VAT reporting in the UAE — useful tips

The introduction of value added tax (VAT) in the United Arab Emirates has made regular VAT reporting a key responsibility for companies operating locally. Since January 2018, all businesses crossing the mandatory revenue threshold are required to register for VAT, charge it on taxable supplies, and submit periodic VAT returns online. The UAE has designed its VAT framework to be straightforward, user-friendly, and supportive of business growth.

Ensuring timely and accurate VAT reporting not only keeps your business compliant but also helps you avoid unnecessary administrative burdens. Whether you are managing a mainland company registration in the UAE or overseeing ongoing operations, understanding the main requirements will simplify the process and support your long-term success.

Who needs to register for VAT in the UAE?

VAT registration is mandatory for businesses whose taxable supplies and imports exceed the registration threshold, currently set at AED 375,000 per annum. Businesses with taxable turnover above AED 187,500 per annum can choose to register voluntarily. Non-resident businesses that make supplies in the UAE may also be required to register, particularly if they sell digital products to consumers.

How to register for VAT

Registration is conducted through the Federal Tax Authority (FTA) portal, accessible at eservices.tax.gov.ae. The process requires submitting company details, trade licenses, financial information, and supporting documents. For many, the registration can be completed quickly if you have your legal and accounting documents ready.

Some main steps include:

• Creating an FTA online account
• Filling out the electronic registration form
• Uploading required documentation (e.g., trade license, passport copies, proof of address)
• Receiving your VAT registration number (“TRN”) once approved

Registering promptly ensures you can start collecting and reclaiming VAT without delay and demonstrates your commitment to compliance.

VAT reporting periods and deadlines

The standard tax period in the UAE is quarterly (three calendar months) for companies with annual turnover below AED 150 million and monthly for those at or above this threshold. The FTA assigns the tax period for each business.

Businesses must submit their VAT return and pay any VAT owed within 28 days of the end of each tax period. If this deadline falls on a weekend or public holiday, the due date is moved to the next working day. Remaining aware of these dates avoids any missed filings or payments.

Preparing and submitting your VAT return

VAT returns are submitted electronically through the FTA’s portal. The return summarizes all taxable sales and purchases, including:

• Standard-rated supplies (reported by each emirate, e.g. Dubai, Abu Dhabi)
• Zero-rated and exempt supplies
• Imported goods and services (where the reverse charge applies)
• Any necessary adjustments, such as bad debt relief or corrections from previous periods

To prepare your VAT return:

• Gather all invoices for sales and purchases
• Ensure accurate segregation of sales by emirate, based on the place of supply rather than only the billing address
• Apply the current UAE VAT rate (usually 5%) to taxable supplies
• Convert foreign currency transactions using the official rate from the UAE Central Bank
• Verify input tax invoices for compliance before claiming credits

By keeping your records up to date, VAT returns can be filed swiftly and with confidence.

Recordkeeping requirements

The UAE’s VAT legislation requires all registered businesses to keep relevant financial and VAT records for at least five years (or 15 years for real estate activities). These records include:

• Tax invoices issued and received
• Credit and debit notes
• VAT calculation workpapers
• Proof of exports, such as customs documents
• Details of input VAT not claimed

Maintaining these records demonstrates transparency during audits and simplifies any later amendments or investigations.