VAT Registration in UAE

Under Federal Decree-Law No. (8) of 2017, Value Added Tax (VAT) was introduced in the UAE on 1 January 2018.

VAT is applied at a standard rate of 5% on most goods and services. Compared to many other countries, this rate is considered relatively low.

 

Who Must Register for VAT?

 

VAT registration depends on your annual turnover:

  • Mandatory Registration:
    Businesses with annual taxable supplies exceeding AED 375,000 must register for VAT.

  • Voluntary Registration:
    Businesses with annual taxable supplies exceeding AED 187,500 may choose to register voluntarily.

 

Registration is completed through the Federal Tax Authority (FTA) online portal.
Once approved, the company receives a Tax Registration Number (TRN), which is required for filing VAT returns and claiming VAT refunds.

Why Proper VAT Registration Matters

 

 

  • Maintain accurate financial records


 

 

  • File VAT returns on time.


 

 

  • Pay VAT liabilities to the FTA