Understanding VAT Obligations

Businesses operating in the UAE must comply with Value Added Tax regulations introduced in 2018. In 2025, enforcement has become stricter, and proper VAT registration in UAE is now a critical part of maintaining legal and financial credibility. Whether you're a startup or an established company, if your taxable revenue crosses the registration threshold, you are legally required to register through the Federal Tax Authority.

Who Needs to Register and When

If your business exceeds AED 375,000 in taxable turnover within the previous 12 months or expects to exceed this amount in the next 30 days, UAE VAT registration is mandatory. Voluntary registration is also available if your revenue exceeds AED 187,500, which may benefit early-stage businesses by allowing input VAT claims. These thresholds apply to all UAE-registered entities, including Free Zone companies, depending on their operational scope.

How to Register for VAT in the UAE

The process is completed online via the FTA portal, the official platform for all tax-related submissions. You will need to create a business tax account, fill in the application form, and submit scanned copies of your trade license, Emirates ID, passport (for owners and managers), bank account details, and financial turnover records. Once approved, the authority issues a VAT certificate, which includes your tax registration number—this must be displayed on invoices and correspondence.

Key Points About the VAT Threshold

The VAT threshold in UAE is based on total taxable supplies, including standard-rated, zero-rated, and reverse-charge transactions. Businesses must continuously monitor their revenue to determine when they cross the mandatory or voluntary threshold. Failure to register in time can lead to heavy fines and complications with other licensing or immigration processes.

Staying Compliant After Registration

Once registered, businesses must charge VAT on eligible supplies, file periodic returns, and maintain detailed transaction records. Compliance also includes issuing proper invoices and retaining books for at least five years. Non-compliance can result in penalties and audit investigations. Understanding and implementing the correct processes from the start is essential for long-term sustainability.

How 28Group Can Help You Register and Comply

At 28Group, we assist businesses with every stage of VAT registration in UAE—from confirming eligibility and gathering documents to submitting accurate applications and ensuring post-registration compliance. We help you understand your obligations under UAE VAT rules, avoid common filing mistakes, and align your operations with current FTA requirements so you can grow confidently within the regulatory framework.