VAT Registration in UAE

Who Needs to Register for VAT?

VAT registration in UAE is a legal requirement for businesses that meet the Federal Tax Authority (FTA) threshold. Proper VAT registration ensures full compliance with UAE tax regulations, enables input VAT recovery, and allows your business to operate without the risk of penalties or reporting issues.

At Altus Citadel Services, we provide professional VAT registration in the UAE for both mainland and free zone companies. Our team manages the entire process, including eligibility assessment, documentation preparation, FTA submission, and ongoing compliance support, ensuring your business is registered correctly and efficiently from the start.

You must register for VAT if:

  • Your taxable turnover exceeded AED 375,000 over the past 12 months.
  • You expect your turnover to exceed AED 375,000 within the next 30 days.
  • Your turnover or expenses are above AED 187,500, making you eligible for voluntary registration.
  • You are a new company projecting growth above the registration threshold.

VAT Rates & Key REQUIREMENTS

  • Standard Rate: 5% is applied to most goods and services, including commercial properties.
  • Late registration penalties start from AED 10,000.
  • Voluntary threshold: AED 187,500.
  • Mandatory threshold: AED 375,000.
  • Zero-rated supplies: 0% (exports, certain healthcare, education, international transport)
  • Filing Frequency: Quarterly (most businesses) or Monthly (larger businesses as assigned by FTA)
  • Businesses can recover VAT paid on eligible business expenses
  • Businesses must maintain records for at least 5 years (invoices, ledgers, VAT Returns, etc.)
  • Not all Free Zone transactions are VAT-free. Free Zone VAT Treatment depends on: “Designated Free Zone” status & Type of transaction (goods vs services)

How to Register for VAT?

Seamless process managed by our expert team.

Initial Consultation

We assess your business structure, turnover, and VAT obligations to determine the correct registration approach.

01

Document Collection
You provide the necessary company and shareholder documents, which we review to ensure they meet FTA requirements.

02

Registration Application

We prepare and submit your VAT registration application through the FTA portal, ensuring all details are accurate and complete.

03

Issuance of VAT Registration Certificate
Once approved, the FTA issues your VAT Registration Certificate, confirming your business is officially registered for VAT compliance in the UAE.

04

Frequently Asked Questions (FAQs)

How long does the VAT registration process take?

Approval from the FTA typically takes 2 to 3 weeks from the date of application submission.

Late registration penalties start from AED 10,000, as enforced by the FTA.

Yes. Businesses with taxable turnover or expenses above AED 187,500 can opt for voluntary VAT registration.

Yes, VAT registration is generally a one-time process, but you must ensure that your registration details remain accurate and up-to-date with the FTA.

Absolutely. As an FTA-approved tax agent, we can fully represent your business for all VAT compliance matters, including registration, filing, and audits.

AED 375,000 per year is the mandatory registration threshold. If your taxable supplies and imports exceed this amount over the previous 12 months — or you expect to exceed it in the next 30 days — you are legally required to register for VAT with the FTA. Voluntary registration is available from AED 187,500 per year, which can be beneficial if you want to recover input VAT on business expenses before hitting the mandatory threshold.

It depends on the nature of the free zone and business activities. Businesses in “designated zones” (as defined by the FTA) may benefit from VAT suspension on goods moved between designated zones and not entering the mainland UAE market. However, free zone companies that supply services or goods to the UAE mainland, or that exceed the registration threshold, are generally required to register and charge VAT. Each situation should be assessed individually.

Zero-rated supplies are taxable at 0% VAT. Businesses making zero-rated supplies can still recover input VAT on related costs. Common zero-rated categories include exports of goods and services outside the GCC, international transport, certain food items, healthcare, education, and investment-grade precious metals.

Exempt supplies are not subject to VAT and businesses cannot recover input VAT on costs related to exempt activities. Exempt categories include certain financial services, residential property (bare land and first supply of residential buildings), and local passenger transport.

Speak to a VAT Specialist

VAT compliance in the UAE can be complex. Whether you need to register, file returns, or resolve an FTA query, our VAT specialists are here to guide you every step of the way.

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