VAT and Corporate Tax Registration in the UAE: A Complete Guide

Taxation in the United Arab Emirates (UAE) has a central role in regulating business and economic activity. Among the most important compliance procedures for companies is registration for Value Added Tax (VAT) and Corporate Income Tax.

VAT was introduced in the UAE on January 1, 2018, at a rates of 5% and 0%, making it one of the lowest globally. As of 2023, corporate income tax is levied at 9% on profits exceeding AED 375,000 as the standard rate and at 0% rate on the qualifying profit of freezone entities.

Small Business Relief

Until the end of 2026, all small businesses with a cumulative turnover of less than AED 3 million for the financial years from 01/01/2024 to 31/12/2026 are not required to pay Corporate Income Tax at either the 9% or 0% rate.

Why Registration Matters

Compliance with VAT and Сorporate tax laws requires thorough preparation and accurate financial reporting. Companies must submit correct and timely tax returns to avoid fines, penalties, and administrative sanctions.

How to Register

The registration process includes:

1. Submitting an application via the Federal Tax Authority (FTA) online portal.
2. Uploading the required documentation, including:
   • Trade license
   • Certificate of incorporation (for legal entities)
   • Trade Licenses and Shareholders/Managers data (passports, EIDs, Incorporations Cettificates etc.)
   • MOA.

Importance of Accurate Recordkeeping

To ensure compliance, companies must maintain detailed accounting records and submit tax returns on time. Failure to do so may result in:

• AED 10,000 fine for missed VAT registration deadlines
• AED 1,000 – 50,000 fines for late returns, inaccurate statements, unpaid taxes and not providing the required data etc. as for the UAE VAT and CIT regulations

Final Thoughts

Registering for VAT and corporate tax in the UAE is not just a legal formality—it is a strategic requirement for operating sustainably in a modern, transparent economic environment. A structured approach and adherence to tax law ensure legal certainty and operational continuity in one of the world’s most business-friendly jurisdictions.