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VAT registration in the UAE is free, and you can do it yourself on EmaraTax, the Federal Tax Authority (FTA) portal. You must register once your taxable supplies and imports pass AED 375,000 in the last 12 months, or will pass it in the next 30 days. You may register by choice from AED 187,500. The standard VAT rate is 5%. These rules are the same for free zone and mainland companies.
UAEFreeZoneDirectory.com is not the FTA and cannot issue a tax registration number. We are an independent free zone directory. If you would rather not file yourself, we pass your request to a licensed tax partner.
When must a UAE business register for VAT?
| Situation | Rule | What to do |
|---|---|---|
| Taxable supplies and imports over AED 375,000 in the last 12 months | Mandatory registration | Apply within 30 days |
| Expected to pass AED 375,000 in the next 30 days | Mandatory registration | Apply within 30 days |
| Supplies, imports or taxable expenses over AED 187,500 | Voluntary registration allowed | Apply when it suits you |
| Below AED 187,500 | Cannot register | Track turnover monthly |
Source: FTA VAT registration topic page and VAT registration service page, checked .
The 30 day clock starts on the day you cross the threshold, not on the day you notice. Count the 12 months on a rolling basis. A trading company that has one large order in its third month can be over the line long before its first anniversary.
Voluntary registration makes sense when most of your customers are VAT registered businesses and you pay VAT on your own costs, because registration lets you recover input VAT. It also adds a return to file every period, so weigh that against what you would recover.
Is VAT registration different in Dubai, Abu Dhabi and the free zones?
VAT is federal. Searches for "abu dhabi vat registration" or "vat registration dubai" lead to the same place: one FTA, one EmaraTax account, one threshold. Your emirate and your free zone do not change the application.
Where you are licensed matters for one thing only: designated zones. The FTA treats a designated zone as outside the UAE for VAT on goods, if the zone meets the conditions (a fenced area, customs controls and set procedures for goods). Services supplied inside a designated zone are taxed like services in the rest of the country. Free zones that are not designated count as inside the UAE for VAT. Most consultancy, media and tech companies in free zones charge 5% on local sales like everyone else. Ask your free zone whether it is designated before you plan around it.
How much does VAT registration cost in the UAE?
| Route | Cost | Notes |
|---|---|---|
| Apply yourself on EmaraTax | Free | You prepare and upload everything |
| RAKEZ service for its companies | AED 1,249 | 15 to 20 working days |
| Meydan Free Zone service | AED 1,500 | One time fee |
| SPC Free Zone service | AED 1,500 or AED 3,000 | 28 or 14 business days |
Source: FTA service page, RAKEZ, Meydan Free Zone and SPC Free Zone service pages, checked .
Private tax agencies publish VAT registration fees of about AED 199 to AED 2,500 (published prices of 3 setup agencies, checked ). The AED 199 figure is a promotion. At the top of the range, the fee covers a document review, filing on EmaraTax and answering FTA questions until the TRN is issued. These are professional fees only. None of them is a government charge, because there is no government charge.
What documents do you need for VAT registration in the UAE?
The FTA service page lists what it needs, and the list can change, so check it on the day you apply. Most applications rest on these:
- Trade licence, valid and in the company name
- Passport and Emirates ID (or visa page) of each owner and the manager
- Memorandum or articles of association
- Company contact and bank details
- Proof of turnover: sales invoices, contracts, or a 12 month forecast if you register on expected sales
Turnover figures that do not match your invoices are the usual reason an application comes back with questions.
How do you register for VAT in the UAE?
- Create an EmaraTax account on the FTA website with your email and phone number.
- Add the company as a taxable person using your trade licence details.
- Choose VAT registration and say whether it is mandatory or voluntary.
- Enter turnover, expected imports and exports, and your bank details.
- Upload the documents and submit. There is no payment step.
- Answer any FTA query inside the deadline it gives you.
- Download your VAT certificate and TRN once the application is approved, about 20 business days after a complete file.
What mistakes delay VAT registration?
- Waiting for the licence anniversary to check turnover. The test is any rolling 12 months.
- Registering on a forecast you cannot support with contracts or invoices.
- Assuming a free zone address means no VAT on services.
- Forgetting that registration brings VAT returns. Check your filing periods in EmaraTax as soon as the TRN arrives.
The late registration penalty is not settled in the sources we checked. The FTA page says a penalty applies without a figure, and the penalty rules were amended recently. Ask the FTA or a tax agent for the current amount, and register inside the 30 days so it does not matter.
If you want it done for you
Use the form on this page. Tell us your free zone, your activity and your turnover in the last 12 months. We send it to a licensed tax partner who checks whether you must register, then quotes one fee before starting. If you already handle corporate tax registration yourself, VAT uses the same EmaraTax login. Your bookkeeping is what makes the turnover figures easy to prove.
For the other running costs of a free zone company, see free zone hidden costs and the free zone licence renewal guide.
Sources
- https://tax.gov.ae/en/taxes/vat/vat.topics/registration.for.vat.aspx (mandatory and voluntary thresholds)
- https://tax.gov.ae/en/services/vat.registration.aspx (free registration, 30 day deadline, processing time)
- https://u.ae/en/information-and-services/finance-and-investment/taxation/vat/valueaddedtaxvat (5% rate)
- https://tax.gov.ae/DataFolder/Files/Pdf/Designated-Zones-VAT-Guide.pdf (designated zones)
- https://rakez.com/en/service-cards/vas-services/vat-registration, https://www.meydanfz.ae/meydan-plus/vat-registration and https://www.spcfz.ae/vat-registration-in-the-uae/ (free zone service fees)
- https://thevatconsultant.com/product-pricing, https://www.hfaconsulting.ae/vat-consultants-dubai/vat-registration-uae-fees/ and https://www.uniwide.com/company-formation-in-uae-dubai/cost-of-services/ (agency fees)
