VAT Registration Requirements & Process: Beginner-Friendly Guide 

Hey there!
We know that VAT registration process might be a real headache, so we prepared this guide for you. In this Article, we’ll explain what VAT is and all the registration requirements: from the list of documents you need and types of registration to the step-by-step process and common mistakes to avoid. Let’s go!

What is a Value Added Tax?

Value Added Tax is a general consumption tax applied to most goods and services at each stage of the supply chain. Businesses charge VAT on their sales (output tax) and can usually reclaim VAT paid on eligible business purchases (input tax).

Your obligation to register is linked to annual turnover — the value of your taxable supplies over the past 12 months. Once you cross the relevant threshold, you must register, obtain a tax number, and start charging, recording, and filing VAT.

VAT-registration requirements

Mandatory vs Voluntary

There are two types of VAT registrations: mandatory and voluntary. Let’s find out the difference between them.

Mandatory registration is required for your company if annual turnover exceeds AED 375,000 in the last 12 months or is expected to surpass this level within the next 30 days. You can predict threshold surpass based on signed contracts, purchase orders, planned deliveries, or early payment invoices.

If you do not meet the mandatory threshold, you can opt for voluntary registration — but only in case your annual turnover exceeds AED 187,500 over the past 12 months, or is expected to do so in the next 30 days. 

If your company’s turnover is below AED 187,500, you do not need to register for VAT yet.

How to calculate annual turnover?

To check whether your business has reached the VAT registration threshold, you need to calculate your annual turnover. In the UAE, turnover includes all taxable supplies and imports made during the past 12 months. When calculating it, follow the rule of the earliest event — your turnover is recognized based on whichever happens first:

• The invoice is issued
• The payment is received
• The goods or services are delivered

For example: you issued an invoice on March 5, completed the service on March 10, and received payment on March 15. For VAT purposes, the turnover is recognized on March 5, because that’s the earliest event.

When do I have to apply for VAT registration, and how long would it take?

The VAT registration requirements are very clear. According to UAE tax laws, you must send in your application no later than 30 days after you become legally required to do so. In theory, it takes around 45 minutes to finish the online application, and the FTA takes up to 20 working days to process your submission. But in reality it might take much longer due to incomplete documentation, missing data and, as a result, endless additinal clarification requests from Federal Tax Authority.

List of documents required for VAT registration in UAE

To get approval from the Federal Tax Authority quickly, you need to carefully prepare the documents for the VAT registration. This is very important because in our experience, incorrect or incomplete paperwork is one of the biggest reasons for delays or rejections.

Essential documents for VAT registration

Here is a checklist of the core documents required for VAT registration:

Additional documents required for VAT registration

For Legal Entities:

• Certificate of Incorporation
• Memorandum of Association / Articles of Association/Partnership Agreement
• Emirates ID (if applicable)
• Passport copy for every owner or manager
• Power of attorney document for the authorized signatory, required if the authorized signatory’s name is not mentioned in the Memorandum of Association, or when adding other individuals as authorized signatories.
• Bank letter detailing the business’s bank account information (optional)

For Government Entities:

• Copy of the establishing Decree

For Individuals:

• Emirates ID and passport copy
• Customs information (if available)
• Bank letter

For Clubs/Charities/Associations:

• Registration documents and supporting evidence

Before sending anything in, verify that each scanned document (PDF or DOC) is under 15 MB in size and has legible text.

Source: FTA VAT registration requirements

Step-by-Step guide: how to register for VAT?

Create an EmaraTax Account
Go to the FTA website and create an account. You can use UAE Pass to log in.

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Create a Taxable Person Profile
After logging in, you must create a new “Taxable Person” profile. This is done by entering the mandatory details for your business entity.

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Initiate Online VAT Registration
To begin the formal VAT registration process click the “Registration” button on the VAT tab in your Taxable Person dashboard.

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Complete the Multi-Section Application
Fill out all mandatory fields in each sequential section of the VAT registration form, starting with Entity Details and Identification Details. Then, you’ll be asked to supply Eligibility Details, Contact Details, Business Relationships, Bank Details (bank account details are optional but recommended), Additional Details, and Authorized Signatory information.

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Review, Declare, and Submit
Double-check the data you supplied in the final section of the VAT registration. Then, click “Submit” to send the paperwork for consideration. Save your application reference number.

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Await Decision
Keep an eye on your dashboard regularly – the FTA can request further information before the final decision regarding your VAT certificate. Based on our past experience, the average timeframe is 2-3 working weeks.

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Get your VAT Certificate and Tax Registration Number (TRN)
A TRN is required to file VAT returns and ensure legal compliance with FTA.

Registration Assistance

If you need visual guidance to figure out how to register for VAT, you can refer to the helpful e-learning video provided by FTA. Also, all questions regarding the VAT in the UAE (how to pay VAT, how to file VAT returns, how to claim input tax credits, etc.) can be addressed to Tara, FTA’s AI assistant.

Common Mistakes to Avoid During UAE VAT Registration

Here is a table with frequent VAT registration mistakes, their consequences, and tips to prevent them:

Skrooge.ai: Who are we and how can we help you?

We are a new generation accounting company — run by finance professionals and Skrooge — the clever AI CFO. As experts we deliver clarity, insight, and strategic guidance while AI automation minimizes human errors. Our mission is simple: we save your time and money while delivering clear, precise and tax-compliant financial statements.

VAT registration and further compliance

Applying for VAT registration can feel overwhelming: tracking your taxable supplies and imports, collecting documents, filling outforms, and juggling deadlines on the top of growing your business. That’s where Skrooge.ai comes in. With us, the process becomes smooth because:

• No more rejected applications. We handle your registration process end-to-end.
• No more missed thresholds. We constatntly monitor your rolling 12-month turnover.
• No more skipped deadlines and penalties. We set up reminders to keep you on schedule.
• No more worries about future tax compliance. We cover your accounting — manage your periodic VAT returns and ongoing bookkeeping to keep your VAT accurate and on time.
• No more headaches with strict FTA standards. Here is a huge list of requirements and at Skrooge we use both pairs of eyes – AI and certified accountants which helps to ensure 100% accuracy.

This material is for informational purposes only and does not constitute legal or tax advice.

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