AhmedWalid HalabiVSD Global
Aurion is one of the best consulting teams in the UAE for all activities of company formation and related matters. We trust them the most.
VAT Registration
Register for VAT in the UAE — Without the Guesswork
If your taxable turnover has crossed AED 375,000, VAT registration with the Federal Tax Authority is mandatory. Aurion handles your TRN application, documentation and ongoing VAT compliance from start to finish.
DED-Licensed Setup
VAT in the UAE
What VAT Means for Your Business
VAT was introduced in the UAE on 1 January 2018 under Federal Decree-Law No. (8) of 2017. It's charged on most goods and services at a standard rate of 5% — low by global standards, but still a compliance obligation every growing business needs to plan for.
5% Standard Rate
VAT is levied on most goods and services at a flat 5% — among the lowest VAT rates in the world.
AED 375,000 — Mandatory Threshold
Any business with taxable turnover above AED 375,000 in the past 12 months (or expected in the next 30 days) must register with the Federal Tax Authority.
AED 187,500 — Voluntary Threshold
Businesses with turnover above AED 187,500 can register voluntarily — useful for reclaiming VAT paid on business expenses before hitting the mandatory line.
Your Tax Registration Number
Once registered, you receive a TRN — the number you'll use to file returns, issue compliant tax invoices, and claim refunds.
Documentation
Documents Required for VAT Registration
VAT registration is completed through the Federal Tax Authority's online portal. Aurion prepares and submits every document your application needs, so nothing holds up your TRN.
- Trade License
- Certificate of Incorporation or Registration Certificate
- Copy of Passport and Emirates ID of the Manager
- Memorandum / Articles of Associationor partnership agreement showing ownership
- Bank Account Details
- Physical Office Location of the Business
- Contact Details
- Profile of the Manager
- Business Activities of the Applicant
- Actual or Estimated Financial Transaction Values
- Customs Registration Detailsif applicable
- Expected Turnover in the Next 30 Days
- Expected Exempt Supplies
- Import and Export Activity
- GCC Business Activities
- Turnover for the Last 12 Monthswith supporting documents
Freezones & Designated Zones
Does VAT Apply Inside a Designated Zone?
Not every Freezone gets special VAT treatment.
Only Freezones named in a Cabinet Decision qualify as Designated Zones — treated as outside UAE VAT territory for certain supplies of goods, subject to strict criteria and detailed record-keeping. Services, however, always follow normal UAE VAT rules regardless of zone. To hold Designated Zone status, a zone must meet these ongoing criteria:
- A specific geographic area enclosed by a security fence
- Security measures and Customs controls monitoring entry, exit and the movement of goods
- Internal procedures for storing, keeping and processing goods within the zone
- Operator compliance with procedures set out by the Federal Tax Authority
Offshore Companies
Where Offshore Companies Stand on VAT
Offshore companies are legally non-resident in the UAE.
They cannot trade or operate a business within the country.
So they fall outside the scope of UAE VAT law.
But VAT still applies — on your Registered Agent's incorporation and annual fees.
Aurion's VAT consultants track every rule so you never overpay or underfile.
VAT De-Registration
When You're Required to De-Register
Annual Turnover Drops BelowAED 187,500
Filing Window After the Trigger Event20 Working Days
Voluntary Registration Minimum Term12 Months
Taxable SuppliesMust Have Stopped Entirely
The FTA requires de-registration whenever your turnover falls under AED 187,500 in the past 12 months, your taxable supplies stop, your annual expenses drop below the AED 375,000 threshold, 12 months have passed since a voluntary registration, or your company is being liquidated. Miss the window and the FTA can issue fines for late de-registration.
Voluntary registrations have no fixed deadline to de-register — the 20-working-day window applies to the other trigger events above.
De-Registration
Documents & Clearance for VAT De-Registration
Documents to Submit
- Company liquidation letter from the relevant authorities (if the company is closing)
- Audited financial statements (signed & stamped) for the last 12 months, showing taxable supplies below the threshold
Submit your de-registration application within 20 working days of the triggering event to avoid FTA fines.
Clearance Before Approval
- Outstanding Taxes Paid (all VAT liabilities settled in full)
- VAT Returns Filed (every return up to the de-registration date submitted)
- Administrative Penalties Cleared (any fines paid before the FTA grants approval)
Common Questions
VAT registration questions,answeredclearly.
Everything you need to know about registering, filing and de-registering for VAT in the UAE.
What is the VAT registration threshold in the UAE?
Businesses with taxable turnover above AED 375,000 in the past 12 months (or expected in the next 30 days) must register for VAT with the Federal Tax Authority. Businesses above AED 187,500 can register voluntarily.
What is a TRN and why do I need one?
A Tax Registration Number (TRN) is issued once your VAT registration is approved. You need it to file VAT returns, issue compliant tax invoices, and claim refunds on VAT paid for business-related goods or services.
Do Freezone companies need to register for VAT?
Most Freezone companies register for VAT like any other UAE business. Only companies operating in a Cabinet Decision-listed Designated Zone get special treatment on certain supplies of goods — services always follow normal UAE VAT rules.
Does VAT apply to offshore companies in the UAE?
Offshore companies are non-resident and don't trade within the UAE, so they fall outside UAE VAT law. The only exception is VAT charged on your Registered Agent's incorporation and annual maintenance fees.
When do I need to de-register for VAT?
You must de-register within 20 working days if your annual turnover falls below AED 187,500, you stop making taxable supplies, your expenses drop below AED 375,000, 12 months have passed since voluntary registration, or your company is being liquidated.
What happens if I miss the VAT de-registration deadline?
Delaying your de-registration application beyond the 20-working-day window attracts administrative penalties from the Federal Tax Authority — clearing any outstanding taxes and returns is required before de-registration is approved.
What Our Clients Say
Get Started
Ready to Register for VAT?
Talk to a VAT specialist about your registration or de-registration.
Aurion handles your VAT registration end-to-end — threshold assessment, documentation, TRN application, and ongoing return filing. If you're closing up instead, we manage your de-registration and FTA clearance too.