Register Correctly. Stay Compliant. Avoid Penalties from Day One.
Value Added Tax (VAT) in the UAE is a 5% consumption tax applied to most goods and services.
Businesses are required to assess their revenue and register with the Federal Tax Authority (FTA) based on defined thresholds.
VAT is not optional once you cross the limit and incorrect registration can lead to significant penalties and compliance issues.
UAE VAT Thresholds (Official)
Under UAE law
Category | Revenue Threshold |
|---|---|
Mandatory Registration | AED 375,000 |
Voluntary Registration | AED 187,500 |
Businesses must register if
Taxable supplies exceed AED 375,000 in the last 12 months,
Expected to exceed this threshold in the next 30 days
(Source: Federal Tax Authority - UAE)
Mandatory vs Voluntary VAT Registration
Understanding this correctly is critical.
Area | Mandatory VAT | Voluntary VAT |
|---|---|---|
Revenue | Above AED 375,000 | Above AED 187,500 |
Requirement | Compulsory | Optional |
Risk of Non-Compliance | High (penalties apply) | None |
Benefit | Legal compliance | Input VAT recovery |
Ideal For | Growing / active businesses | Early-stage / scaling |
Why VAT Registration Matters
VAT is not just a tax, it directly affects
Your cash
flow
Your pricing
structure
Your ability to
reclaim input VAT
Your credibility with partners and clients
Incorrect handling leads to:
Penalties starting from AED 10,000 for late registration
Fines for incorrect
filings
Increased scrutiny from authorities
What This Service Covers
VAT Registration with Federal Tax Authority
VAT Certificate
issuance
Eligibility assessment (mandatory vs voluntary)
Documentation review and submission
FTA profile
setup
Who This Is Designed For
Businesses crossing AED 375,000 revenue
Companies planning to scale operations
Businesses with high input costs (wanting VAT recovery)
Founders unsure about compliance requirements
How It Works
Submit required
documents
VAT Registration
Declaration Letter of VAT Turnover Duly Signed and Stamped on Entity’s Letterhead
Sales Invoices/Contracts for Turnover/Purchase Order Signed and Stamped
Authorised Signatory Emirates ID and full name(as per passport)
Emirates ID and Passport for all Shareholders above 25% Share Capital
Payment
Setup guides. Can’t decide? Start here.
Questions? Answers.
Is VAT registration mandatory in the UAE?
Yes, if your taxable revenue exceeds AED 375,000.
Can I register voluntarily?
Yes, if your revenue exceeds AED 187,500.
How long does VAT registration take?
Typically up to 20 business days, depending on FTA review.
What happens if I don’t register on time?
To obtain a company stamp, log in to the Meydan Free Zone customer portal and navigate to Meydan+, where you can select the Company Stamp service. During the process, you’ll be asked to confirm the required details and select the number of stamps needed.
Once your selection is complete, proceed to payment through the portal. After payment is confirmed, your company stamp is processed and prepared for delivery.
What is included in the VAT Registration service at Meydan Free Zone?
The VAT Registration service at Meydan Free Zone includes initiating your application directly with the Federal Tax Authority (FTA) and procuring your official VAT certificate. This one-time service ensures your business is legally set up to collect and account for the 5% VAT levied on applicable goods and services.