Value Added Tax (VAT) was introduced in the UAE on 1st January 2018 at a standard rate of 5%. Today, VAT compliance is mandatory for most businesses operating in Dubai. Whether you run a mainland company, free zone business, or e-commerce setup, VAT registration ensures legal compliance, avoids penalties, and builds credibility with clients and government authorities.
In this step-by-step VAT registration guide, you’ll learn:
👉 When VAT registration is required
👉 Documents needed for VAT registration
👉 How to apply for VAT online via the FTA portal
👉 Types of VAT registration (Mandatory, Voluntary, Group)
👉 Tips for smooth VAT approval
Who Needs to Register for VAT in Dubai?
VAT registration depends on your taxable turnover (total revenue subject to VAT). Here’s how it works:
| VAT Registration Type | Threshold | Registration Required? |
|---|---|---|
| Mandatory Registration | AED 375,000 | Yes – Compulsory |
| Voluntary Registration | AED 187,500 | Optional |
| Below AED 187,500 | None | Not required |
Example:
If your business earns AED 400,000 in taxable supplies, you must register for VAT under mandatory registration.
Types of VAT Registration in UAE
1️⃣ Mandatory Registration – Required when your taxable supplies exceed AED 375,000.
2️⃣ Voluntary Registration – If your turnover is between AED 187,500 and AED 375,000, you can apply voluntarily.
3️⃣ VAT Group Registration – For companies with multiple licenses under common ownership. Helps simplify VAT reporting.
Documents Required for VAT Registration in Dubai
Before starting the registration, prepare the following documents:
- Trade license copy (valid)
- Company’s Memorandum of Association (MOA)
- Passport and Emirates ID of owners/partners
- Company contact details (email, address, phone number)
- Bank account details (IBAN letter)
- Financial statements (sales invoices, expense records)
- Expected turnover for next 30 days
- Customs registration documents (if applicable)
💡 Tip: Make electronic copies (PDF/JPEG) as they need to be uploaded to the portal.
Step-by-Step VAT Registration Process in Dubai
Step 1: Create an e-Services Account on the FTA Portal
- Visit the Federal Tax Authority (FTA) website: www.tax.gov.ae
- Click on “Sign Up”
- Enter email, password, and security question
- Activate your account using the email verification link
Step 2: Start the VAT Registration Application
- Login using your credentials
- Click on VAT Registration under the e-Services dashboard
- Begin filling personal and business information
Step 3: Fill Business Information
Provide the following details:
- Company legal name (English & Arabic)
- Trade license number and issue/expiry dates
- Business activities (e-commerce, trading, consultancy, etc.)
- Business establishment type (LLC, Free Zone, Sole Proprietorship)
Step 4: Provide Banking Details
Enter:
- Bank name
- IBAN number
- Account title
- Proof of bank account (Official bank letter)
Step 5: Financial Turnover Declaration
You must declare:
- Turnover for the last 12 months
- Expected turnover for the next 30 days
- VAT liability and expenses forecast
Ensure these match your financial records to avoid rejections.
Step 6: Upload Supporting Documents
Scan and upload:
- Trade license
- Passport & Emirates ID
- Financial records
- Bank letter (IBAN certificate)
- Customs code certificate (if applicable)
Step 7: Review and Submit
- Verify all details
- Confirm declaration
- Submit for approval
The FTA typically takes 5–20 working days to process VAT applications.
What Happens After Submission?
Once approved, you will receive a TRN (Tax Registration Number) and a VAT Certificate.
📄 The VAT certificate includes:
✔ TRN (Tax ID)
✔ VAT registration date
✔ Company legal name
✔ VAT return filing period (Quarterly or Monthly)
You can now legally charge 5% VAT on taxable supplies and submit VAT returns.
How to Check VAT Registration Status in UAE
- Go to FTA’s homepage
- Click on Verify TRN
- Enter received TRN number
- Confirm business details
If details appear correctly, your VAT registration is active.
Common VAT Registration Mistakes to Avoid
🚫 Entering incorrect business activity
🚫 Submitting false turnover projections
🚫 Missing financial records
🚫 Using wrong IBAN format
🚫 Late application exceeding threshold
These may lead to penalties or rejection.
Deadlines and Penalties
| Violation | Penalty |
|---|---|
| Late VAT registration | AED 10,000 |
| Failure to submit VAT returns on time | AED 1,000 (first time), AED 2,000 (repeated) |
| Incorrect tax records | AED 5,000–AED 15,000 |
Benefits of VAT Registration
✔ Legal compliance with UAE tax laws
✔ Improved business credibility
✔ Ability to claim VAT refunds
✔ Better corporate governance
✔ Required for government or B2B contracts
Should You Hire a VAT Consultant in Dubai?
While the FTA process is straightforward, many businesses prefer professional help to avoid mistakes. A VAT specialist can help with:
🔹 Correct VAT category selection
🔹 Document preparation
🔹 VAT grouping for multiple entities
🔹 VAT return filing and accounting support
🔹 Avoiding compliance penalties
Last Words
VAT registration in Dubai is essential for businesses to operate legally and maintain compliance. With proper documentation, accurate turnover declaration, and step-by-step completion on the FTA portal, you can easily obtain your TRN and VAT certificate.
