VAT Registration in UAE for New Companies: Your Easy 2026 Guide

VAT registration keeps new UAE companies safe and legal. It helps you comply with tax rules as you grow your business. This full guide walks you through every step. The Federal Tax Authority (FTA) oversees all VAT. You will learn who needs to register, which documents to obtain, and how to complete the registration quickly. New 2026 rules make it simple. Follow this to get your Tax Registration Number (TRN) without stress.

This post comes from pros who help businesses every day. We know UAE tax laws well. Read on for clear steps that match official guides. Stay compliant and save time.

What Is VAT Registration in UAE? 

VAT Registration for New Company in UAE: Why It Matters

VAT means Value Added Tax. It is a 5% tax on most goods and services in the UAE. Businesses add it to sales and pay it to the FTA. New companies must check if they need to register.

Why register? It lets you charge VAT legally. You can also get back the VAT you paid on purchases. Without it, you may incur fines of up to AED 20,000. An expert says all new firms should watch their sales closely.

Two types exist. Mandatory happens when sales hit AED 375,000 in 12 months. Or if you expect that much soon. Voluntary starts at AED 187,500. It helps small firms recover costs.

Over 600,000 UAE businesses registered by 2026. Free zones and the mainland all follow the same rules. No one skips it if sales grow fast.

Who Must Register for VAT?

Not every new company registers right away. Check your sales first.

Mandatory registration fits if:

• Your taxable sales exceeded AED 375,000 in the last 12 months.
• You expect to receive AED 375,000 within the next 30 days.

Voluntary work if sales top AED 187,500. Why choose it? Recover input VAT on office rent, tech, or imports.

Exemptions help some. Healthcare, education, or exports often skip. But confirm with FTA. New startups in Dubai or Abu Dhabi grow quickly. Track monthly sales from day one.

Example: A Dubai shop sells for AED 30,000 per month. In year one, it hits AED 400,000. Register mandatory. A consultant at AED 200,000 picks voluntary refunds.

The FTA portal shows your status. Log in early. Over 70% of free zone firms register voluntarily first.

Benefits of Timely VAT Registration in UAE

Register for VAT on time in the UAE. You win big right away. The new companies grow faster when compliant. Here are the top perks.

• Follow the UAE VAT 5 percent rule to charge legally on standard supplies. Customers expect it on bills. Your shop or service looks pro. No hiding tax anymore.​
• Claim input VAT back. Paid tax on rent, computers, or imports? Get the most back. This saves cash for new firms. Example: Spend AED 50,000 on office setup. Claim AED 2,500 VAT. Use it to hire staff.
• Boost cash flow. Refunds come quickly after returns. No waiting months. Growing Dubai startups love this.
• Build trust with banks and partners. The VAT TRN shows you comply with the rules. Big firms pick registered suppliers. Government tenders open too.​
• Skip fines. Late registration costs range from AED 10,000 to AED 50,000. Plus 2% monthly extra. On-time means zero worry.​
• Better money books. Track sales and costs clearly. Plan growth smart. Audits go smoothly with good records.
• World trade helps. Exports get 0% VAT. Imports are claimed to be easy. UAE free zones shine here.

Step-by-Step Process of How to Register for VAT in UAE

Step 1: FTA VAT Registration UAE: Create an Account First

• Start here. Every registration needs an FTA account. Set up with the Federal Tax Authority UAE e-Services.
• Go to FTA VAT registration UAE tax.gov.ae. Click “e-Services.” Pick “New User.” Use your email and phone.
• UAE Pass speeds it. Link your Emirates ID. Non-residents use passport details.
• Verify with the code sent to your phone. Set a password. Done in 5 minutes.
• Why first? No account, no form. Experts say treat it like a Gmail sign-up. Simple and quick.
• Log in often. Track returns later, too. Save login safe.

Step 2: Gather All Needed Documents

Prep papers before form. Miss one, and FTA asks again.

Must-have list:

• Trade License (PDF copy).
• Company Incorporation Certificate.
• Memorandum of Association (MoA) or Articles (AoA).
• Manager and owner, Emirates ID or passports.
• Contact details for business.
• Bank account proof.
• Turnover letter (sales proof).
• Sample invoices.
• List of other UAE firms (last 5 years).

Arabic names needed. Use Google Translate for the business name.

Small firms need less. But big ones add branch lists. Get all ready in one folder.​​

Documents Checklist for VAT Registration in UAE

Gather all papers before you start. Missing one delay your TRN by weeks. Here are the must-haves for new UAE companies. FTA needs clear PDFs under 5MB each. Scan them sharp and name files right, like “Trade-License-YourCompany.pdf”.

Here is the full list:

• Trade License: Copy of your valid license from DED or free zone. Proves you run a real business.
• Incorporation Certificate: For LLCs or companies. Shows the legal setup date and place.​
• Memorandum of Association (MoA) or Articles of Association (AoA): Details owners and rules.​
• Passport and Emirates ID: Copies for owners, managers, and authorised signers. All partners, too.
• Turnover Declaration Letter: Signed and stamped on company paper. Shows sales for the last 12 months or expected for the next 30 days. Must hit AED 375K or 187.5K.​
• Sample Invoices: 2-3 recent ones. Prove how you bill customers.​
• Bank Account Details: IBAN, bank name, account number. For refunds and payments.​
• Contact Information: Business email, UAE phone, full address, P.O. Box.​
• Business Activities List: What you sell or do. Match your license.​
• Authorised Signatory Proof: Power of Attorney or board resolution if not the owner.

Step 3: Fill the VAT Registration Form

• Log in to the EmaraTax portal UAE to access the 8-section form.
• Eight sections wait. Take time on each.

Section 1: Entity Details

Enter the name as on the license. Add Arabic version. Use the license issue date for the start.

Section 2: Identification

Upload Trade License. List activities like “trading” or “consulting.” Note ownership percentage.

Section 3: Local Branches

Skip if none. Add addresses if yes.

Section 4: Eligibility

Enter sales numbers. Upload turnover letter. Show why you should register now.

Section 5: Contact Info

Phone, email, and address. Who answers FTA calls?

Section 6: Bank Details

IBAN, bank name. For refunds and payments.

Section 7: Additional Info

FTA special asks go here.

Section 8: Signatory

Manager details. Upload ID. Affirm all true.

Save often. Errors block submit.​​

Step 4: Review, Affirm, and Submit

• Double-check every box. Numbers match docs? Names spell right?
• Click “Affirm.” Promise info is true. FTA trusts this.
• Upload all files. Hit submit.
• Get the acknowledgement number. Save PDF. FTA reviews in 10-20 days.
• They may email for more. Reply fast.​

Step 5: Get Approval and TRN

• Approved? Download VAT Certificate. It has your TRN.
• TRN is 15 digits. Use it for invoices, returns, and login.
• Print certificate. Share with banks.
• Now charge VAT. File returns every quarter or month.
• Rejections are rare when the documentation is good. Fix and resubmit for free.​
• The UAE Tax Registration Number (TRN) is issued within 10-20 days.

Post-Registration Duties after VAT Registration in UAE

VAT Return Filing UAE: Quarterly Deadlines

• VAT life starts. Issue VAT invoices. Show TRN, 5% rate, total.
• File returns on time. Quarterly for most. Use the portal.
• Keep records for 5 years. Sales, buys, invoices.
• Pay net VAT. Collected minus input. VAT return filing UAE is due on the 28th of next month.
• Audits check all.
• 2026 update: Easier reverse charge. Five-year refund limit. Stay sharp.

When to Register: Mandatory VAT Registration UAE

New UAE companies grow fast. You must watch sales from month one. Free zones qualify as designated zones VAT in the UAE (suspended inputs).

Mandatory VAT registration UAE kicks in at AED 375,000 sales. This means your taxable sales and imports hit that in the last 12 months. Or you expect it in the next 30 days. Taxable sales count goods, services at 5% or 0% VAT. Skip exempt items like school fees.

Example: Your Dubai tech shop sells for AED 32,000 per month. In 12 months, that is AED 384,000. Register the mandatory right away.

Voluntary VAT Registration UAE: AED 187.5K Benefits

Pick voluntary VAT registration UAE to claim input tax. Great for startups with high costs but low sales.

No VAT Registration UAE threshold for foreign firms with UAE sales. Act quickly. Late fines hit AED 10,000 plus interest. Track with bank statements monthly.

VAT Exemptions: Who Can Skip?

Some businesses skip VAT. The accountants check for you first. They check whether you qualify for a VAT exemption.

Common exemptions:

• Basic healthcare, such as doctor visits or medications.
• Education, such as schools and books.
• Financial services like loans.
• Residential building rent.
• Some exports.

How to get exempt? Apply with registration. FTA gives a certificate. No TRN needed then.

Warning: Exempt firms can’t claim input VAT back. A growing shop might pick voluntary instead.

What Happens After Submission?

You submit the form. What next? 

FTA reviews in 10-20 working days. Download your acknowledgement PDF right away. It has a tracking number.

Outcomes:

• Approved: Get VAT certificate and TRN by email. Download fast.
• More info needed: FTA emails requests. Send in 5 days.
• Rejected: Rarely, if the docs are good. Fix errors and resubmit for free.

Check the portal daily. Track status under “My Applications.”​

Your New Duties with TRN

TRN in hand? VAT work starts. Follow these or face fines.

Issue the right invoices. Show:

• Your TRN (15 digits).
• VAT rate (5%).
• VAT amount.
• Total with VAT.

File returns on time. Most do quarterly by the 28th of next month. Big firms monthly. Use EmaraTax portal.

Keep records for 5 years. Save invoices, bank slips, and sales logs. FTA audits check all.

Pay net VAT: What you collect minus what you claim. AED 10,000 fine per late return.

Which Supplies Are Zero-Rated Or Exempt From VAT In The UAE?

UAE VAT has three main types of supplies. Standard rate is 5%. Zero-rated means 0% tax, but you claim input VAT back. Exempt means no tax and no claims. 

Zero-rated vs exempt supplies UAE comparison (0% VAT – Claim Inputs)

These are subject to VAT law but at a zero rate. You charge no VAT to customers. But claim back VAT on your costs. Great for exporters and key sectors. FTA lists them under Article 45.​

• Healthcare services: Doctor visits, treatments, drugs, and hospital care by licensed professionals. Includes preventive checkups.
• Education services: Schools, nurseries, and colleges owned or funded by the government. Plus books and goods for them.
• Crude oil and natural gas: All supplies of these basics.​
• Exports: Goods or services sold outside GCC countries.​
• Residential buildings: First sale or long-term rent of homes for people.​
• International transport: Planes, ships for passengers or goods across borders.​
• Investment metals: Gold, silver, and platinum are purchased for investment.​
• Rescue vessels/aircraft: For emergency help by sea or land.​

Example: A Dubai clinic gives checkups. Zero VAT on bills. But claims VAT back on medical tools bought.​

Register for VAT if zero-rated sales top AED 375,000. Same rules as standard.​

Exempt Supplies (No VAT – No Input Claims)

Exempt supplies skip VAT fully. No tax charged or paid. You can’t claim input VAT on costs. Hurts cash flow for some firms.

• Local transport: Buses, taxis, or metro rides inside the UAE.​
• Bare land: Empty plots sold without buildings.​
• Residential buildings: Ongoing rent or sales after the first one.​
• Financial services: Loans, insurance, banking without direct fees or commissions.​

Example: A bank gives loans. No VAT charged. No VAT back on office rent paid.​

Key Differences Table

Zero-rated helps exporters grow. Exempt protects locals but limits refunds. Check your sales mix with Virtuzone. Incorrect class results in fines of up to AED 20,000. Use FTA Cabinet lists for full details. Update for 2026 changes.

Business setup experts in Dubai can help you in the process. They are licensed Business setup consultants in Dubai with over 12+ years of experience in streamlining Business setup in Dubai. 

FAQs

Q1: When must I register for VAT in UAE?

Register mandatory if taxable sales hit AED 375,000 in 12 months or are expected within the next 30 days. Voluntary starts at AED 187,500 to claim input VAT back.

Q2: Can my business skip VAT registration?

Yes, if exempt, such as healthcare or education. Apply with FTA for a certificate. But exempt means no input refunds.​

Q3: What documents do I need for the VAT form?

Trade License, Incorporation Certificate, MoA/AoA, IDs/passports, turnover letter, sample invoices, and bank details. All PDFs under 5MB.​​

Q4: How long does it take to get a VAT TRN?

10-20 working days after submission. Track with acknowledgement PDF.

Q5: What duties come after TRN approval?

Issue VAT invoices with TRN and 5% rate. File quarterly returns by the 28th. Keep records for 5 years. Late means AED 10K fines.​

Conclusion – Register VAT Today

VAT registration opens doors for UAE growth. Follow these steps for a quick TRN. New companies thrive in compliance.

Gather docs. Hit the FTA portal. Or let the Business setup consultants in Dubai handle it.

Strong tax setup builds business success. Start now in 2026.

Contact Business setup experts in Dubai for more help!