Setting up a business in the UAE offers significant opportunities, but it also involves meeting regulatory requirements. One of the most important obligations for new companies is Value Added Tax (VAT) registration. VAT applies to most goods and services at a standard rate of 5%, and businesses must register with the Federal Tax Authority (FTA) when they meet specific criteria.
This article explains how to register for VAT in UAE for new company, including eligibility thresholds, required documents, the UAE VAT registration process, and what to do after receiving your Tax Registration Number (TRN).
Why VAT Registration Matters
VAT registration ensures legal compliance and supports financial management. It allows businesses to collect and remit VAT, obtain a TRN for invoicing and reporting, and recover input VAT on eligible purchases. Failure to register on time can result in penalties of up to AED 20,000, making timely registration essential.
Is VAT Registration Compulsory in UAE?
VAT registration is mandatory for businesses that meet the VAT registration UAE criteria:
- Mandatory registration applies when taxable supplies and imports exceed AED 375,000 in the past 12 months or are expected to exceed this amount in the next 30 days.
- Voluntary registration is available when taxable supplies, imports, or taxable expenses exceed AED 187,500, even if revenue is below the mandatory threshold.
Non-resident suppliers making taxable supplies in the UAE must register regardless of turnover.
Who Is Eligible for VAT Registration?
Eligibility includes UAE-based companies, partnerships, and sole proprietors meeting turnover criteria, free zone entities making taxable supplies within the UAE, non-resident businesses supplying taxable goods or services, and representative offices where applicable. Eligibility is based on UAE VAT registration requirements, excluding exempt or zero-rated supplies.
What Is a Tax Registration Number (TRN)?
A TRN is a unique 15-digit identifier issued by the FTA. It must appear on all VAT invoices, credit notes, and returns. Customers and suppliers can verify TRNs on the FTA portal. Keep your TRN on file and include it on all VAT documentation.
Documents Required for VAT Registration
Before starting the application, prepare the following:
- Valid trade license
- Certificate of incorporation or registration
- Memorandum/Articles of Association
- Passport and Emirates ID copies of owners or authorized signatories
- Proof of business address (Ejari, tenancy contract, or utility bill)
- Bank account details and IBAN
- Financial records or turnover evidence (invoices, contracts, bank statements)
- Authorization letter if a representative applies
Submitting clear and complete documents helps avoid delays in approval.
Step-by-Step UAE VAT Registration Process
The following steps outline the vat registration for new company in UAE, ensuring compliance with FTA requirements:
1. Check Eligibility
Calculate taxable supplies and imports for the past 12 months and estimate turnover for the next 30 days. Register mandatorily if turnover exceeds AED 375,000; consider voluntary registration if above AED 187,500.
2. Create an EmaraTax Account
Sign up on the FTA portal. Use UAE Pass for faster verification. EmaraTax is the official platform for UAE VAT registration process and filings.
3. Complete the VAT Registration Form
Provide company details, trade license information, estimated turnover, business activity codes, and authorized signatory details. Enter accurate projections—FTA may request evidence.
4. Upload Supporting Documents
Attach all required documents in clear, high-quality scans. Incomplete or unclear uploads cause delays.
5. Submit and Track Application
Submit the form and monitor EmaraTax for updates. Processing typically takes 5–20 business days. Once approved, you’ll receive your TRN and VAT certificate.
6. Post-Registration Compliance
Update accounting systems to apply 5% VAT on taxable sales, capture input VAT, and issue VAT-compliant invoices showing the TRN. File VAT returns monthly or quarterly within 28 days after the tax period ends.
Special Considerations for Startups, Free Zones, and Non-Residents
VAT registration for startups can help recover input VAT on setup costs. Free zone entities should confirm VAT treatment with the FTA and their zone authority. Non-resident suppliers may require a fiscal representative; check FTA guidance before applying.
Common Mistakes to Avoid
Missing the 30-day registration window after exceeding the threshold, submitting incomplete or unclear documents, and failing to update accounting and invoice formats to meet VAT requirements are common errors that lead to delays and penalties.
Conclusion
Understanding how to register for VAT in UAE for new company ensures compliance and allows businesses to reclaim input tax. Follow the EmaraTax process, prepare documents in advance, and update accounting systems to issue TRN-bearing invoices and file timely VAT returns. Early preparation reduces delays and penalties. With proper documentation and understanding of the UAE VAT registration process, businesses can meet FTA criteria efficiently and avoid costly delays.
How SimplySolved Can Help
VAT registration and setup can be complex for new businesses. SimplySolved assists with reviewing VAT registration requirements, preparing EmaraTax applications, checking documents, and advising on VAT accounting setup to ensure compliance and accuracy.
Contact us today to discuss VAT registration for your new company and confirm the correct steps for your business activity and jurisdiction.
