Who must register for VAT in the UAE?
Any business whose taxable turnover exceeds AED 375,000 over a rolling 12-month period must register with the Federal Tax Authority (FTA); below that, voluntary registration is possible from AED 187,500. An exception exists: where all of a business's supplies are zero-rated — typically an export-only activity with no clients in the Gulf Cooperation Council (GCC) — it may apply to the FTA for an exception from registration under Article 15 of the VAT Law, even above the threshold. Prosilame handles the file end to end:
- Check whether your activity is taxed at 5%, zero-rated, or exempt, and determine the applicable threshold.
- Assess eligibility for the registration exception where all your clients are outside the GCC and your supplies are entirely zero-rated.
- Gather the documents required by the FTA (licence, activity register, projected turnover).
- File the registration — or exception — application and obtain the TRN (Tax Registration Number) or the exception confirmation.
- Set up compliant invoicing (mandatory particulars, applicable rate, currency).
- Set the periodic filing calendar, or, where an exception applies, monitor that its conditions continue to be met.
Common failure points
The situations we handle.
- Late registration after crossing the threshold, with late-filing penalties.
- Registration exception kept in place after a GCC client or a local sale appeared, with no notification to the FTA.
- Invoices that do not meet the FTA's mandatory particulars (TRN, rate, currency).
- Confusion between exempt and zero-rated supplies, leading to incorrect VAT recovery.
Deliverables
What you get.
Registration diagnosis
Analysis of your activity, the applicable threshold and eligibility for the registration exception.
FTA registration or exception
Complete file and TRN, or exception confirmation.
Compliant invoicing
Invoice templates and internal procedures aligned with FTA requirements.
Filing follow-up
Filing calendar, or monitoring of the registration-exception conditions.
Our approach
Our approach.
VAT is not a side formality: poorly handled, it exposes the business to penalties and an FTA audit. We start from your real invoicing model — clients, suppliers, intra-group flows — to determine whether registration is mandatory, whether an exception can be requested for lack of GCC clients, and to put in place a filing system that holds up over time, before the administration does it for you.
Diagnosis & exception
Analysis of the applicable threshold and eligibility for the registration exception.
Registration & invoicing
FTA file and compliant invoicing set up.
Filing follow-up
Filing calendar and ongoing monitoring of conditions.
Frequently asked
VAT registration and compliance in the UAE — your questions.
Over what period is the AED 375,000 threshold assessed?
Over the preceding 12 rolling months or the next 30 projected days, whichever is less favourable to the taxpayer. Monthly monitoring is recommended once activity approaches this threshold.
Can I avoid registration if I have no GCC clients?
Yes, subject to conditions: if all of your supplies are zero-rated — the typical case of an export-only activity outside the GCC — you can apply to the FTA for a registration exception under Article 15 of the VAT Law. The administration must still be informed as soon as this changes, for example if a GCC client or a local sale appears.
Does a Freezone company have to register for VAT?
It depends on its Designated Zone status and where its clients are located. Some transactions between designated zones fall outside VAT, others do not — the regime is assessed case by case.
What are the penalties for late registration?
The FTA applies a fixed penalty for a late registration application, in addition to penalties on returns not filed on time.
Related practices and analysis
Related practices, and the analysis behind them.
A matter on VAT?
A 30-minute call to check your VAT registration obligation, or your eligibility for the exception.
See matters the firm has handled and what clients say about them.
AED 600 individuals · AED 1,000 professionals
Payable before the call, by card or bank transfer. See fee details.