VAT registration in the UAE
VAT is charged at 5% and registration depends on the value of your taxable supplies. This page gives the thresholds, the deadlines and the penalties as the Federal Tax Authority and the Ministry of Finance publish them.
The short answer
VAT registration in the UAE is made with the Federal Tax Authority (FTA). It is mandatory for a business whose taxable supplies and imports exceeded AED 375,000 over the previous 12 months, or are expected to exceed it in the next 30 days. The standard rate is 5%. The application must be submitted within 30 days of becoming required to register, and the FTA charges no fee.
Who has to register for VAT in the UAE?
A business must register when its taxable supplies and imports exceeded AED 375,000 over the previous 12 months, or are expected to exceed that amount in the next 30 days.
The FTA states that the AED 375,000 threshold does not apply to foreign businesses. A non resident business that makes any taxable supplies in the UAE must register.
VAT was introduced in the UAE on 1 January 2018 at a standard rate of 5%. The governing law is Federal Decree-Law No. 8 of 2017 on Value Added Tax and its amendments.
| Type | Threshold | Measured on |
|---|---|---|
| Mandatory | More than AED 375,000 | Taxable supplies and imports over the previous 12 months, or expected in the next 30 days |
| Voluntary | More than AED 187,500 | Taxable supplies and imports, or taxable expenses, over the previous 12 months, or expected in the next 30 days |
| Foreign business | No threshold | Any taxable supplies made in the UAE |
Good to knowThe Ministry of Finance states that a start up with no turnover may register voluntarily if its expenses exceed AED 187,500. Whether to register voluntarily is a decision for you and your tax adviser.
When must you register, and how long does it take?
The application must be submitted within 30 days of becoming required to register.
VAT registration with the FTA is free. The FTA's stated processing time is 20 business days from receipt of a completed application.
The FTA asks for the trade license, Emirates ID and passport copies of the owners, and a declaration of taxable supplies and monthly sales with supporting evidence.
How often do you file a VAT return?
Usually every three months. The FTA normally gives a business quarterly tax periods, and it may set shorter or longer ones. Monthly periods exist.
The return and the payment are due within 28 days from the end of the tax period.
VAT records must be kept for at least 5 years after the end of the tax period, with a longer period for real estate records.
What are the VAT penalties from 14 April 2026?
Late registration carries an administrative penalty of AED 10,000. The penalty table changed on 14 April 2026, when Cabinet Decision No. 129 of 2025 amended Cabinet Decision No. 40 of 2017.
The table gives the current figures.
| Violation | Penalty |
|---|---|
| Late registration application | AED 10,000 |
| Late deregistration application | AED 1,000, then monthly, up to a maximum of AED 10,000 |
| Late tax return | AED 1,000 the first time, AED 2,000 for a repeat within 24 months |
| Late payment | A monthly penalty of 14% per annum on the unpaid tax, from the day after the due date |
| Failure to keep records | AED 10,000 per violation, AED 20,000 for a repeat within 24 months |
Which supplies are zero rated or exempt?
The FTA's guide lists both. Zero rated and exempt are different categories, and the guide sets conditions that are not reproduced here.
| Category | Examples |
|---|---|
| Zero rated | Exports of goods and services, international transport, the first supply of residential buildings within 3 years of completion, certain education and healthcare services |
| Exempt | Certain financial services, residential property that is not zero rated, bare land, local passenger transport |
What changed in UAE VAT law in 2026?
Federal Decree-Law No. 16 of 2025 amended the VAT law from 1 January 2026. No self invoice is needed under the reverse charge mechanism, excess refundable tax must be claimed within five years, and the FTA may deny input tax linked to evasion schemes.
E-invoicing is being introduced. Entities with annual revenue above AED 50 million must fully implement the e-invoicing system by 1 January 2027, and must appoint an Accredited Service Provider by 30 October 2026.
Good to knowWe could not confirm the e-invoicing dates for businesses with revenue below AED 50 million on an official page, so they are not stated here.
Who carries out the VAT registration?
Tax, accounting and audit work is carried out by Links' sister firm, LINKS Tax Consultant (linkstaxs.ae). It prepares the application and tells you the cost in writing before you commit.
This page states what the official sources say. It is not tax advice, and it does not tell you whether to register voluntarily.
Documents you need
- Trade license
- Emirates ID copies of the owners
- Passport copies of the owners
- Declaration of taxable supplies
- Monthly sales with supporting evidence
VAT registration: common questions.
Answered from the official sources listed below. If yours is not here, ask us directly.
Do I have to register for VAT from day one?
Registration is mandatory once taxable supplies and imports exceeded AED 375,000 over the previous 12 months, or are expected to exceed it in the next 30 days. Below that, the Federal Tax Authority allows voluntary registration above AED 187,500.
Is the AED 375,000 VAT threshold based on revenue or profit, and over what period?
It is based on the value of taxable supplies and imports, not profit. The Federal Tax Authority measures it over the previous 12 months, or on what is expected in the next 30 days.
Can I register for VAT voluntarily?
Voluntary registration is available when taxable supplies and imports, or taxable expenses, exceeded AED 187,500 over the previous 12 months or are expected to in the next 30 days. Whether to register is a decision for you and your tax adviser.
How often do I file a VAT return, and what is the deadline?
The Federal Tax Authority usually sets three month tax periods, and may set shorter or longer ones. The return and the payment are due within 28 days from the end of the tax period.
What is the penalty if I register or file late?
From 14 April 2026, late registration carries a penalty of AED 10,000. A late return is AED 1,000 the first time and AED 2,000 for a repeat within 24 months. Late payment carries a monthly penalty of 14% per annum on the unpaid tax.
What is e-invoicing and when does it apply?
The Ministry of Finance states that entities with annual revenue above AED 50 million must fully implement the e-invoicing system by 1 January 2027, and appoint an Accredited Service Provider by 30 October 2026. We could not confirm the dates for smaller businesses on an official page.
How long do I need to keep VAT invoices and records?
VAT records must be kept for at least 5 years after the end of the tax period. The Federal Tax Authority sets a longer period for real estate records.
Where these facts come from
Every fact on this page was checked against the official source on 29 September 2026. Rules and fees change, so we confirm the current position before any application.
- Ministry of Finance, VAT (opens in a new tab)
- Federal Tax Authority, registration for VAT (opens in a new tab)
- Federal Tax Authority, VAT registration service (opens in a new tab)
- Federal Tax Authority, filing VAT returns and making payments (opens in a new tab)
- Federal Tax Authority, Get to know your Tax Obligations (opens in a new tab)
- Ministry of Finance, Cabinet Decision No. 40 of 2017 and its amendments (opens in a new tab)
- Ministry of Finance, VAT law amendments from January 2026 (opens in a new tab)
- Ministry of Finance, amendments to e-invoicing system decisions (opens in a new tab)
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