Do you need to register?
- Mandatory: your taxable supplies and imports were above AED 375,000 in the last 12 months, or you expect them to be in the next 30 days
- Voluntary: your taxable supplies, imports or taxable expenses are above AED 187,500
You must apply within 30 days of passing the mandatory threshold. Registration is done on the FTA's EmaraTax portal, and you receive a Tax Registration Number (TRN) once it is approved.
How VAT works day to day
The standard rate is 5%. Some supplies are zero-rated, such as most exports, and some are exempt, such as certain financial services and residential rent. You charge VAT on your sales, reclaim the VAT on your business costs, and pay the difference to the FTA.
Every tax invoice must include the mandatory details, including your TRN. You can only reclaim VAT when you hold a valid tax invoice, and some costs, such as certain entertainment and employee-use cars, are blocked.
Returns and payment
Most businesses file quarterly; some are assigned monthly periods. The return and any VAT due must be submitted within 28 days after the end of each tax period. Late filing, late payment and incorrect returns all carry administrative penalties.
Records to keep
Keep your invoices, credit notes, import documents and accounting records for at least 5 years, or longer for real estate. The FTA can ask for them during an audit.
Quick checklist
- Check your turnover against the threshold every month
- Apply within 30 days once you pass AED 375,000
- Make sure every invoice shows the mandatory details
- File and pay within 28 days of each period end
- Review past returns and correct errors with a voluntary disclosure
This guide is general information based on UAE rules as of November 2026. It is not tax advice for your situation, so contact us to confirm your own position.
More guides: UAE Corporate Tax: a plain-English guide for SMEs (2026) · UAE e-invoicing: what to do before 2027 · UAE tax calendar