VAT Registration in Dubai: Thresholds, Deadlines & How to Register

VAT has been part of doing business in the UAE since 2018, at a standard rate of 5%. Whether you're a new company or growing fast, knowing when and how to register keeps you on the right side of the FTA.

When is VAT registration mandatory?

VAT registration becomes mandatory once your taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to in the next 30 days. Registering late is one of the most common — and most avoidable — compliance mistakes.

What about voluntary registration?

You can register voluntarily once your taxable supplies or expenses exceed AED 187,500. For many startups this is worthwhile — it lets you recover input VAT on your costs and signals credibility to larger clients.

How often do I file VAT returns?

Most businesses file quarterly, though the FTA assigns some businesses monthly periods. Returns and any payment are generally due within 28 days of the end of each tax period. Missing this window triggers penalties.

What you need to register

• Trade licence and Emirates ID / passport of the owner(s)
• Company contact and bank details
• Turnover figures and supporting financials
• Customs registration details, if you import or export

Common VAT mistakes to avoid

• Registering late once you cross the threshold
• Charging the wrong VAT treatment on exports or zero-rated supplies
• Missing the 28-day filing window
• Poor record-keeping that can't support your return

Getting it right the first time

VAT is straightforward when it's set up correctly and managed consistently — and expensive when it isn't. If you're unsure whether you've crossed the threshold, or you want your returns handled end to end, a quick consultation can save a lot of stress at filing time.

This article is general guidance based on current UAE tax regulations and is not a substitute for professional advice. Contact Hudson & Nova for advice specific to your business.

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