Mandatory VAT Registration
If your taxable supplies and imports exceed AED 375,000 over the past 12 months — or are expected to in the next 30 days — your business is required to register for VAT in the UAE. Missing the registration deadline can result in heavy fines and limit your ability to issue VAT-compliant invoices, which most clients and partners require for transactions.
Voluntary VAT Registration
If your annual taxable supplies or expenses are above AED 187,500, you can voluntarily register for VAT. While optional, voluntary VAT registration in Dubai allows you to reclaim input VAT on eligible expenses, improving cash flow and strengthening your financial credibility — especially valuable for startups and SMEs working with suppliers, banks, and investors.
VAT Penalties for Non-Registration in the UAE
Failing to register for VAT on time can result in serious financial penalties from the Federal Tax Authority (FTA). The fine for late registration is currently AED 10,000, and further non-compliance can trigger additional penalties for missed filings, incorrect returns, or underpayment. Vista helps ensure your registration is completed correctly and on time, protecting your business from unnecessary costs.
Businesses Exempt from VAT in the UAE
Not every business in the UAE is required to register for VAT.
Exempt sectors include:
- Certain financial services
- Residential real estate (non-commercial leases and sales)
- Local passenger transport
- Bare land transactions
Vista’s VAT consultants in Dubai can help you confirm if your business qualifies for exemption or zero-rated treatment and structure your operations accordingly.
Documents Required for VAT Registration in the UAE
To complete your VAT registration in Dubai, you’ll need the following documents:
- Valid Trade License
- Passport and Emirates ID of the owner/partners
- Company’s Memorandum of Association (MOA)
- Proof of business address (Ejari or tenancy contract)
- Financial statements or turnover proof
- Customs code (if applicable)
Vista ensures all your documentation meets FTA standards, avoiding delays or rejections during VAT registration.
VAT Registration for New Companies in Dubai
If you’ve recently launched your business, understanding how to apply for VAT registration in the UAE is vital. Vista helps new companies identify the right registration category, prepare the required documentation, and secure TRN approval quickly. With our support, you can start issuing VAT invoices confidently from day one.
VAT for Free Zone vs Mainland Companies
VAT treatment in the UAE depends on where your business operates. Mainland companies must charge 5% VAT on all taxable supplies and file regular returns as per FTA rules.
Designated free zones, however, may enjoy VAT exemptions on transactions within or between zones. But any supplies made to the mainland remain taxable.
Vista’s VAT experts in Dubai help you apply the correct VAT treatment for your setup — ensuring full compliance whether you operate on the mainland or in a free zone.