01
Account setup
Creating and configuring your account on the Federal Tax Authority portal.
VAT & Tax
VAT registration
and tax residency.
Once your taxable turnover passes the threshold, registration becomes mandatory and being late carries a penalty. We register you, set up the filing routine and obtain your residency certificate.
Mandatory or voluntary?
We review your invoices, quotations, contracts and purchase orders to establish which category you fall into.
Threshold 1
Mandatory registration
If the value of your taxable supplies exceeded AED 375,000 over the previous 12 months, or is expected to in the next 30 days, registration is mandatory.
- You have 20 working days to apply once the threshold is crossed
- Being late attracts an administrative penalty
- A corporate bank account is needed to complete registration
Threshold 2
Voluntary registration
If the value exceeded AED 187,500 over the previous 12 months, or is expected to in the next 30 days, you may register voluntarily.
- You can recover the VAT you incur as input tax
- It signals legitimacy to corporate customers
- The filing obligation comes with it
Must know
If your turnover is below AED 187,500 you are not yet eligible to register.
If you have crossed the mandatory threshold, you must apply within 20 working days.
A corporate bank account must be open for the registration process to run.
What we do
02
Documents
Preparing documents in the format the authority requires and submitting the application.
03
TRN certificate
Issuing your Tax Registration Number certificate once registration completes.
04
Tax residency
Obtaining an individual or corporate tax residency certificate from the Federal Tax Authority.
Rates
| Service | Fee |
|---|---|
| VAT registration | AED 1,050 |
| Individual tax residency certificate | AED 1,500 |
| Corporate tax residency certificate | AED 2,500 |
Tax residency fees do not include government charges.
All fees are inclusive of 5% VAT.
Prices are indicative. Official fees and free zone tariffs change during the year; the exact figure is confirmed in writing in your quote.
How VAT works in the UAE
VAT came into force in the UAE on 1 January 2018 and the standard rate is 5%. It applies to most goods and services, and to imports.
Zero-rated supplies
Some supplies are zero-rated. That does not mean they are outside VAT — registration and filing obligations continue, only the rate charged is nil. The main ones:
- Exports to countries outside the Gulf Cooperation Council
- International transport
- Supply of crude oil and natural gas
- Supply of investment-grade precious metals of high purity
- Certain healthcare and education services
- Residential property supplied for the first time within three years of construction
Exempt supplies
For exempt supplies no VAT is charged and the VAT incurred on them cannot be recovered. The main exemptions are certain financial services, the supply and lease of residential property, bare land and local passenger transport.
Input tax
You charge VAT on your sales and pay VAT on your purchases. The VAT payable is what you collected less what you incurred. That mechanism means the tax lands only on the end consumer, not at every link in the chain. VAT incurred on exempt supplies cannot be recovered.
Filing and penalties
- Returns are filed electronically within 28 days of the end of the period.
- The period length depends on turnover; large taxpayers file monthly, others usually quarterly.
- Failing to file attracts an administrative penalty, which increases on repetition.
- Late payment attracts a separate penalty that grows over time and can reach a multiple of the unpaid amount.
- Even if all your supplies are zero-rated, you must still file.
How it relates to corporate tax
VAT and corporate tax are separate obligations; neither replaces the other. Corporate tax has applied since 2023: the rate is 0% on taxable profit up to AED 375,000 and 9% above it. Free zone companies that meet the Qualifying Free Zone Person conditions continue to benefit from 0% on their qualifying income.
Corporate tax registration is mandatory even where no tax is payable.
Do you have to register?
We'll review your invoices and contracts and tell you which threshold you're at and what to do.