Do I need to register for VAT in the UAE? (2026)
You must register for VAT in the UAE once your taxable turnover exceeds AED 375,000 in the last 12 months, or you expect to exceed it within the next 30 days. Below AED 187,500 you cannot register, and between the two you may register voluntarily.
The mandatory threshold: AED 375,000
Registration is compulsory when your taxable turnover over the past 12 months passes AED 375,000, or when you reasonably expect to pass it in the next 30 days. This applies to companies and freelancers alike.
Voluntary registration: from AED 187,500
If your turnover or taxable expenses are above AED 187,500 but below the mandatory threshold, you can register voluntarily. This is often worthwhile if you want to reclaim input VAT on your costs.
How long do I have to register?
Once you cross the mandatory threshold, you have 30 days to apply for VAT registration via the FTA's EmaraTax portal. Registering late can lead to penalties.
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Try free for 1 monthWhat happens after you register
- You charge 5% VAT on taxable sales
- You show your TRN and the VAT amount on invoices
- You file a VAT201 return each period, usually quarterly
- You keep VAT records for the legally required period
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Frequently asked questions
What is the VAT registration threshold in the UAE?
AED 375,000 in taxable turnover over 12 months for mandatory registration, with voluntary registration possible from AED 187,500.
What happens if I register for VAT late?
Late registration can trigger FTA penalties. You have 30 days from crossing the threshold to register.
Do small businesses have to charge VAT in Dubai?
Only if they are VAT-registered. Below the threshold you are not required to register or charge VAT, though you may choose to voluntarily.
Note: This article is for general information only and does not replace individual tax advice.
