A UAE business can register for VAT voluntarily if its taxable supplies and imports, or its taxable expenses, went over AED 187,500 in the last 12 months, or will in the next 30 days. Registration becomes mandatory at AED 375,000. Registration with the Federal Tax Authority (FTA) is free.
Voluntary vs Mandatory VAT Registration
| Voluntary | Mandatory | |
|---|---|---|
| Threshold | AED 187,500 | AED 375,000 |
| What counts | Taxable supplies and imports, or taxable expenses | Taxable supplies and imports |
| Test | Last 12 months, or expected in the next 30 days | Last 12 months, or expected in the next 30 days |
| Choice | Optional | Required |
The FTA says these thresholds don't apply to foreign businesses.
Source: FTA
Who Can Register Voluntarily
- UAE-resident businesses that make taxable supplies
- Whose taxable supplies and imports went over AED 187,500 in the last 12 months, or will in the next 30 days
- Or whose taxable expenses went over AED 187,500 in the same period. This helps new businesses with set-up costs but few sales yet.
If you apply based on expenses, the FTA asks for at least five VAT invoices above the threshold.
Source: FTA
Why Register Voluntarily
- You can recover VAT paid on business costs, under the normal VAT rules
- Your business can issue tax invoices, which many larger clients expect
- You are ready before you reach the mandatory threshold
What Changes After You Register
- You charge VAT on your taxable sales
- You file VAT returns. See our VAT return guide
- You keep VAT records and tax invoices
- Penalties apply if you file or pay late
Weigh these costs before you apply, especially if most of your customers can't recover VAT.
Documents You Need
- Trade licence and any branch licences
- Incorporation or partnership documents
- Emirates ID and passport of owners and authorised signatories
- Power of attorney, if the manager isn't named in the memorandum of association
- A signed and stamped declaration of taxable supplies, with monthly sales since you started
- Supporting evidence, such as invoices, contracts or leases
- For expense-based applications: at least five VAT invoices above the threshold
Files must be PDF, up to 15 MB each.
Source: FTA
How to Apply on EmaraTax
- Create and activate your EmaraTax account.
- Create a taxable person profile and open it.
- Choose VAT registration and fill in the form.
- Upload your documents and submit.
The FTA says the form takes about 45 minutes, and it processes a complete application in 20 business days. All branches are registered under one TRN.
Source: FTA
For the full step-by-step process, see our how to register for VAT guide.
Leaving VAT Later
If your supplies fall below the voluntary threshold of AED 187,500, the FTA's deregistration rules apply. See our VAT deregistration guide.
Source: FTA
Frequently Asked Questions
What is the voluntary VAT registration threshold in the UAE?
AED 187,500 of taxable supplies and imports, or taxable expenses, over the last 12 months or expected in the next 30 days.
Is voluntary VAT registration free?
Yes. The FTA doesn't charge for VAT registration.
Can a new business register for VAT voluntarily?
Yes, if its taxable expenses went over AED 187,500. The FTA asks for at least five VAT invoices above the threshold.
Do I have to file VAT returns after voluntary registration?
Yes. Once registered, you charge VAT, file returns and keep records like any other registrant.
How long does VAT registration take?
The FTA processes a complete application in 20 business days.
Note: This article provides general information only and is not tax advice. Confirm the current requirements with the Federal Tax Authority or a qualified tax professional.