
Looking to register your business for VAT in Dubai? Mehar Business Solution LLC offers fast and easy VAT registration services to help you get your Tax Registration Number (TRN) quickly. Our experienced PRO team ensures your business meets all Federal Tax Authority (FTA) requirements accurately and on time, keeping you fully compliant with UAE tax laws.
Value Added Tax (VAT) is a tax applied to the sale of goods and services. In the UAE, businesses that reach certain turnover limits must register for VAT with the Federal Tax Authority (FTA). After registration, the business receives a Tax Registration Number (TRN), which must be included on all invoices, contracts, and tax filings.
While the process for forming a mainland company is relatively straightforward, it requires attention to detail and adherence to UAE legal and regulatory requirements. Here are the typical steps involved:
Here is your VAT registration process rewritten in simple, clear, and natural step-by-step style:
Steps to Register for VAT in the UAE:
VAT in the UAE is categorized into the following types depending on the nature of goods or services:
Standard Rated (5%): Applies to most goods and services.
Zero Rated (0%): Applies to exports, international transportation, and certain education and healthcare services.
Exempt: Includes some financial services, residential property, and local passenger transport.
| Type | Threshold | Purpose | Who Should Apply? |
|---|---|---|---|
| Mandatory | AED 375,000+ | Legal compliance | All eligible businesses |
| Voluntary | AED 187,500+ | Input VAT recovery, business credibility | Startups and small businesses |
Some goods and services are either exempt from VAT or fall under zero-rated categories:
If you are starting a business or need to apply with the UAE VAT law, let our experts assist you. Mehar Business Solution LLC offers complete VAT registration, compliance, and advisory services across all Emirates.
VAT (Value Added Tax) in the UAE is a 5% tax on the sale of goods and services. Introduced on January 1, 2018, by the Federal Tax Authority (FTA), it requires businesses that meet the set threshold to register, collect VAT from customers, and pay it to the government. VAT is applied at each stage of the supply chain, and businesses can reclaim VAT paid on business-related purchases.
If your business earns more than AED 375,000 in taxable revenue per year, VAT registration is mandatory. If your revenue is above AED 187,500, you can register voluntarily. This applies to companies, freelancers, online sellers, and other service providers. Late registration can result in fines and penalties.
You can apply online through the FTA e-Services portal. Here are the steps:
Penalties for not registering on time include:
There are two special categories under VAT:
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