The Federal Tax Authority (FTA) has announced that businesses must complete Corporate Tax registration within 90 days from the Date of Incorporation / MOA.
The Federal Tax Authority (FTA) has clarified an important point regarding VAT registration in the UAE VAT registration is not limited only to companies. Eligible individuals can also apply for VAT registration through the FTA’s VAT registration service.
This clarification confirms that individuals who meet the eligibility criteria under UAE VAT law can submit a VAT registration application and obtain a Tax Registration Number (TRN). The purpose of this service is to enable compliance with VAT in the UAE, rather than to explain every procedural step of the registration process.
For freelancers, sole practitioners, and individuals conducting taxable activities in their own name, this update removes long-standing ambiguity around VAT registration obligations.
What the FTA VAT Registration Service Enables
The FTA VAT registration service is designed to support tax compliance by allowing eligible individuals to formally enter the UAE VAT system.
First, it enables eligible persons to submit an application for VAT registration through the FTA’s digital tax portal. This ensures that individuals conducting taxable activities are properly recorded with the tax authority.
Second, the service facilitates the issuance of a Tax Registration Number (TRN). The TRN is a unique identifier used by the FTA to track VAT obligations, filings, and payments.
Most importantly, the service supports individuals in meeting their VAT obligations under UAE tax law, including VAT reporting, collection (where applicable), and record-keeping requirements.
Who Can Use This VAT Registration Service
The VAT registration service is available to individuals who meet the eligibility criteria defined under UAE VAT regulations.
This includes individuals who carry out taxable economic activities in their own capacity, rather than through a registered company. Examples may include freelancers, consultants, independent professionals, or sole practitioners whose activities fall within the scope of VAT.
Additionally, individuals who are required by law to comply with VAT obligations—such as those exceeding the mandatory or voluntary registration thresholds—can use this service to regularize their tax position.
The clarification makes it clear that VAT obligations apply based on economic activity, not merely on whether a person is incorporated as a company.
Purpose of Obtaining a Tax Registration Number (TRN)
A Tax Registration Number (TRN) serves as the official identification of an individual within the UAE VAT system.
Once issued, the TRN allows the individual to lawfully comply with VAT requirements, including submitting VAT returns, charging VAT where applicable, and maintaining proper tax records.
The TRN is also used for all official VAT-related communications and transactions with the Federal Tax Authority. Without a TRN, an eligible individual may be considered non-compliant, which can lead to administrative penalties.
In essence, obtaining a TRN is the formal step that brings an individual under the regulated VAT framework in the UAE.
Why This Clarification Is Important
This clarification is significant because it confirms that VAT registration in the UAE is not restricted to companies or corporate entities. Individuals conducting taxable activities are equally subject to VAT regulations.
It helps eligible individuals clearly understand their VAT compliance responsibilities, especially those operating independently who may have assumed VAT only applied to businesses.
By addressing this point directly, the FTA reduces confusion around VAT obligations for non-corporate persons, encouraging voluntary compliance and minimizing the risk of penalties due to misunderstanding or oversight.
For tax advisors, freelancers, and individual professionals, this update reinforces the importance of assessing VAT exposure early.
Conclusion
The FTA’s clarification on VAT registration for individuals in the UAE reinforces a key principle of the VAT system: tax obligations are determined by economic activity, not business structure alone.
By enabling eligible individuals to apply for VAT registration and obtain a Tax Registration Number (TRN), the FTA supports broader compliance with VAT in the UAE and ensures transparency within the tax system.
Individuals conducting taxable activities should review their position carefully and take timely action to register where required. Proactive VAT registration not only ensures compliance but also protects individuals from avoidable penalties and regulatory risks, and partnering with Reyson Badger as your service provider can further streamline the registration process with expert guidance and end-to-end compliance support.
