VAT Registration in the UAE
Value Added Tax (VAT) registration in the UAE is a legal requirement for businesses whose taxable supplies and imports exceed AED 375,000 annually, or are expected to exceed this threshold in the next 30 days.
Businesses can also opt for voluntary registration if their turnover or taxable expenses exceed AED 187,500.
Once registered with the Federal Tax Authority (FTA), a business obtains a Tax Registration Number (TRN) and becomes a “taxable person.” This allows the business to charge VAT on taxable goods and services, collect VAT from customers, and claim input VAT on its business-related purchases.
Key Features & Benefits
Standard VAT rate in the UAE is 5% on most goods and services.
Zero-rated supplies (e.g. exports, international transport, certain healthcare and education services) are taxed at 0%, allowing input VAT recovery.
Exempt supplies (such as certain financial services, local passenger transport, residential real estate) are outside the scope—no VAT charged, and no input VAT recovery.
