VAT Registration Requirements
In the UAE, Value Added Tax (VAT) registration is mandatory for businesses whose taxable supplies and imports exceed AED 375,000 within a 12-month period. Companies must register within 30 days of reaching this threshold to avoid penalties.
The following entities must register for VAT:
Companies trading and selling goods and services in UAE
Exporters and importers of taxable goods
E-commerce companies and online businesses
Freelancers and consultants operating above the VAT threshold
Voluntary Registration
Businesses with taxable turnover between AED 187,500 and AED 375,000 may opt for voluntaryVAT registration. This is beneficial for companies that:
Anticipate meeting the mandatory threshold in the short term
Need to recover VAT on business purchases
Engage in B2B activities where partners prefer VAT-registered entities
Documents Required for VAT Registration
To register for VAT, businesses must submit the following documents through the FTA e-Services portal:
Business Identification Documents:
Trade License Copy
Certificate of Incorporation (for offshore and free zone businesses)
Articles of Association or Memorandum of Association
Owner and Partner Identification:
Passport copies of owners, partners, and shareholders
Emirates ID copies of all authorized signatories
Copies of residence visa (if applicable)
Financial and Business Information:
Financial records showing taxable turnover
Bank account details
Business address proof (Ejari or tenancy agreement)
Contact information
Corporate Tax Registration Requirements
The UAE introduced Corporate Tax effective from June 1, 2023, applying to the net income or profit of businesses operating in the country. All businesses in the UAE must register for Corporate Tax regardless of their annual taxable income.
Registration Deadlines for Companies
For UAE resident companies incorporated before March 1, 2024, registration deadlines are determined by the month of business license issuance:
License Issuance Month | Registration Deadline |
January - February | May 31, 2024 |
March - April | June 30, 2024 |
May | July 31, 2024 |
June | August 31, 2024 |
July | September 30, 2024 |
August - September | October 31, 2024 |
October - November | November 30, 2024 |
December | December 31, 2024 |
Entities without a commercial license as of March 1, 2024, must register within three months from this date.
Natural Persons (Individual Business Owners)
Natural persons conducting business activities must register for Corporate Tax if their annual turnover exceeds AED 1 million. The registration deadline is March 31, 2025, for those exceeding this threshold in 2024.
Tax Rates
Corporate Tax: 0% on taxable income up to AED 375,000 and 9% on income exceeding this threshold
VAT: Standard rate of 5%
Penalties for Non-Compliance
Failure to register for Corporate Tax by the applicable deadline will result in an administrative penalty of AED 10,000. Similarly, non-compliance with VAT registration requirements can lead to significant penalties.
For both tax types, registration is completed through the Federal Tax Authority's EmaraTax portal, where businesses must provide entity details, identification information, business activities, and supporting documentation.