The Federal Tax Authority (FTA) has announced that businesses must complete Corporate Tax registration within 90 days from the Date of Incorporation / MOA.
VAT registration in the UAE is a mandatory compliance requirement for businesses that cross the prescribed turnover threshold set by the Federal Tax Authority (FTA). Since VAT was introduced in 2018, businesses must ensure timely and accurate registration to avoid penalties, legal issues, and operational disruptions. Proper preparation before applying for VAT helps prevent common errors such as document rejection, incorrect turnover reporting, or delays in approval. By following a clear, step-by-step checklist, businesses can ensure smooth VAT registration in UAE and stay fully compliant with post-registration obligations.
1. Check Eligibility for VAT Registration
- Under UAE law, a business must register for VAT if its taxable supplies and imports exceed AED 375,000 over the previous 12 months.
- Also, if you expect your taxable supplies/imports in the next 30 days to exceed AED 375,000, you should apply immediately.
- If your taxable turnover (or taxable expenses) is below this level but exceeds AED 187,500, you may opt for voluntary VAT registration. This can benefit startups or businesses that incur VAT-eligible expenses and want to reclaim input VAT.
- When evaluating eligibility, consider both past turnover (last 12 months) and realistic future projections.
2. Collect Essential Documents
Before starting the registration process, prepare all required documentation. According to FTA guidelines, the following are typically needed.
- Trade license (and branch licenses, if applicable)
- Certificate of Incorporation / Memorandum of Association / Articles of Association (if corporate entity)
- Passport copy and Emirates ID of the owner or authorised signatory
- Bank account details, IBAN, and bank letter (for company account name) are optionally required depending on entity type.
- Proof of turnover / financial records, invoices, contracts, sales records, especially past 12 months.
- Supporting documents relevant to business activity, e.g., lease agreement (for office), import/export documents, purchase orders, etc.
3. Create and Set Up EmaraTax (FTA) Account
Registration for VAT in the UAE is done via the online portal of the FTA, the EmaraTax platform.
Steps typically are:
1. Sign up for an EmaraTax account (or log in if you already have one).
2. Activate/verify account (email or login credentials).
3. Create a “Taxable Person Profile” (if not already existing), which identifies your business to FTA for VAT.
4. Complete the VAT Registration Application
Once you’re eligible and documentation is ready, proceed with the registration application on EmaraTax. Here’s what you must do:
- Fill in business information like legal name (as per trade license), license number, business activity, address, and contact details.
- Provide past turnover figures or expected turnover projections (as applicable), and details of imports or taxable supplies/imports.
- Upload supporting documents: trade license, passport/Emirates ID, incorporation docs, financial records, bank details, and any PO/contracts, depending on what FTA asks for.
- Indicate the type of registration: Mandatory (if you crossed AED 375,000 threshold) or Voluntary (if using the voluntary threshold or expenses-based registration).
- Review all information carefully. Accuracy is vital FTA expects correct data and can impose penalties for mistakes or misleading info.
- Submit the application. The registration process via FTA is free of charge.
According to FTA, the application itself may take about 45 minutes if information is ready; approval time may vary depending on completeness and review.
5. Receive TRN & Start Post-Registration Compliance
Once approved, FTA issues your TAX Registration Number (TRN). Then you must take the following steps for compliance.
- Display TRN on all tax invoices, bills, quotations, and official documents issued from your business.
- Begin issuing VAT-compliant invoices with the correct VAT rate (normally 5% for standard-rated goods/services).
- Maintain accurate records of sales, purchases, imports/exports, invoices, receipts, credit notes, debit notes. UAE law requires businesses to keep VAT-related records for a minimum period (often 5 years) for audit purposes.
- File VAT returns on time. For most small to medium businesses, filing frequency is quarterly; for larger or high-turnover businesses, filing may be monthly.
- Reconcile input VAT (on purchases/expenses) and output VAT (on sales) correctly to claim refunds/offsets where eligible.
Conclusion
Preparing your business properly before applying ensures that VAT registration in the UAE is smooth, accurate, and fully compliant with Federal Tax Authority (FTA) regulations. From confirming your eligibility and organizing key documents to completing the EmaraTax application and maintaining post-registration compliance, every step plays a vital role in avoiding penalties and operational delays. With professional VAT registration services in the UAE from Reyson Badger, businesses can benefit from expert support, accurate filings, and long-term compliance confidence, allowing them to focus on growth while trusted specialists handle their VAT obligations.
