If a business registers voluntarily they will be able to claim back input VAT so it could be beneficial to a new business or business with large start-up costs, etc.
Important Legal Updates in 2025
Changes to the VAT regime were introduced by the amendments under Cabinet Decision No. 100 of 2024 came into effect on November 15, 2024.
- New rules on VAT application to virtual assets and certain financial services
- Clarified treatment of zero-rated exports and international transportation
- Defined limits for input tax recovery, especially related to employee benefits
- Updates to electronic invoicing requirements
These updates build upon prior changes made under Cabinet Resolution No. 49 of 2021, which revised administrative penalties originally listed in Cabinet Resolution No. 40 of 2017.
What You Need Before Signing Up for VAT
Companies should get all their paperwork ready before they start to register. The Federal Tax Authority might take longer or say no if you don't have everything. You'll need these papers:
- Trade license copy
- Copies of the passport and Emirates ID for the company's owner or manager
- Your MOA or Certificate of Incorporation
- How to reach your business, like a working email and phone number
- Your bank account info
- Financial statements for the past 12 months
- Customs registration details (if the business is involved in import/export)
Here is How to register VAT in the UAE (in 6 steps)
The EmaraTax is the online platform that aids businesses in getting registered through the Federal Tax Authority in the UAE. It is possible to perform the process under a number of steps:
Step 1: Account Creation on EmaraTax
Begin by visiting the FTA’s online portal at eservices.tax.gov.ae. Click on “Sign up” to create an EmaraTax account. You will be required to give the basic user information including your full name, mobile number, email address and a password.
After creating your account, confirm your email address by clicking on the activation link that is mailed to you at the email address you used to create the account. This is a vital step because all future correspondence on VAT registration shall be addressed to this contact address.
Step 2: Business Profile Setup
After account creation, log in and set up your business profile. You’ll be required to input:
- Legal name of the business (in both English and Arabic)
- Trade license number and issuing authority
- Business type (LLC, sole proprietorship, etc.)
- Date of incorporation and commencement of taxable supplies
You will also need to upload digital copies of your trade license and MOA.
Step 3: Provide Financial Details and VAT Threshold Assessment
This step determines your eligibility for VAT registration. The portal will prompt you to enter:
- Total taxable turnover for the past 12 months
- Expected taxable turnover for the next 30 days
- Taxable expenses for voluntary registration (if applicable)
- Details of any exempt supplies made
Ensure figures are accurate and supported by financial records, as discrepancies could trigger verification delays or application rejection.
Step 4: Supply and Import Details
You will also be required to describe the nature of your business activities. This includes:
- Description of goods and services supplied
- GCC trade involvement (whether you export to/import from GCC countries)
- Customs registration numbers (if relevant)
If the company is part of a tax group or intends to register as one, the information must be declared here.
Step 5: Enter Banking and Contact Information
Provide the official banking details used by the company for transactions, including:
- Bank name and branch
- IBAN number
- Account holder name (must match the company name)
This section should be verified twice that there are no typo errors because VAT returns will be returned to this bank account.
Step 6: Review, Confirm, and Submit
Before submission, you’ll be prompted to review all details entered. If satisfied, click on the declaration box to confirm the accuracy of information provided.
Submit the application. You will receive a confirmation email with your application reference number. The FTA generally takes up to 20 business days to review and approve the application. If successful, you’ll be issued a Tax Registration Number (TRN).
Post-Registration Obligations
Once registered, your business must:
- File VAT returns (typically quarterly)
- Pay VAT dues by the 28th day following each tax period
- Issue tax invoices that meet FTA standards
- Maintain all financial and VAT records for at least five years
Failure to meet these obligations can result in administrative penalties.
Can You Deregister Later?
You can also request VAT deregistration in case your taxable turnover is less than AED 187,500 or in case your business has stopped. The FTA will look into the application and once approved, your TRN will be deactivated.
Outstanding liabilities must be settled, and a final VAT return is required. Delayed deregistration can result in unnecessary filing obligations and fines.
How Parsh.ae Can Assist You
Navigating VAT regulations requires precision. At Parsh.ae, we simplify the process—from initial evaluation and registration through EmaraTax to return filings and compliance monitoring.
Our team ensures:
- Proper eligibility assessment
- Error-free documentation
- On-time VAT submissions
- Continued compliance with 2025 updates
In conclusion
Registration of VAT in the UAE is mandatory and associated with clearly defined turnover limits. Being informed, prepared, and in compliance does not only prevent you against fines but also creates the trust with partners and clients. As tax laws continue to change, it is best to work with people such as Parsh.ae who will keep your business on track at all times.
For VAT registration or compliance support, connect with Parsh.ae today.