UAE VAT Registration & Filing 2026: Thresholds, Deadlines & Penalties

VAT is a 5% tax on goods and services, in force in the UAE since 1 January 2018. Two things catch businesses out: the moment your taxable revenue crosses AED 375,000, a 30-day registration clock starts — and once registered, you owe a return every quarter, on time, forever. VAT registration is separate from Corporate Tax — you may need both.

Key Facts

Authority: Federal Tax Authority (FTA), via the EmaraTax portal
Rate: 5% standard
Mandatory registration: taxable supplies/imports over AED 375,000 in the past 12 months (or expected in the next 30 days)
Voluntary registration: available once supplies or expenses exceed AED 187,500
Registration deadline: within 30 days of crossing the mandatory threshold
Filing: quarterly for most businesses (monthly for larger ones, as assigned by the FTA)

The Threshold Is a Trigger Most People Miss

Nobody sends you a reminder when your revenue crosses AED 375,000 — but the 30-day registration clock starts that day, and missing it is a AED 10,000 fine. This is one of the silent obligations: it's tied to your revenue, not a renewal date, so it's easy to blow past while you're busy running the business. If you're trading near the threshold, watch your trailing-12-month revenue closely.

Quarterly Filing Calendar

Returns are due on the 28th of the month after each quarter ends:

| Quarter | Period | Filing & payment deadline | |---------|--------|---------------------------| | Q1 | Jan – Mar | 28 April | | Q2 | Apr – Jun | 28 July | | Q3 | Jul – Sep | 28 October | | Q4 | Oct – Dec | 28 January |

The deadline is the 28th, not the end of the quarter. Both the return (Form 201) and the payment must be in by then.

What You Need to Register

Trade license copy
Bank account details (IBAN)
Financial statements or projected revenue
Passport + Emirates ID of partners/shareholders
Memorandum of Association

Step-by-Step

Register:

Log into EmaraTax (tax.gov.ae) with UAE PASS.
Complete the VAT registration form (company details, revenue, bank info, trade license) — ~30–45 min.
Submit; the FTA issues your TRN (Tax Registration Number), typically in 5–15 business days.

File each quarter: 4. Calculate output VAT (on sales) minus input VAT (on purchases) = what you owe (or are owed). 5. File Form 201 via EmaraTax and verify the figures. 6. Pay any VAT due through the FTA gateway before the deadline.

Penalties (2026 — Cabinet Decision 129/2025)

| Violation | Penalty | |-----------|---------| | Late registration | AED 10,000 | | Late filing — first offence | AED 1,000 | | Late filing — repeat within 24 months | AED 2,000 | | Late payment | 14% per annum, calculated monthly on the outstanding balance (no ceiling) | | Incorrect return | AED 500 per error | | Voluntary disclosure before an FTA audit notice | 1% of unpaid tax per month | | Voluntary disclosure after an audit notice | + 15% one-time surcharge (on top of the 1%/month) | | Failure to keep required records | AED 5,000 – 20,000 |

What changed in 2026: Cabinet Decision 129/2025 (effective 14 April 2026) replaced the old CD 108/2021 regime — harmonising late-payment penalties to a single 14% per annum rate across VAT, Corporate Tax, and Excise, and reducing incorrect-return and voluntary-disclosure penalties to encourage self-correction. Practical takeaway: if you find an error, file a voluntary disclosure on EmaraTax before the FTA notifies you of an audit — that avoids the 15% surcharge.

Common Mistakes

Not registering when you cross AED 375,000 — the 30-day clock starts the day you exceed it, not next financial year.
Confusing VAT with Corporate Tax — separate registrations: VAT is 5% on sales, CT is 9% on profits.
Forgetting to charge VAT after getting your TRN — if you don't collect it, you still owe the FTA out of pocket.
Treating the quarter-end as the deadline — it's the 28th of the following month.
Reclaiming input VAT on personal expenses — only business purchases qualify.

How Dembri Helps

Dembri tracks your VAT registration status and every quarterly filing deadline, with reminders well ahead by email and WhatsApp — and flags the registration trigger if your tracked revenue approaches the threshold. For PRO firms, the dashboard shows each client's TRN, filing status, and upcoming deadlines in one place, alongside their CT and license renewals.

Start your free trial → · Apply for founding membership →

Frequently Asked Questions

What if I cross AED 375,000 mid-year? Register within 30 days of crossing it — don't wait for the next financial year.

Is registration free? Yes, VAT registration on EmaraTax is free. The costs are the penalties for missing deadlines.

What if I miss a filing deadline? AED 1,000 for the first late filing, AED 2,000 for a repeat within 24 months, plus 14% per annum on any unpaid VAT.

Can I register voluntarily below the threshold? Yes — once supplies or expenses exceed AED 187,500. Useful if you want to recover input VAT on purchases.

Do I need an accountant? Not legally, but most SMEs use one for the first year — incorrect-return errors cost AED 500 each, and reconciling ledgers is where mistakes happen.

Is VAT the same as Corporate Tax? No — separate taxes, separate registrations. You may need both. See the Corporate Tax guide.

Sources: Federal Tax Authority — EmaraTax · Federal Decree-Law 8/2017 (VAT Law) · Cabinet Decision 129/2025 (administrative penalties, effective 14 April 2026).

Last verified: 4 June 2026 · The 5% rate, AED 375,000 mandatory / AED 187,500 voluntary thresholds, 30-day registration window, and quarterly 28th-of-month filing deadlines are FTA-canonical. The 2026 penalty schedule reflects Cabinet Decision 129/2025 (effective 14 April 2026); the 14% p.a. late-payment rate is consistent with the same decision verified for Corporate Tax. The 15% post-audit voluntary-disclosure surcharge is sourced from major tax-advisory summaries (PwC, Andersen, A&M, DLA Piper) of CD 129/2025, pending confirmation against the primary FTA penalty schedule. Confirm specifics with the FTA or your tax adviser before relying on them.