check current details with the relevant authority.

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