How to Register for VAT in UAE for New Company – Complete 2025 Guide
Starting a business in the United Arab Emirates is an exciting step, but along with company formation comes legal and tax compliance. One of the most important obligations for eligible businesses is VAT registration. Understanding how to register for VAT in UAE for new company owners is essential to avoid penalties, ensure smooth operations, and build trust with customers and authorities.
This detailed guide explains everything you need to know about VAT registration in the UAE, including eligibility, process, timelines, benefits, and compliance requirements. Whether you are setting up in Dubai, Abu Dhabi, or anywhere else in the UAE, this article will help you stay fully compliant.
Understanding VAT in the UAE
Value Added Tax (VAT) was introduced in the UAE on 1 January 2018 at a standard rate of 5%. VAT is an indirect tax charged on the supply of most goods and services and is collected by businesses on behalf of the Federal Tax Authority (FTA).
For a newly formed company, VAT compliance is not optional once certain thresholds are met. Learning how to register for VAT in UAE for new company structures helps ensure your business avoids fines and operates legally from day one.
Who Needs to Register for VAT in the UAE?
VAT registration in the UAE depends primarily on annual taxable turnover.
Mandatory VAT Registration
A business must register for VAT if:
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Annual taxable supplies exceed AED 375,000
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The company expects turnover to exceed the threshold within the next 30 days
Voluntary VAT Registration
A business may choose to register voluntarily if:
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Taxable supplies exceed AED 187,500
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The company wants to reclaim input VAT
Understanding how to register for VAT in UAE for new company entities is especially important for startups expecting rapid growth.
How to Register for VAT in UAE for New Company (Step-by-Step)
Step 1: Create an FTA Account
Visit the Federal Tax Authority portal and create a user account with a valid email and phone number.
Step 2: Prepare Required Documents
You will need:
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Trade license
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Passport and Emirates ID of owners
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MOA or AOA
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Bank account details
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Expected turnover details
Step 3: Submit VAT Application
Complete the VAT registration form online, ensuring accuracy in financial details and business activities.
Step 4: Review and Approval
FTA may request additional documents. Once approved, a Tax Registration Number (TRN) is issued.
This structured approach simplifies how to register for VAT in UAE for new company owners across all emirates.
Register for VAT Online in the UAE
Businesses can register for VAT online through the FTA portal without visiting any government office. This digital process has made compliance faster and more transparent.
The online system allows businesses to:
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Upload documents
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Track application status
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Update VAT details
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File VAT returns
Using professional consultants can further simplify the process to register for VAT online accurately and quickly.
How to Register for VAT in Abu Dhabi
The VAT registration process in Abu Dhabi follows the same federal rules set by the FTA. However, companies operating in Abu Dhabi often require guidance on activity classification and turnover calculation.
Knowing how to register for VAT in Abu Dhabi helps ensure proper documentation and timely approval, especially for mainland and free zone businesses.
How to Register for VAT in Dubai
Dubai-based businesses, including startups, SMEs, and free zone companies, must comply with VAT laws once thresholds are met.
Understanding how to register for VAT in Dubai ensures compliance with FTA regulations while avoiding penalties for late registration.
Register New Company for VAT – When Should You Apply?
You should register new company for VAT when:
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Your turnover reaches the mandatory threshold
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You anticipate crossing the threshold soon
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You want to recover input VAT on expenses
Delaying VAT registration can lead to fines starting from AED 10,000.
De Register for VAT – When Is It Required?
Businesses may apply to de register for VAT if:
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Annual taxable turnover falls below AED 187,500
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Business activities cease permanently
VAT deregistration must be submitted within 20 business days of becoming eligible. Failure to de register for VAT on time can result in penalties.
Re Register for VAT – Is It Possible?
Yes, businesses can re register for VAT if:
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Turnover increases again
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Business operations resume
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Deregistration was done incorrectly
The re register for VAT process follows similar steps as initial registration but requires justification.
Can an Individual Be VAT Registered in UAE?
Many freelancers and sole proprietors ask, can an individual be VAT registered? The answer is yes.
An individual can register for VAT if:
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They hold a valid trade license
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Their taxable supplies exceed the VAT threshold
Understanding can an individual be VAT registered helps consultants, freelancers, and independent professionals stay compliant.
Can I Charge VAT If Not Registered?
A common question among new businesses is, can I charge VAT if not registered?
The answer is no. It is illegal to charge VAT without a valid TRN. Businesses asking can I charge VAT if not registered should immediately apply for VAT registration to avoid penalties and legal consequences.
How Long Does It Take to Register for VAT?
Many entrepreneurs wonder, how long does it take to register for VAT in the UAE?
Typically:
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5 to 10 working days if documents are complete
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Longer if FTA requests additional clarification
Planning ahead ensures how long does it take to register for VAT does not affect invoicing or operations.
How to Check If a Company Is VAT Registered
To verify compliance, you may need to know how to check if a company is VAT registered.
Steps include:
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Visit the FTA TRN verification portal
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Enter the company’s TRN
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Confirm registration status
Knowing how to check if a company is VAT registered helps businesses validate suppliers and partners.
VAT Registered Companies List in UAE
The FTA does not publish a public VAT registered companies list. However, VAT registration can be verified using TRN numbers.
Businesses searching for a VAT registered companies list should rely on official TRN verification instead of unofficial databases.
Benefits of Registering for VAT in UAE
There are several advantages and benefits of registering for VAT, including:
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Legal compliance with UAE law
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Ability to reclaim input VAT
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Increased business credibility
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Eligibility to work with government and large corporations
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Structured financial reporting
Understanding the benefits of registering for VAT helps businesses see VAT as a growth enabler rather than a burden.
Common VAT Registration Mistakes to Avoid
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Late registration
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Incorrect turnover calculations
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Charging VAT without registration
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Failure to file VAT returns
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Not updating FTA details
Professional guidance helps prevent these costly errors.
VAT Compliance After Registration
Once registered, businesses must:
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Issue VAT-compliant tax invoices
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File VAT returns quarterly
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Maintain records for 5 years
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Pay VAT dues on time
Compliance is an ongoing responsibility, not a one-time task.
Why Professional VAT Support Matters
VAT laws can be complex, especially for new businesses. Professional advisors ensure:
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Accurate registration
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Error-free documentation
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Timely filing
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Ongoing compliance
This is why many businesses rely on expert corporate advisors for VAT matters.
Get Expert Helps VAT Support Today
If you are planning how to register for VAT in UAE for new company, or need help with VAT registration, deregistration, or compliance, our experts are here to help.
RAS Corporate Advisor
📞 Phone: +971 4589 6885
📧 Email: info@rca.ae
Our experienced VAT consultants provide end-to-end support, ensuring your business remains compliant and penalty-free across the UAE.
FAQs
Q1. Is VAT registration mandatory for all UAE businesses?
No, VAT registration is mandatory only when turnover exceeds AED 375,000 annually.
Q2. Can free zone companies register for VAT?
Yes, free zone companies must register if they meet VAT thresholds.
Q3. What happens if I don’t register for VAT on time?
Late registration leads to penalties starting from AED 10,000.
Q4. Can startups register for VAT voluntarily?
Yes, startups can voluntarily register if turnover exceeds AED 187,500.
Q5. Do I need a UAE bank account for VAT registration?
Yes, a valid UAE bank account is required for VAT registration.
Further Reading
Business Setup Company in Dubai
Business Setup in Dubai Mainland
Offshore Company Setup in Dubai
