What is VAT Registration in UAE?

VAT registration is the process through which a business obtains a Tax Registration Number (TRN) from the Federal Tax Authority (FTA). Once registered, the business is legally allowed to:

• Charge VAT on taxable supplies
• Claim input VAT on purchases
• File VAT returns
• Comply with UAE VAT law

Who Needs to Register for VAT in UAE?

There are three categories:

Mandatory Registration

If your taxable turnover exceeds AED 375,000 in the past 12 months or will exceed it in the next 30 days.

Voluntary Registration

If turnover (or taxable expenses) exceeds AED 187,500, you can choose to register.

Not Eligible

If both taxable turnover and expenses are below AED 187,500.

Note: Freelancers, influencers, e-commerce sellers, consultants, and professionals must register if they meet the threshold.

What Documents Are Required for VAT Registration?

Document	Description
Trade License	Valid UAE license (Mainland or Free Zone)
Emirates ID & Passport	Of all owners/directors
MOA or AOA	Company formation documents
Bank Letter	IBAN confirmation with company name
Address Proof	Tenancy contract / utility bill
Financials	Sales invoices, purchase records
Customs Code (if applicable)	Required for import/export companies
Income Statement	Last 12-month revenue figures

How to Register for VAT on FTA Portal (2025)

Step 1: Create an FTA Account

• Visit: https://eservices.tax.gov.ae
• Sign up with your email and phone number

Step 2: Start VAT Registration

• Go to “Dashboard” → “Register for VAT”
• Fill in 8 sections:
  • About the applicant
  • Contact details
  • Banking details
  • Business relationships
  • VAT registration details
  • Declaration
  • Review
  • Submit

Step 3: Await TRN Issuance

• The FTA reviews your application within 20 working days
• If successful, you’ll receive your TRN via email and dashboard

VAT Groups – Can You Register Multiple Entities Together?

Yes. A VAT Group is allowed if:

• Businesses are legally related (parent-subsidiary)
• All entities are UAE-resident and VAT-eligible

Benefits:

• One return for all
• Offsetting VAT within group
• Simplified compliance

VAT Registration Mistakes to Avoid

• Applying without meeting turnover thresholds
• Incorrect legal structure or trade license
• Not submitting financial records
• Choosing the wrong effective date
• Failing to monitor email for FTA updates

Timeline & TRN Status Tracking

Once submitted, you can track your application on the dashboard. You’ll see:

• Draft
• Pending
• Under Review
• Approved (TRN issued)

FTA may request clarifications or additional documents, so monitor your email closely.

What If You Don’t Register on Time?

Penalties:

• Late VAT registration: AED 10,000
• Backdated VAT liability with fines
• Ineligibility to claim past input VAT

Can You Cancel or Deregister?

Yes, if:

• You stop taxable activity
• Revenue remains below AED 187,500 for 12+ months

You must apply for VAT deregistration on the FTA portal.

Most Searched Questions (2025)

Q: Is VAT registration mandatory for freelancers in UAE?
A: Yes, if revenue exceeds AED 375,000/year.

Q: How long does it take to get TRN?
A: Typically 7 to 20 working days, depending on document completeness.

Q: Can I charge VAT before getting a TRN?
A: No. Charging VAT without a TRN is illegal and penalized.

Q: Can a foreign company register for VAT in UAE?
A: Yes, if it has a place of business or taxable supply in UAE.

VAT registration is a crucial compliance step for any UAE-based business. Delays or errors can result in penalties, missed tax credits, and loss of credibility. To ensure smooth registration:

• Understand your threshold
• Keep all documents ready
• Consult a registered tax agent

Need Support with Compliance?

At Think Biz Management Consultancies, we help you:

• Register for VAT and obtain your TRN
• File monthly or quarterly VAT returns accurately
• Maintain proper VAT records and invoices
• Avoid penalties with expert guidance
• Respond to FTA audits and clarification requests

Contact us today for a free consultation.
Let our experts take care of your VAT compliance while you focus on growing your business.

 

Contact us today for a free consultation.

Contact number: ‪+971 50 983 0334‬

Email ID: info@alphabets.ae