UAE VAT registration in 2026: thresholds, deadlines, documents and penalties

Key takeaways

• Mandatory: taxable supplies and imports above AED 375,000 in the past 12 months, or expected to exceed it in the next 30 days.
• Voluntary: from AED 187,500 of taxable supplies, imports or expenses.
• Apply on EmaraTax, the FTA’s online portal; on approval you receive a Tax Registration Number (TRN).
• Late registration penalty: AED 10,000, under Cabinet Decision No. 49 of 2021.
• E-invoicing becomes mandatory in phases from 2027; registered businesses need to plan now.

When must you register for VAT?

You must apply within 30 days of crossing the mandatory threshold: when the value of your taxable supplies and imports over the previous 12 months exceeds AED 375,000, or when you expect it to exceed that amount in the next 30 days. The test is rolling, so check it monthly as you grow.

The FTA is busy and well resourced: it completed 98,000 VAT registration applications and roughly 1.7 million tax registration transactions in 2025, and collected AED 46 billion in VAT and excise tax, according to its 2025 Annual Report.

“The number of transactions completed by the Tax Registration Department increased by more than 20%…”

Federal Tax Authority, 2025 Annual Report release (June 2026)

Should you register voluntarily?

You can register once taxable supplies, imports or expenses exceed AED 187,500. It makes sense when most customers are VAT-registered businesses that can recover the VAT you charge, or when you have significant input VAT to reclaim. It rarely makes sense for small consumer-facing businesses, because your prices effectively rise by 5%.

How do you register on EmaraTax?

1. Create an EmaraTax account and a taxable person profile.
2. Complete the VAT registration form: business details, activities, expected supplies, bank details and customs registration if you import.
3. Upload documents (below).
4. Submit and respond to any FTA clarification requests promptly; unanswered requests delay approval.
5. On approval, you receive your TRN and the effective date of registration. Show the TRN on every tax invoice.

Which documents do you need?

• Trade licence (or licences, if more than one).
• Passport and Emirates ID of the owner(s) and authorised signatory.
• Memorandum or articles of association, or partnership agreement.
• Evidence of turnover: financial statements, sales invoices or a turnover declaration, usually covering the past 12 months.
• Bank account details and, for importers, customs registration numbers.

What does registering late cost?

The penalty for failing to register on time is AED 10,000, reduced from AED 20,000 by Cabinet Decision No. 49 of 2021 with effect from 28 June 2021, as summarised by EY Tax News. On top of that, VAT is due on supplies made since the date you should have registered, with late-payment penalties.

What changes with e-invoicing?

Under Ministerial Decisions No. 243 and 244 of 2025, VAT-registered businesses must issue structured e-invoices through Accredited Service Providers. Businesses with revenue of AED 50 million or more go live from 1 January 2027, and the rest from 1 July 2027, as summarised by Deloitte. See UAE e-invoicing.

VAT and corporate tax are separate

The AED 375,000 figure appears in both regimes, but they measure different things: VAT looks at taxable supplies, corporate tax at taxable income. You may need to register for both. See the corporate tax guide and VAT advisory.