VAT Registration for New Companies in the UAE: A Step-by-Step Guide

This guide explains how to register for VAT in UAE for new company owners, covering the turnover thresholds, the documents to prepare, and each step on the EmaraTax platform.

A UAE-resident business must register once its taxable supplies and imports exceed AED 375,000 over the past 12 months, or are expected to exceed that figure within the next 30 days. Registration is free, the online application takes about 45 minutes, and the FTA processes a complete application within 20 business days.

Here is a complete step-by-step guide for the VAT registration process. 

• What is VAT in the UAE?
• Does your new company need to register for VAT?
• Documents you need before you apply
• How to register for VAT in UAE for new company: Step by step
• What is a TRN number and how do you get your TRN certificate?
• Fees, processing time, and late registration penalties
• Key takeaways
• Frequently Asked Questions

What is VAT in the UAE?

The VAT, or Value Added Tax, in the UAE is managed by the Federal Tax Authority, and every registration, return and certificate runs through EmaraTax, the FTA’s online tax platform, which is available 24 hours a day.

For a new company, it is important to know how the FTA classifies your sales. Its turnover declaration template splits them into supplies taxed at the standard rate of 5%, supplies taxed at the zero rate (0%) and supplies that fall outside the scope of tax. 

Knowing which group your sales belong to helps you work out whether you have crossed a registration threshold.

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Does your new company need to register for VAT?

There are two routes to registration. Mandatory registration applies once your business passes a set value, while voluntary registration lets smaller businesses join the VAT system earlier. Non-resident businesses follow a separate rule.

What about UAE VAT exemptions?

A frequent question among founders is whether their business can operate outside the UAE VAT system. The answer depends primarily on value: for registration purposes, the Federal Tax Authority (FTA) applies a turnover-based test. 

A UAE-resident company whose taxable supplies and imports do not exceed AED 375,000 is not required to register, though it may choose to register voluntarily once that figure exceeds AED 187,500.

Note: Sales outside the scope of tax appear in their own column on the turnover declaration letter, separate from standard-rated and zero-rated sales. Record each category accurately so your threshold calculation reflects your taxable activity only.

Registering on expected turnover

A new company does not need 12 months of trading history to register. If signed contracts or purchase orders show that your taxable supplies and imports will exceed AED 375,000 within the next 30 days, mandatory registration applies, and your 30-day window to apply starts from that point.

Documents you need before you apply

The exact list depends on your legal entity type, but most new companies should prepare the following:

• Certificate of incorporation, registration certificate or partnership agreement
• Valid trade licence and commercial registration
• Emirates ID and passport copies for owners and authorised signatories
• Power of attorney for the authorised signatory, if applicable
• A signed and stamped turnover declaration letter
• Supporting documents such as invoices, contracts, purchase orders and tenancy contracts
• A bank account letter

The turnover declaration letter

This letter, addressed to the FTA, sets out your sales and expenses from the date of establishment. It lists standard-rated sales, zero-rated sales, out-of-scope sales and standard-rated expenses, both by year and by month.

You also state the month and year you started making taxable supplies, and the month and year you reached the mandatory or voluntary threshold. The letter includes a declaration that the figures are complete and backed by documentary proof, so keep your invoices, purchase orders and contracts organised before you sign it.

How to register for VAT in UAE for new company: Step by step

Once your documents are ready, the application itself takes less than an hour on EmaraTax. Follow these steps:

1. Sign up: Sign in through UAEPass and access your EmaraTax account through the FTA website.
2. Activate your account: Complete the activation to unlock your access.
3. Log in to your dashboard: This is where all your tax services and records will sit.
4. Create a taxable person profile: Select the option to create a new taxable person and enter your company details.
5. Open the taxable person account: Click “View” on the profile you just created.
6. Start the VAT application: Click “Register” under Value Added Tax.
7. Complete and submit: Fill in each section of the form, upload your PDF documents and submit the application.

If you own more than one sole establishment, all of them register under a single TRN. The same applies to a company with several branches, which register under one TRN and file a combined VAT return.

Still setting up your premises? Browse commercial properties for rent on Property Finder. Your tenancy contract is one of the supporting documents the FTA accepts. If you have not finalised your licence yet, read our guide to getting a trade licence in the UAE first.

What is a TRN number and how do you get your TRN certificate?

A TRN, or Tax Registration Number, is the number the FTA assigns to your business when your VAT registration is approved. It acts as your taxpayer identification number in the UAE for VAT purposes, and one TRN covers all sole establishments of the same owner and all branches of the same company.

After the FTA approves your application, your VAT registration certificate, often called the TRN certificate, becomes available in the dashboard of your EmaraTax account. Download a copy and keep it on file, as clients and suppliers may ask for proof of registration before they work with you.

Fees, processing time, and late registration penalties

The 20-business-day timeline only starts once the FTA has a complete application, so missing or unclear documents can slow your approval. Check every upload before you submit.

If you miss the 30-day deadline, the FTA applies a late registration penalty under the applicable tax legislation. Confirm the current penalty amount with the FTA rather than relying on older figures.

Key takeaways

• Mandatory registration applies once taxable supplies and imports exceed AED 375,000, measured over the past 12 months or expected within the next 30 days.
• New companies can register on expected turnover, backed by contracts, purchase orders or invoices.
• Registration on EmaraTax is free, takes about 45 minutes and is processed within 20 business days.
• Your TRN certificate appears in your EmaraTax dashboard once the FTA approves your application.

Frequently Asked Questions

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