Thinking about starting or growing a business in the UAE? Then you’ve probably heard about FTA VAT registration, and it’s something you can’t afford to ignore.
Whether you’re new to the process or unsure if it even applies to you, this guide will walk you through everything step by step.
We’ll cover who needs to register, how to do it, what documents are required, and what happens if you don’t.
Understanding VAT might seem overwhelming, but it doesn’t have to be. Read on to make sure your business is on the right track.
What Is FTA VAT Registration?
VAT stands for Value Added Tax. It’s a 5% tax added to goods and services at different stages of production or sale. In the UAE, VAT was introduced in 2018 and is managed by the Federal Tax Authority (FTA).
FTA VAT registration means registering your business with the FTA so you’re allowed to collect VAT and submit tax returns. Once registered, you’ll receive a Tax Registration Number (TRN) that must be included on all VAT invoices and filings.
Do You Need to Register for VAT in the UAE?
If you’re unsure whether VAT applies to your business, you’re not alone. Many business owners miss the threshold without realizing they should’ve registered already.
Mandatory vs Voluntary Registration
Not all businesses are required to register, but some may still benefit from it.
- ✔️ Mandatory Registration: You must register if your total taxable supplies and imports exceeded AED 375,000 in the last 12 months or are expected to exceed it in the next 30 days.
- ✔️ Voluntary Registration: You can register voluntarily if your taxable supplies, imports, or taxable expenses exceeded AED 187,500 in the same period.
- ✔️ Exempt Businesses: If your revenue is under AED 187,500 and doesn’t meet voluntary criteria, registration is not required.
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Step-by-Step: How to Complete FTA VAT Registration
Getting registered for VAT isn’t as hard as it sounds. You just need to go through a few online steps and submit the right paperwork.
✅ Step 1: Sign Up on the FTA Portal
Visit the FTA e-Services portal. Create your account using a valid email and mobile number. After verifying your account, log in to access the VAT registration form.
✅ Step 2: Gather Your Documents
Here’s what you’ll need to upload:
- ✔️ Valid trade/business license
- ✔️ Passport and Emirates ID of the owner or manager
- ✔️ Bank account details
- ✔️ Proof of income or taxable turnover (invoices, contracts, etc.)
- ✔️ Business activity details
- ✔️ Contact information
✅ Step 3: Fill Out the VAT Application
The application will ask questions about your business structure, expected revenue, taxable activities, and business locations. Double-check your details before submission to avoid delays.
✅ Step 4: Submit and Wait
Submit your form through the portal. Once reviewed and approved, the FTA will issue your TRN, usually within 5 to 15 business days. Delays can happen if the application is incomplete or unclear.
What Documents Do You Need for VAT Registration?
Having your documents ready ensures the registration process goes smoothly. Incomplete files are a common reason applications are returned.
Here’s your simple checklist:
- ✔️ Trade license
- ✔️ Emirates ID and passport copy
- ✔️ Proof of business activity (contracts, invoices)
- ✔️ Turnover documentation (bank statements or financial records)
- ✔️ Business location and contact info
- ✔️ IBAN or bank letter for account verification
How Long Does VAT Registration Take?
VAT registration is generally fast if your documents are complete. Most applications are processed within 5 to 15 working days, though it can take up to 20 days in some cases.
However, delays may happen if documents are missing, unclear, or not translated properly. (English or Arabic are accepted.) Always follow the FTA’s guidelines for faster processing.
What to Do After Getting Your TRN
Once you have your Tax Registration Number (TRN), your business is officially VAT-registered. But you still have a few tasks to handle.
Start Charging VAT
You must begin charging 5% VAT on all applicable goods and services. Include your TRN on invoices and ensure your invoice format follows FTA rules.
File VAT Returns
VAT-registered businesses must file returns quarterly, even if there’s no activity. Returns are submitted through the FTA portal, showing VAT collected and VAT paid.
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Keep Good Records
Maintain invoices, receipts, and tax records for at least 5 years. The FTA may request these records during audits or reviews.
What If You Don’t Register on Time?
Delaying VAT registration can lead to serious penalties. The FTA tracks business turnover and can enforce compliance if you’re late.
If you don’t register within 30 days of crossing the AED 375,000 threshold, the FTA may impose a penalty of AED 10,000. Other penalties include:
- ✔️ Late VAT filing: AED 1,000 (first offense), AED 2,000 (repeat within 24 months)
- ✔️ Late VAT payment: 2% of unpaid tax immediately, plus 4% per month until paid
- ✔️ Incorrect VAT return: AED 1,000 (first time), AED 2,000 (repeat)
- ✔️ Failure to keep records: AED 10,000 (first offense), AED 20,000 (repeat)
⚠️ Note: As of now, the FTA does not offer penalty waivers for VAT. Penalty waivers apply only to corporate tax-related fines.
How Much Does FTA VAT Registration Cost?
VAT registration on the FTA portal is completely free. However, the process can be tricky, especially for first-time applicants or busy business owners.
That’s why many businesses partner with professionals like Outsource Prime Accountants and Bookkeepers (OPAB). They ensure your application is correct, complete, and submitted on time to help you avoid costly fines and rejections.
📚 Also read: Best Accounting Software in UAE
Can You Cancel or Update Your VAT Registration?
Yes, businesses can update or cancel their VAT registration through the FTA portal when necessary.
You may cancel your registration if:
- ✔️ Your taxable revenue falls below AED 187,500 over 12 months
- ✔️ You permanently close your business
You can also update your details (like address, contact, or business activities) by logging into your account and submitting a change request.
Who Can Help You With VAT?
If VAT feels too overwhelming or you want to ensure accuracy, it’s smart to get support from professionals.
Outsource Prime Accountants and Bookkeepers (OPAB) specializes in VAT registration, compliance, and financial reporting for businesses in the UAE. From application to filing quarterly returns, OPAB simplifies the entire process.
📚 Also read: Best Business in UAE 2025
Conclusion
FTA VAT registration is a key part of running a legal and successful business in the UAE. Whether you’re a startup or a growing enterprise, registering on time helps avoid penalties and builds trust with clients.
For expert accounting and bookkeeping services, turn to Outsource Prime Accountants and Bookkeepers (OPAB). We make VAT registration, return filing, and compliance simple and stress-free.
Have questions or need help with VAT setup and compliance? OPAB is here to assist UAE businesses like yours. Contact us today!
Frequently Asked Questions About FTA VAT Registration
How to register VAT in the FTA portal?
To register, create an account on the FTA e-Services portal. Fill out the VAT application form, upload your documents, and submit it for review. After approval, your TRN will be issued and available in your account.
Who is eligible for VAT registration in UAE?
Businesses with taxable supplies or imports above AED 375,000 must register. Those above AED 187,500 may register voluntarily based on supplies, imports, or taxable expenses. If below that, registration is not required.
How to pay VAT through FTA?
Log into the FTA portal, file your VAT return, and proceed to payment. You can pay using e-Dirham, credit card, or bank transfer. Make sure to pay by the deadline to avoid penalties.
How much is the VAT registration fee in UAE?
VAT registration via the FTA portal is free. Some firms charge fees for handling your application, but this is optional. Fines apply only if you delay registration or file returns late.
