VAT Registration Threshold UAE (2025): Explained Clearly

In the UAE, the VAT registration threshold was introduced in 2018 as part of the VAT tax (Value Added Tax) system, which aims to diversify the revenue sources of the country. Understanding VAT registration threshold UAE is important for businesses to determine whether registration is mandatory and to ensure complete compliance with the Federal Tax Authority (FTA) rules.

This VAT registration user guide provides a clear overview of who should register, helps prepare the document, meets industry-specific requirements, and can help avoid general mistakes for a smooth registration process.

Who Must Register Under the VAT Registration Threshold UAE?

Businesses in the UAE must assess whether they meet the VAT registration threshold UAE to determine whether registration is mandatory or voluntary.

Mandatory vs. Voluntary VAT Registration Threshold UAE

It is necessary to understand the difference between Mandatory and Voluntary VAT registration:

Mandatory: If your turnover is higher than the legal limit, non-compliance may result in heavy fines.
Voluntary: voluntary registration allows businesses to reclaim VAT on business-related procurement, improves cash flows and reliability with suppliers and customers.

Document Checklist for VAT Registration in UAE

Here’s a document checklist to streamline your VAT registration process in UAE:

For the Business:

Below mentioned are the documents required for VAT registration in Dubai:

  • Trade License copy
  • Certificate of Incorporation (if applicable)
  • Memorandum of Association
  • Emirates ID and passport copies of the company owner(s)
  • Proof of business address (Ejari/Tenancy contract)
  • Bank account details and IBAN
  • Income statements or audited financial reports (last 12 months)
  • Customs registration documents (if applicable)

For the Owner/Partners:

  • Emirates ID & passport copy
  • Resident visa copy
  • Contact details (email and mobile number)

Ensure that your VAT registration certificate includes the right legal name and business license number to avoid rejection or delay.

Trade-specific requirements

In some areas, unique documents may be required due to the nature of their operations. For example:

Import/Export Business: Customs registration is mandatory with Dubai customs or other local authorities.
Freelancer or Advisor: Their application needs to clearly define their business activity and income.
Construction and Real Estate Companies: Contracts copies and project details should be provided as part of issuing  VAT tax registration numbers.

 It is best to consult a VAT specialist for sector-specific guidance.

Tips to Prepare for VAT Registration in UAE

Follow these tips for smooth processing:

  • Ensure that all documents are clear and legally scans. 
  • Vocational activity details should be offered trade licenses and real services/products.
  • The details of that company coincide in all documents double-checked. 
  • Maintain frequent financial reporting to justify threshold for registration.
  • Include all auxiliary financial evidence to confirm the eligibility.

Need Help?

Sharjah VAT registration, VAT registration in UAE does not require a stressful process. Our experts of Unicorn Global Solutions can help you compile documents, complete the application and approve your VAT registration certificate without delay. 

At Unicorn Global Solutions, we simplify the process for you.  Unicorn Global Solutions is here to help! Text us on whatsApp  or call us today .

Business Setup Services

Tailoring Compliance Services To Match The Specific Needs Of Businesses.

business

VAT Services

VAT Registration in the UAE ensures compliance with tax laws, offering businesses seamless operations, legal benefits, and access to government contracts. Simplify your VAT process today!

Corporate Tax

Corporate Tax in the UAE supports business growth by ensuring compliance, reducing liabilities, and enhancing financial transparency. Plan efficiently to maximize profits and meet regulatory standards.

Businessad

Business Advisory

Business Advisory services in the UAE empower companies with strategic guidance, risk management, and growth solutions. Unlock your business potential with expert insights and tailored strategies.

bookkeeping

Accounting Services

Accounting Services in the UAE provide precise financial reporting, tax compliance, and strategic insights. Enhance business efficiency with expert accounting solutions tailored to your needs.

payroll

Payroll Management

Payroll Management in the UAE ensures accurate, timely employee payments while maintaining compliance with labor laws. Streamline payroll processes for efficiency and error-free financial operations.

tax rate

Excise Tax Registration

Excise Tax Registration ensures compliance, minimizes risks, and supports seamless business operations. Simplify your tax process and stay aligned with UAE regulations for long-term success.

anti money laundering

AML Services

AML Services in the UAE ensure compliance with anti-money laundering regulations, safeguarding businesses from financial crimes. Protect your operations with expert risk assessment and reporting solutions.

abcd

Website Designing Company

Leading website designing, SEO, and social media company in UAE, offering innovative digital solutions that enhance online presence, strengthen brand visibility, and drive sustainable business growth with proven strategies

Common Questions

Frequently Asked Questions

To register for VAT in the UAE, businesses have to meet specific VAT registration requirements, including crossing compulsory or voluntary VAT limits and providing a complete set of documents such as business licenses, Emirates IDs, passport copies, and financial records.

VAT registration threshold is UAE: AED 375,000 for compulsory registration AED 187,500 for voluntary registration If your taxable supply is higher than these limits, you have to register or voluntarily register.

You will need the following: Trade license, Passport and Emirate ID copies, Financial statement, Bank details, Lease contract, Vocational Activities Details for VAT registration. These help to verify your commercial identity and eligibility.

A VAT registration certificate is an official document issued by the Federal Tax Authority (FTA) after approving your application. This includes your VAT tax registration number, business name, and effective registration date.

Yes. If their taxable expenses or revenue AED is more than 187,500, small businesses and freelancers can apply under the voluntary VAT registration category, allowing them to claim input VAT and increase business credibility

To check the validity of a VAT registration number, visit the TRN verification portal of the FTA. To verify its authenticity, enter the TRN (tax registration number).

Failure to register while meeting VAT registration requirements can cause punishment, penalty, and legal complications. The FTA considers it a serious compliance violation.

If you apply without meeting VAT registration requirements, your application may be rejected or delayed. It is important to align your financial and documents with FTA criteria before applying.

unicorn global solutions

Contact Us

Let's have a chat

1
Scan the code
Call Now Button