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VAT

VAT Registration

Registered Tax Agent — Regulated by the FTA

VAT registration in the UAE is a mandatory tax requirement for eligible businesses operating in the country. Whether you are a startup, SME, or large company, registering correctly keeps you compliant with UAE tax regulations and helps you avoid penalties.

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TAN 30000939TAAN 20011987
VAT Registration — Capella Tax Consultancy
FTA Approved
VAT
8+Years of Expertise
3,500+Clients Served
35,000+VAT Filings
4.9/5Client Rating

What is VAT Registration in the UAE?

VAT (Value Added Tax) registration is the process of enrolling a business with the UAE tax authority to collect and report VAT on taxable goods and services. VAT in the UAE is regulated by the Federal Tax Authority (FTA).

Once registered, a business receives a Tax Registration Number (TRN) and becomes legally responsible for charging and reporting VAT.

At a glance
  • Regulated by the Federal Tax Authority (FTA)
  • Issues a Tax Registration Number (TRN)
  • Makes the business responsible for charging and reporting VAT

VAT Rates in the UAE

The standard VAT rate in the UAE is 5%, applied to most goods and services. Certain goods and services may be zero-rated or exempt as per UAE VAT Law.

Standard rateDefault rate on most goods and services supplied in the UAE
5%
Zero-rated (0%)Exports outside the GCC, international transport, qualifying healthcare and education, first supply of new residential property, investment-grade precious metals
0%
ExemptResidential property rentals, bare land, local passenger transport, and margin-based financial services, no input VAT recovery
No VAT

Who Needs to Register for VAT in the UAE?

Mandatory registration applies when annual taxable turnover exceeds AED 375,000. Voluntary registration is available when annual taxable turnover exceeds AED 187,500.

  • Mandatory: taxable turnover above AED 375,000
  • Voluntary: taxable turnover above AED 187,500
  • Mainland companies
  • Free Zone businesses (subject to conditions)
  • Sole proprietors and freelancers (if the threshold is met)

Documents Required for VAT Registration

To complete VAT registration smoothly, businesses should prepare the following documents in advance.

  • Valid trade license
  • Passport and Emirates ID copies of owners
  • Company incorporation documents
  • Bank account details
  • Estimated turnover and financial records

Why Choose Capella for VAT Registration

Capella Tax Consultancy provides reliable and professional tax services in the UAE, ensuring your business stays fully compliant. As an FTA registered tax agent with the Federal Tax Authority, we offer expert support in VAT registration, filing, and compliance.

  • Accurate VAT registration and filing
  • Expert guidance on UAE tax laws
  • Risk-free compliance and audit support
  • Customized solutions for all business types
Why Capella

Why choose Capella

FTA registered tax agent with the Federal Tax Authority
Accurate VAT registration and timely filing
Expert guidance on UAE tax laws
Risk-free compliance with audit support
Customized solutions for all business types
How It Works

Your VAT registration, handled end to end

01
Step 1

Eligibility & threshold check

We assess your taxable supplies and imports against the AED 375,000 mandatory and AED 187,500 voluntary thresholds to confirm whether you must, or should, register, and set the correct effective date.

02
Step 2

Prepare your documents

We compile and review your trade licence, Emirates ID and passport copies, MOA, bank details and turnover evidence, so your application is complete and audit-ready before it reaches the FTA.

03
Step 3

Submit on EmaraTax

As an FTA-registered tax agent, we file your application directly through the EmaraTax portal, classify your activities correctly, and respond to any FTA clarification requests on your behalf.

04
Step 4

TRN issued

Once approved, the FTA issues your Tax Registration Number (TRN). We hand over your VAT certificate and brief you on invoicing, return periods and your first filing deadline.

Free VAT calculator

UAE VAT Calculator 2026 — Free Instant Estimate

Instant estimate based on UAE VAT Law. Your actual liability is confirmed by our team during filing.

Net VAT payableAED 0
Output VAT (5%)AED 0
Input VAT (5%)AED 0

Below the voluntary registration threshold.

Get an exact quoteAsk an expert

Estimate only — not tax advice. Reliefs, exemptions and adjustments may change the final figure.

Penalties

What non-compliance costs you

ViolationPenaltyHow Capella helps
Failure to register for VAT within 30 days of exceeding the AED 375,000 mandatory thresholdAED 10,000 fixed penalty (Cabinet Decision No. 49 of 2021)We monitor your rolling 12-month turnover and 30-day forecast, then register you on EmaraTax before the deadline so the fixed penalty never applies.
Late submission of a VAT return after registrationAED 1,000 for the first offence; AED 2,000 if repeated within 24 monthsWe track every tax period and file your returns ahead of the deadline, with reminders so a filing date is never missed.
Late payment of VAT due to the FTA2% of unpaid tax immediately, plus 4% monthly thereafter, up to a maximum of 300%We calculate your net VAT liability early and flag the payment deadline so settlement clears before penalties begin to accrue.
Submitting an incorrect VAT return or failing to correct an error via voluntary disclosureAED 1,000 / AED 2,000 fixed penalty, plus a 5% voluntary disclosure penalty on the tax differenceWe reconcile your figures before filing and, where an error exists, prepare a timely voluntary disclosure to minimise the percentage-based penalty.
The Capella difference

Numbers that speak for us

900+

Businesses served

VAT registrations and filings across the UAE

100%

FTA-registered agent

Applications filed directly on EmaraTax

72h

Fast turnaround

From documents ready to FTA submission

4.9/5

Client rating

Trusted for accuracy and responsiveness

How we compare

Why businesses choose Capella

Generic agentsBig-4 / premiumCapella
FTA-registered tax agentOften not Yes Yes
Dedicated account managerVariesTeam-based Yes
Direct WhatsApp access No No Yes
Transparent fixed-fee packagesVariesHigh retainersFrom AED 299/mo
SME & startup focusVariesEnterprise-focused Yes
Accounting, tax & audit under one roofRarely Yes Yes
Local UAE / FTA expertiseVaries Yes Yes
FTA Approved

An FTA-registered & approved tax agency in the UAE.

Tax Agent (TAN): 30000939  |  TAAN: 20011987

Capella Tax Consultancy L.L.C is an FTA-approved Tax Agent in the UAE, helping businesses stay compliant with tax regulations. We provide VAT registration, VAT return filing, tax advisory, compliance reviews, and corporate tax services across all seven Emirates.

DubaiAbu DhabiSharjahAjmanAll UAE
Capella FTA tax agent certificate
FTA Registered Tax Agent
FAQ

Frequently asked questions

Registration is mandatory if your taxable supplies and imports exceeded AED 375,000 in the past 12 months or are expected to exceed it within the next 30 days. Businesses with taxable supplies or expenses above AED 187,500 may register voluntarily.

You must apply to the Federal Tax Authority within 30 days of becoming liable to register. Missing this deadline triggers a fixed administrative penalty of AED 10,000, plus VAT liability backdated to when you should have registered.

You typically need your trade licence, the passport and Emirates ID of the owner/authorised signatory, the Memorandum of Association, bank account details (IBAN), and proof of turnover such as financial statements or invoices. Requirements can vary by business structure, so we confirm the exact list for your case.

Registration is completed entirely online through the FTA's EmaraTax portal, with no hard-copy paperwork. Once a complete application is submitted, the FTA generally issues the Tax Registration Number (TRN) within about 5 to 20 business days.

The standard VAT rate is 5%, charged on most goods and services, while certain supplies are zero-rated or exempt. After registration you must charge VAT, file periodic returns, and keep proper records for at least 5 years.

Testimonials

What clients say about Capella.

Capella has been a game-changer for our business. Their team is knowledgeable, responsive, and always ensures we stay compliant.

SME
SME ownerDubai

Professional, proactive, and always available when we need them. They handle our accounting, VAT, and corporate tax with complete accuracy.

TC
Trading companySharjah

Their insights go beyond compliance. Capella helps us understand our numbers better and make smarter financial decisions.

FN
FounderAbu Dhabi
Let's talk

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Partner with Capella for hassle-free, fully compliant VAT registration in Dubai and across the UAE.

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