VAT registration in the UAE: thresholds, deadlines, done right
The FTA registration fee is AED 0 and registration takes days — what costs money is doing it late or wrong. The thresholds, the penalties and the calendar, straight from the law.
- Mandatory above
- AED 375,000 turnover
- Voluntary from
- AED 187,500
- FTA registration fee
- free (EmaraTax)
- Late registration
- AED 10,000 penalty
VAT registration: thresholds and penalties
The FTA registration fee is AED 0 — the other official numbers on this page are the thresholds that trigger registration and the penalties for missing them.
| Item | Amount | Source |
|---|---|---|
| Mandatory registration threshold | AED 375,000 taxable turnover | Federal Decree-Law 8/2017 |
| Voluntary registration threshold | AED 187,500 | Federal Decree-Law 8/2017 |
| FTA registration fee | AED 0 — free on EmaraTax | FTA |
| Late registration penalty | AED 10,000 | FTA administrative penalties |
| Late return filing | AED 1,000 · AED 2,000 on repeat within 24 months | FTA administrative penalties |
Taxable turnover over 12 months, per Federal Decree-Law 8/2017.
- The 375,000 test looks backwards (last 12 months) and forwards (next 30 days) — the forward test is the one growing businesses miss.
- The Dubase VAT registration service costs AED 2,800; the FTA registration fee is AED 0.
The VAT calendar you sign up for
Registration is a one-off; the calendar is forever. Each return has one deadline for both filing and payment.
Recurring obligations
| Obligation | Deadline |
|---|---|
| VAT return (typically quarterly) | Within 28 days of period end |
| VAT payment | Same 28-day deadline as the return |
| Records kept | 5 years minimum |
What triggers a change
| Event | What to do |
|---|---|
| Turnover falls below AED 187,500 | Deregistration becomes available |
| Business activity changes | Review taxable vs zero-rated treatment |
| FTA notice or audit | Respond with the records — see the honest part |
One deadline, two obligations: the return and its payment share the same 28-day window. Missing payment carries its own percentage-based penalties on top of the filing fine — the reason we run the calendar, not the client’s memory.
Where you probably are right now
Most VAT conversations start in one of these three places.
Approaching 375k
Growing business- The forward test counts: expected turnover in the next 30 days
- Registering on time costs nothing; late costs AED 10,000
- We file the application and set the return calendar
Between the thresholds
AED 187,500–375,000- Voluntary registration lets you recover input VAT
- Worth it when your costs carry VAT and clients are businesses
- We run the numbers before you commit to the calendar
Already late
Past the threshold- The AED 10,000 penalty exists — the sooner you regularise, the better
- Back-filings and disclosures are a known, fixable process
- We handle the catch-up quietly and completely
How VAT registration works, step by step
-
Threshold check
Backward and forward test on real figures — register, wait, or go voluntary.
-
EmaraTax application
Entity, activity and turnover evidence filed on the FTA portal. No government fee.
-
TRN issued
The FTA approves and issues the Tax Registration Number — invoicing rules apply from here.
-
Calendar set
Return periods confirmed, bookkeeping aligned so each return reconciles to the ledger.
-
Returns filed
Every period: return prepared, filed and paid within the 28-day window.
VAT rarely travels alone
Corporate tax registration
Unlike VAT, corporate tax registration has no threshold — every company registers, free zone included.
See corporate tax registrationAccounting services
Returns are only as good as the books behind them — we keep both in the same hands.
See accounting servicesNew company?
Setting up now: we register VAT at the right moment, not before it makes sense.
Company formationVAT vs corporate tax: two different registrations
| Feature | VAT | Corporate tax |
|---|---|---|
| Who registers | Above AED 375,000 turnover | Every taxable person — no threshold |
| Rate | 5% on taxable supplies | 9% on profit above AED 375,000 |
| Registration fee | Free (EmaraTax) | Free (EmaraTax) |
| Late registration | AED 10,000 | AED 10,000 |
| Return cadence | Typically quarterly, 28 days | Annual, within 9 months of FY end |
What a VAT provider can and cannot do for you
What we do: register you at the right time, keep the books that make every return defensible, file inside the window, and answer the FTA with records instead of excuses.
What nobody can do: make a missed deadline disappear or negotiate the 5%. Penalties are set by Cabinet Decision, not by your provider — anyone who promises otherwise is overselling. What good process buys you is never meeting those penalties.
UAE VAT at a glance
- 5%
- the VAT rate on taxable supplies
- 375k
- AED — the mandatory registration threshold
- 28
- days after each period to file and pay
- 0
- AED — what the FTA charges to register
The recurring risk is not the rate — it is the calendar. Every figure here traces to the VAT law and FTA publications.
VAT as part of the whole
We run VAT alongside the rest of your company’s life — one team, one thread.
- VAT registration
- VAT returns & payment
- Corporate tax registration
- Corporate tax returns
- Accounting & bookkeeping
- Tax audit support
What VAT registration actually requires
A short list — the work is in getting the turnover figures right.
Trade licence
Current licence of the registering entity.
Owner ID
Passport and Emirates ID of the authorised signatory.
Turnover evidence
Invoices or management figures supporting the threshold position.
Bank details
For refunds, if input VAT will exceed output.
Contact details
The EmaraTax account holder we register or use.
Activity description
Determines taxable vs zero-rated treatment.
VAT, term by term
Taxable turnover
The supplies that count toward the AED 375,000 test — including zero-rated ones, which is what surprises people.
TRN
Tax Registration Number: issued on approval, mandatory on every invoice from then on.
EmaraTax
The FTA portal where registration and every return happens. Registration itself is free.
Input VAT
The VAT you pay on costs — recoverable once registered, the upside of voluntary registration.
Zero-rated
0% VAT with input recovery (exports, some sectors) — different from exempt, which blocks recovery.
Deregistration
Available if turnover falls below AED 187,500; mandatory in some wind-down cases.
VAT registration: your questions, with the official numbers
When is VAT registration mandatory in the UAE?
When taxable turnover exceeds AED 375,000 over the last 12 months — or is expected to exceed it in the next 30 days. Voluntary registration is available from AED 187,500. The forward-looking test is the one growing businesses miss.
How much does VAT registration cost?
The FTA charges nothing — registration is free on EmaraTax. The Dubase VAT registration service costs AED 2,800. Registering late carries an AED 10,000 penalty; filing returns late costs AED 1,000, rising to AED 2,000 for repeats within 24 months.
What happens if I register late?
The late registration penalty is AED 10,000, and you remain liable for the VAT you should have charged since crossing the threshold. The sooner you regularise, the smaller the back-position — we handle the catch-up filings as one package.
How often are VAT returns filed?
Typically quarterly, with each return filed and paid within 28 days of the period end — one deadline for both obligations. Late payment carries its own percentage-based penalties on top of the filing fine.
Is voluntary registration worth it below the threshold?
Sometimes: from AED 187,500 you can register voluntarily and recover the VAT on your costs. It pays when your inputs carry VAT and your clients are VAT-registered businesses; it is a burden when they are consumers. We run your numbers before you commit to the calendar.
Do free zone companies register for VAT?
Yes — the AED 375,000 test applies to free zone companies like everyone else. Some designated-zone supplies have special treatment, but that affects how you charge VAT, not whether you register.
How long does VAT registration take?
The application takes days to prepare and the FTA typically issues the TRN within days to a few weeks. From TRN issue, invoicing rules apply immediately — we set the return calendar the same week.
Can I deregister from VAT later?
Yes — deregistration becomes available if taxable turnover falls below AED 187,500, and is required in some wind-down scenarios. It has its own deadline and process; leaving a dormant TRN unattended generates penalties by itself.
Where these numbers come from
Thresholds and penalties trace to the VAT law and the FTA. Rates and rules change — we verify before every engagement.
VAT, off your plate
Tell us where you are. Within 24 hours you get your threshold position, the calendar and the fee — in writing.
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