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What you charge and file
You charge 5% on your taxable supplies, issue tax invoices that show your TRN, and file a VAT return through EmaraTax, usually every quarter. Returns are due within 28 days of the end of each tax period.
What you can claim back
You reclaim the VAT you pay on business purchases, your input tax, and offset it against the VAT you collect. Good record-keeping is what makes those claims stick, so clean bookkeeping matters.
The deadlines and penalties you cannot miss
The Federal Tax Authority takes deadlines seriously, and the fines add up quickly. Here are the ones that catch businesses out, and how we keep you clear of them.
Miss the 30-day window after crossing the mandatory threshold and you face an AED 10,000 penalty, plus you have to account for VAT backdated to the day the obligation arose.
With us: we track your turnover and register you before the deadline.
A late VAT return costs AED 1,000 for the first offence and AED 2,000 if it happens again within two years. If you spot an error over AED 10,000, you must file a voluntary disclosure, which now carries 1% of the tax difference per month until you correct it.
With us: we file every quarter on time and get the numbers right the first time.
Once registered, every tax invoice must show your TRN and meet the FTA format. Invoices that do not can be fined and can have your returns rejected.
With us: we set up compliant invoicing from day one so this never becomes an issue.
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Frequently Asked Questions (FAQs)
The questions UK founders ask us most about choosing where to set up in the UAE. Rules change, so treat these as a guide and confirm your own case before you commit.
What is the VAT registration threshold in the UAE?
Registration is mandatory once your taxable supplies and imports pass AED 375,000 over a rolling 12-month period, or you expect to pass it within 30 days. You can register voluntarily from AED 187,500.
Do I have to register for VAT?
Yes, if your taxable turnover is over AED 375,000, or you expect it to be within the next 30 days. Below that, registration is optional. Non-resident businesses making taxable supplies in the UAE must register regardless of turnover.
Is the threshold based on revenue or taxable supplies?
Taxable supplies, not total revenue. Exempt income, such as certain financial services, does not count towards the threshold, so a business can have high revenue but still sit below the line.
What is voluntary VAT registration?
If your taxable supplies or expenses are between AED 187,500 and AED 375,000, you can choose to register. Businesses do this to reclaim VAT on their setup costs and to look established to larger clients.
How long does VAT registration take?
Usually five to ten business days through the FTA’s EmaraTax portal, once your documents are complete. The FTA can take up to about 20 business days if it needs more information.
What is a TRN?
A Tax Registration Number, the unique number the FTA issues when you register. You must show it on every tax invoice you raise, or the invoice can be rejected and fined.
How often do I file VAT returns?
Most businesses file quarterly through EmaraTax, though large businesses may file monthly. Returns are due within 28 days of the end of each tax period.
What are the penalties for late VAT registration?
Registering late carries an AED 10,000 penalty, and you must account for VAT backdated to when your obligation began. Late returns cost AED 1,000, rising to AED 2,000 for a repeat within two years.
Can I reclaim VAT I have paid?
Yes. Once registered, you reclaim the input VAT on your business purchases and offset it against the VAT you collect. Accurate records are what make those claims hold up.
Is VAT the same as corporate tax?
No. VAT is a 5% tax on sales, filed quarterly. Corporate tax is a separate 9% tax on company profit, filed annually. They share the AED 375,000 figure but are different taxes, and our corporate tax page covers the 9% side.
Do free zone companies pay VAT?
Yes. Free zone companies follow the same VAT thresholds as mainland companies. Designated zones have special rules for the supply of goods, but the registration thresholds are the same.
What documents do I need to register?
Your trade licence, the owner or signatory’s passport and Emirates ID, the Memorandum of Association, proof of turnover and your bank details. We prepare and submit the full pack for you.
Register for VAT the right way
Book a free consultation. We will confirm whether you must register, handle it, and keep your returns filed on time.
