If you’re a foreign company supplying goods or services in the UAE, VAT registration may not be optional. Even without a physical office in the country, your business could fall under the UAE’s tax jurisdiction depending on the nature and volume of your transactions.
Unlike UAE-resident businesses, foreign companies may be required to register for VAT depending on the nature of their supplies and whether a UAE customer accounts for the tax under the reverse charge mechanism. If no such mechanism applies, the responsibility to charge, report, and remit VAT can fall directly on the foreign company, regardless of turnover thresholds that apply to local businesses.
What is a foreign company?
A company that doesn’t have an official residence in the UAE but engages in consulting, providing services, or selling products in the country is a foreign company. It becomes compulsorily or voluntarily liable for VAT.
When should a foreign company register for VAT?
If your company’s taxable supplies inside the UAE happen to be valued above 375,000 AED in the previous 12-month period, then VAT registration is compulsory. This holds true, even when the business hasn’t reached this threshold, but is projected to cross it in the next 30 days.
Other businesses that are currently operating with taxable supplies above 1,87,500 AED can voluntarily proceed with their VAT registration. The system encourages this as businesses can recover input VAT on costs later.
You should continuously monitor your company’s turnover against these threshold numbers, as missing registration deadlines can result in hefty fines and penalties.
Steps for the VAT registration process
If your foreign company needs to register for VAT in the UAE, the entire application is completed online through EmaraTax, the Federal Tax Authority’s (FTA) official tax portal. Here’s how to do it step by step.
- Gather the required documents
Before you begin the online application, keep your key business documents ready. Commonly required documents include:
- Trade/commercial licence (if applicable)
- Certificate of incorporation
- Memorandum of Association (if applicable)
- Passport of the authorised signatory
- Emirates ID of the authorised signatory (if available)
- Proof of business address
- Bank account details (including IBAN)
- Documents supporting historical turnover (if applicable)
- Prepare key business details
Along with documents, you will need to enter business information during registration, such as:
- Company turnover (and/or supporting figures)
- Details of expected taxable supplies in the UAE
- Bank account details
- Whether you are registering under mandatory or voluntary VAT registration
- Create an EmaraTax account
Go to the EmaraTax portal and create an account for your business. Once you set up your profile, you will be able to access VAT services from the dashboard.
- Complete the VAT registration application
From the dashboard, choose the VAT registration option and fill out the online form carefully. Upload the relevant documents and enter the business details accurately, as this is what the FTA uses to assess your application.
- Submit the application and wait for review
After submission, the Federal Tax Authority (FTA) will review the application and supporting documents. If any details are missing or unclear, you may be asked for additional information.
- Receive your TRN and VAT certificate
Once approved, the FTA will issue your Tax Registration Number (TRN), and a digital VAT registration certificate.
- Store records and stay compliant
After registration, keep digital copies of all submitted documents, along with your TRN and VAT certificate. Maintaining organised VAT records also helps with timely filing and meeting FTA audit expectations. Using business management software can make document storage and VAT record-keeping easier.
For foreign companies entering the UAE market, understanding VAT obligations is a critical part of doing business compliantly. While tax regulations in a new jurisdiction may initially seem complex, the UAE’s VAT registration process is clearly defined and fully digital, making it manageable with proper preparation.
By determining whether registration is required, organising the necessary documentation, and completing the application accurately through the EmaraTax portal, foreign businesses can ensure smooth entry into the UAE’s tax system. Staying informed and proactive not only helps avoid penalties but also supports long-term operational stability in the region.
