VAT and Corporate Tax registration in the UAE : steps, documents and penalties

With the introduction of VAT (2018) and Corporate Tax (CT) (FYs starting in 2023), tax registration is now mandatory for most UAE businesses. This guide sets out when to register, what documents to prepare, how to complete registration on EmaraTax, and which penalties to avoid.

Thresholds and scope

VAT (5%)

• Mandatory: if total taxable supplies/imports exceed AED375,000 over 12 months (or are expected to do so within the next 30 days).
• Voluntary: between AED187,500 and AED 375,000 or where expenses exceed AED 187,500 (useful to recover input VAT).

Corporate Tax (CT)

• CT registration is required for businesses (mainland and free zones), even if taxable profit is below AED 375,000 (0% band).
• Rates: 0% up to AED 375,000 of taxable profit; 9% above that (special regimes for qualifying freezone persons).

Documentation

For VAT

• Valid trade licence; bank details (IBAN), full address/PO Box;
• IDs (passports/Emirates IDs) for owners/managers; MOA;
• Turnover declaration for the last 12 months (signed/stamped); supporting items (customs letter, financials) depending on activity.

For Corporate Tax

• Licence, authorisation (POA if an agent acts), IDs for shareholders/managers;
• TRN (if VAT registered), recent financial statements, address proof;
• TRN (if VAT registered), recent financial statements, address proof;

EmaraTax process (VAT and CT)

1. Create/activate your EmaraTax account (eservices.tax.gov.ae).
2. Create/select the taxable person profile.
3. Select VAT Registration or Corporate Tax Registration and complete the forms (activity, thresholds, documents).
4. Submit and track processing (indicative timeline: ~20 business days).
5. Receive your TRN (VAT) and CT registration number; retain acknowledgments.

Post registration compliance

VAT

• Maintain records (sales/purchases, invoices, receipts) and use VAT compliant
• File VAT returns electronically by due dates (FTA calendar); reconcile input VAT eligibility.

CT

• Annual return: file within nine months of yearend; pay by the same deadline.
• Respond promptly to FTA queries (supporting documents, clarifications).
• Deductions: confirm admissible expenses and keep robust evidence.

Penalties to watch

VAT (examples)

• Late VAT registration: AED10,000.
• Late VAT payment: 2% immediately after the deadline; +4% at day 7; then 1% per day from day 30 (capped at 300% of unpaid VAT).
• Late/incorrect VAT returns: AED1,000 (first), AED 2,000 (repeat within 24 months).

Corporate Tax (examples)

• Late CT registration: AED10,000.
• Late CT filing: AED500/month (first year) then AED 1,000/month.

Good practice

• Map your obligations (thresholds, QFZP, calendar) and register early.
• Keep details up to date on EmaraTax (address, partners, licences).
• Automate supporting document collection (invoices, supplier TRNs) and reconciliations.
• Train teams on VAT/CT rules and penalties.

VAT/CT compliance rests on clear thresholds, a unified EmaraTax process and solid record keeping. By anticipating deadlines and securing documentation, businesses can avoid penalties and run a reliable UAE tax framework.

Our expert tax lawyers are available to answer all your questions and provide advice. Our consultations can be held in person or via videoconference. You can make an appointment directly online at www.agn-avocats.fr.