Skip to content
VAT registration and compliance services in Dubai
VAT Registration

VAT Registration in Dubai

UAE VAT registration, filing, and compliance services for businesses operating in Dubai.

Request a consultation

Value Added Tax (VAT) was introduced across the UAE on 1 January 2018 at a standard rate of 5%, administered by the Federal Tax Authority (FTA). The UAE VAT system is modelled on international best practice and applies to the supply of most goods and services, with defined categories of zero-rated and exempt supplies. For businesses operating in Dubai and across the UAE, VAT registration is not simply a compliance formality — it affects your pricing strategy, invoicing requirements, supplier relationships, cash flow management, and ultimately your profitability. Businesses that fail to register when required, or that manage their VAT compliance poorly, face significant FTA penalties. Our VAT registration and compliance services cover the complete lifecycle: from assessing your registration obligation and completing the application, through to ongoing return filing, record-keeping, and FTA advisory. For the related area of UAE corporate tax, see our corporate tax services page. For bookkeeping and financial reporting to support VAT compliance, see our accounting services.

VAT Registration and Compliance Process

1

Threshold and Obligation Assessment

We review your revenue history and projected income to determine whether mandatory registration (AED 375,000 threshold) applies, whether voluntary registration (AED 187,500 threshold) would be beneficial, and the optimal timing and type of registration for your business.

2

Registration Application Preparation

We prepare your complete VAT registration application on the FTA's EmaraTax portal, including all required documentation, business activity descriptions, revenue projections, and banking details.

3

TRN Issuance and Invoice Setup

Your Tax Registration Number (TRN) is issued by the FTA upon approval — typically within 5–20 business days. We assist you in updating your invoices, contracts, and systems to include your TRN and comply with UAE VAT invoice requirements.

4

Accounting Setup for VAT

We configure your accounting system to correctly classify supplies, track input and output VAT, and produce the data required for accurate return filing. This includes setting up tax codes for standard-rated, zero-rated, exempt, and reverse charge transactions.

5

Quarterly VAT Return Filing

Each return period, we prepare your VAT return from your accounting records, reconcile it to your VAT ledger, review for accuracy and compliance, and file on the FTA portal by the deadline (28 days after the end of the return period).

6

Ongoing Advisory and FTA Liaison

We provide ongoing VAT advisory for non-routine transactions — new supply types, cross-border scenarios, corporate restructuring. If the FTA issues a query or audit notification, we manage the response process on your behalf.

Documents Required for VAT Registration

  • Valid UAE trade licence (copy)
  • Passport copy and Emirates ID of the authorised signatory
  • Memorandum of Association or equivalent incorporation documents
  • Corporate bank account details (IBAN and bank letter)
  • Revenue records and financial statements for the preceding 12 months
  • Details of all business activities and a description of goods/services supplied
  • Details of the company's customers and suppliers (approximate split domestic/international)
  • For tax group applications: evidence of common ownership or control between entities

Indicative VAT Service Costs

All figures are indicative estimates based on general market conditions and may vary depending on jurisdiction, business activity, service provider, and specific requirements. Contact us for a personalised quote.
Item Cost
VAT registration application (one-off) from AED 1,500
Quarterly VAT return preparation and filing typically AED 800–2,500 per quarter
Monthly VAT return preparation and filing typically AED 800–2,000 per month
VAT health check / compliance review typically AED 2,500–6,000
Voluntary disclosure preparation from AED 2,000 depending on complexity
FTA audit support and liaison from AED 5,000 depending on scope

Frequently asked questions

When must I register for VAT in the UAE?
VAT registration is mandatory if your taxable supplies and imports exceeded AED 375,000 in the last 12 months or are expected to exceed this within the next 30 days. You must apply for registration within 30 days of reaching or anticipating this threshold. Failure to register on time attracts an FTA penalty of AED 20,000.

What is the UAE VAT rate?
The standard VAT rate in the UAE is 5%. Certain supplies are zero-rated (exports of goods, international transport, specific healthcare and education, investment gold and precious metals) and others are exempt (bare land, local passenger transport, most financial services). Zero-rated suppliers can still recover input VAT; exempt suppliers cannot.

Do free zone companies need to register for VAT?
Free zone companies that make taxable supplies to customers in the UAE above the mandatory threshold must register for VAT. Designated Zone status provides specific relief for movements of goods between Designated Zones, but does not exempt a business from VAT obligations on its supplies of services or goods to customers outside the Designated Zone.

What are the penalties for late VAT filing?
The FTA imposes a penalty of AED 1,000 for a first late filing, rising to AED 2,000 for each subsequent late filing within 24 months. Additional penalties apply for late payment of VAT due. Errors resulting in understated VAT are penalised at 50% of the underpaid amount for a first occurrence. We manage filing deadlines proactively to prevent these penalties.

Can I recover VAT paid on business expenses?
Yes. VAT-registered businesses can recover input VAT paid on goods and services purchased for the purpose of making taxable supplies, subject to the input tax being evidenced by a valid tax invoice. Input VAT on certain items is specifically blocked — entertainment, personal motor vehicle costs, and goods/services for personal use are not recoverable.

What is a tax group and when is it beneficial?
A VAT tax group allows two or more related UAE-resident companies under common ownership or control to register as a single VAT entity. The main benefit is that supplies made between group members are disregarded for VAT purposes, simplifying intra-group invoicing and cash flow. Tax groups are particularly valuable for corporate groups with multiple UAE entities regularly transacting with each other.

How does VAT relate to corporate tax?
VAT and corporate tax are separate obligations, both administered by the FTA. VAT applies to the value of taxable supplies made by your business; corporate tax applies to your business profits. However, clean VAT records — with properly classified transactions and filed returns — also support accurate corporate tax return preparation. Our accounting team coordinates both compliance obligations to maximise efficiency.

What records must I keep for VAT, and for how long?
The FTA requires businesses to retain all tax invoices (issued and received), credit notes, debit notes, import and export records, bank statements, accounting records, and any other documents relevant to calculating VAT obligations. All VAT records must be retained for a minimum of 5 years. For real estate businesses, records relating to property transactions must be kept for 15 years.

What is the penalty for late VAT registration in the UAE?
The FTA imposes a penalty of AED 10,000 for the first failure to register for VAT when mandatory, and AED 20,000 for repeat failures. Additionally, late-registered businesses remain liable for VAT on all taxable supplies made from the date they should have registered — meaning they may owe back VAT on sales made before registration was completed, potentially creating a significant retrospective liability.

What is the 15-digit Tax Registration Number (TRN)?
The TRN is a unique 15-digit identifier issued by the FTA upon VAT registration. It must appear on all tax invoices, credit notes, and debit notes your business issues. Customers can verify your TRN on the FTA's EmaraTax portal. Your supplier's TRN must also appear on any invoice from which you intend to claim input VAT. Failure to display the TRN on tax invoices attracts a penalty of AED 5,000 per instance.

What is exempt from VAT in the UAE?
Exempt supplies in the UAE include: bare land (undeveloped land), local passenger transport, most financial services where consideration is an implicit margin (interest, insurance premiums in most cases), and the first supply of residential property within 3 years of its completion. Businesses making exempt supplies cannot recover input VAT on costs attributable to those supplies. This is different from zero-rated supplies (such as exports) where input VAT is fully recoverable.

How long must I keep VAT records in the UAE?
All VAT records must be retained for a minimum of 5 years from the end of the tax period to which they relate. For real estate-related records, the retention period is 15 years. Required records include tax invoices issued and received, credit notes, import/export documents, accounting records, bank statements, contracts, and all correspondence with the FTA. Electronic records are acceptable provided they are accessible and unalterable.
The information on this website is for general guidance only and does not constitute professional advice. Regulations in the UAE may change. Please contact us or consult a licensed professional for specific advice tailored to your situation.