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VAT in UAE Register, File & Stay 100% Compliant

From VAT registration and TRN issuance to return filing and compliance, Setupzo handles your UAE VAT end-to-end so you avoid penalties and stay fully legal.

Register for VAT

About Setupzo Who We Are

Setupzo is a UAE-based business consultancy specializing in company formation, VAT registration, and corporate compliance. Our mission is to make starting and running a business in Dubai and across the UAE simple, fast, and hassle-free.
With a team of experienced professionals and a client first approach, we guide entrepreneurs and companies through every step from licensing and VAT registration to long term growth support. At Setupzo, we don’t just set up businesses; we build lasting partnerships for success.
Our services include:
• VAT Registration & TRN issuance
• VAT Return Filing (quarterly/monthly)
• VAT Audit & Compliance support
• Record-keeping & Advisory
At Setupzo, we don’t just set up businesses; we build lasting partnerships for success.

VAT in UAE (United Arab Emirates)

If you run a business in Dubai or anywhere in the UAE, understanding VAT in UAE is essential for compliance and growth. Introduced in 2018, VAT (Value Added Tax) impacts nearly all businesses, and proper registration ensures you remain compliant with Federal Tax Authority (FTA) regulations. VAT compliance is essential for avoiding penalties and building trust with customers.
At Setupzo, we help you register for VAT in UAE, manage your returns, and avoid penalties, making your business journey smooth and hassle-free. Our team also helps you register quickly with the Federal Tax Authority (FTA), manage VAT filings, and stay compliant so you can focus on growing your business with confidence.

Apply Online For VAT Service in UAE

What is VAT in UAE & Why Does It Matter?

VAT is a consumption tax charged on goods and services at each stage of the supply chain. Although businesses collect VAT, the final consumer ultimately bears the cost. VAT is 5%, introduced in 2018. For UAE businesses, VAT compliance builds trust, avoids penalties, and allows input tax recovery.

UAE VAT Percentage & Types of VAT

  • Standard Rate (5%)

    The majority of goods and services are subject to 5% VAT. Examples include:
    • Retail purchases
    • Professional services
    • Most commercial activities

  • Zero-Rated Supplies (0%)

    Taxable supplies are charged at 0%, meaning businesses can reclaim input VAT. Examples include:
    • Exports outside the GCC
    • International transport services
    • Certain healthcare and education services
    • First supply of residential property (under conditions)

  • Exempt Supplies

    Exempt goods/services are outside VAT, and businesses cannot reclaim input VAT. Common exempt categories include:
    • Financial services (certain transactions)
    • Local passenger transport
    • Sale/lease of some residential properties
    This breakdown highlights the types of VAT in the UAE and their impact on business operations.

VAT in UAE Key Facts

• Introduced: 1 January 2018
• Authority: Federal Tax Authority (FTA)
• Standard Rate: 5%
• Applicability: Most goods and services are supplied in UAE
• Scope: Applies to mainland and many free zone businesses

Who Must Register for VAT in UAE?

Mandatory Registration

Mandatory Registration
Businesses must register for VAT in the UAE if:
• Taxable supplies and imports exceeded AED 375,000 in the last 12 months, or
• Likely to exceed AED 375,000 in the upcoming 30-day period.

Voluntary Registration

Businesses may voluntarily register if:
• Taxable supplies or imports exceed AED 187,500 annually.
• Expenses exceed AED 187,500 (helpful for startups wanting to reclaim input VAT).

Non Resident Businesses

Non-resident businesses making taxable supplies in the UAE must register regardless of turnover thresholds.

How to Get VAT in UAE Registration Steps

Documents Required
• Valid Trade License
• Passport/Emirates ID of owners
• Business contact details
• Bank account details
• Financial records and turnover forecast

Registration via FTA Portal

Contact Setupzo right now for VAT registration according to FTA.
TRN Issuance
Once approved, the Federal Tax Authority issues a Tax Registration Number (TRN), confirming your VAT registration.

VAT Compliance & Obligations

VAT Returns
• Filed quarterly (or monthly for some businesses)
• Deadline: 28 days after the tax period ends
Input Tax Recovery & Refunds
Businesses can claim VAT paid on eligible expenses related to taxable supplies. The FTA can refund surplus input VAT.

VAT Invoices & Records

Invoices must include:
• Supplier & customer details
• TRN
• Description of goods/services
• VAT amount and total price
Businesses must retain financial records for at least 5 years.
Penalties
Failure to register, file returns, or issue correct invoices can result in significant fines. Late registration fines can start at AED 10,000, while late filing penalties increase with delays.
To avoid penalties, contact Setupzo right now for a smooth process and end-to-end support.

Why Choose Setupzo for VAT Services in UAE?

At Setupzo, we simplify UAE VAT by:

  • Handling registration and TRN issuance
  • Managing VAT returns and compliance
  • Advising on VAT in Dubai free zones
  • Offering end-to-end business setup solutions

With our expert guidance, your business stays compliant while you focus on growth.
Ready to register for VAT in UAE? Setupzo can help you with VAT registration, filing, and compliance. Contact us today to streamline your VAT process and grow your business confidently.

VAT in Dubai Special Considerations

1. Dubai Free Zones

Dubai hosts multiple designated free zones with special VAT rules. Supplies of goods between these zones may be treated differently from mainland transactions.

2. Supplies Between Mainland & Free Zones

• Supplies from mainland to free zone: usually subject to VAT
• Supplies within designated zones: may be treated as out of scope if specific conditions are met

3. Local Example

A company in Dubai Mainland selling to a customer in a free zone must generally charge 5% VAT, unless conditions for exemption apply.

Benefits & Challenges of VAT Registration

Benefits

• Legal compliance with UAE laws
• Ability to reclaim input VAT
• Improved credibility with partners and clients

Challenges

• Detailed record-keeping
• Regular VAT return filings
• Risk of penalties for non-compliance
This is why many businesses choose Setupzo for VAT support.

Frequently Asked Questions (FAQs)

To register for UAE VAT, contact Setupzo for all support. Our process involves creating an account, completing the VAT registration form, and uploading required documents such as your trade license, passport/Emirates ID, bank details, and financial records. Once approved, the FTA issues a Tax Registration Number (TRN) confirming your VAT registration.

To compute VAT in UAE, you apply the 5% VAT rate to the taxable value of goods or services. The basic formula is:
VAT Amount = (Price of goods or services × 5%).
For example, if a product costs AED 1,000, the VAT will be AED 50, making the total price AED 1,050.

Calculating VAT involves two parts:
• Output VAT – VAT you charge customers on sales.
• Input VAT: VAT you pay on business purchases.
Your net VAT payable is calculated as:
Net VAT = Output VAT – Input VAT.
• If Output VAT > Input VAT → you pay the difference to FTA.
• If Input VAT > Output VAT → you can request a VAT refund.

The standard UAE VAT percentage is 5%, with some supplies taxed at 0% or exempt.

You must register if your taxable turnover exceeds AED 375,000 annually. Voluntary registration is available above AED 187,500.

VAT is federal across the UAE, but some Dubai free zones have special VAT treatment for goods.

Failure to register may lead to fines starting at AED 10,000, plus additional penalties for non compliance.

Registered businesses can claim input VAT refunds when eligible expenses exceed VAT collected.