Overview
Value Added Tax (VAT) has applied in the UAE since 1 January 2018 at a standard rate of 5%, under Federal Decree-Law No. 8 of 2017. Registration is made with the Federal Tax Authority (FTA) through EmaraTax.
Authority
Federal Tax Authority (FTA).
Who can apply
| Situation | Registration |
|---|---|
| Taxable supplies and imports above AED 375,000 in the last 12 months, or expected in the next 30 days | Mandatory |
| Supplies or expenses above AED 187,500 | Voluntary |
| Below AED 187,500 | Not possible |
You must apply within 30 days of passing the mandatory threshold.
Required documents
- Trade licence
- Passport and Emirates ID of the owner or manager
- Memorandum or articles of association
- Proof of turnover for the last 12 months (for example sales invoices or a turnover declaration)
- Company bank account details
Fees
Registering for VAT is free. A late registration is penalised; check the FTA's current penalty table.
Steps
- Sign in to EmaraTax and choose VAT registration.
- Enter the business details, activities, turnover and bank account.
- Upload the documents and submit.
- Receive your Tax Registration Number (TRN), then charge VAT and show your TRN on tax invoices.
Processing time
The FTA aims to process a complete application within about 20 working days.