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You have set up a UAE company, or you already own one. When must you register for Corporate Tax?

The answer depends on what type of person you are and when the business was incorporated, established or recognised. For a company that should have registered, this is one of the most expensive administrative deadlines to miss: the Federal Tax Authority (FTA) states that late Corporate Tax registration attracts an administrative penalty of AED 10,000. (FTA Corporate Tax Registration service card, checked 8 October 2026.)

The registration deadline is also separate from the deadline for filing your first Tax Return. A company may have a first Tax Period that lasts longer or shorter than 12 months, so you should identify both clocks before deciding what action is required.

Which Corporate Tax registration clock applies to you?

The main registration timelines are set out in FTA Decision No. 3 of 2024, issued on 22 February 2024 and effective from 1 March 2024. (FTA Decision No. 3 of 2024, checked 8 October 2026.)

Source for the timelines in this table: FTA Decision No. 3 of 2024, checked 8 October 2026.

1. New UAE companies, including Free Zone companies

If your juridical person was incorporated, established or recognised in the UAE on or after 1 March 2024, you must apply for Corporate Tax registration within 3 months from the date of incorporation, establishment or recognition.

This rule expressly includes a Free Zone Person. Being incorporated in a Free Zone does not remove the need to assess Corporate Tax registration. It also does not mean that every Free Zone company automatically receives a particular Corporate Tax treatment.

The relevant date is the date of incorporation, establishment or recognition, not simply the date on which the company began trading. If you are forming a new business, it is sensible to record this date alongside the registration deadline. PJ Advisory’s company formation service can help founders identify the relevant setup documents and authority dates.

2. UAE companies established before 1 March 2024

For resident juridical persons established before 1 March 2024, the deadline was determined by the month in which the licence was issued, regardless of the year in which the licence was issued.

The deadlines were:

• Licence issued in January or February: 31 May 2024
• Licence issued in March or April: 30 June 2024
• Licence issued in May: 31 July 2024
• Licence issued in June: 31 August 2024
• Licence issued in July: 30 September 2024
• Licence issued in August or September: 31 October 2024
• Licence issued in October or November: 30 November 2024
• Licence issued in December: 31 December 2024

If the person had no licence on 1 March 2024, the deadline was 3 months from 1 March 2024. Where a person held more than one licence, the earliest licence issuance date determined the deadline. (FTA Decision No. 3 of 2024, checked 8 October 2026.)

These historical deadlines have passed. If an older UAE company has not yet registered, it should not assume that having no revenue or no active operations removes the obligation. The late-registration position and the available waiver initiative should be reviewed promptly.

3. Foreign-incorporated companies managed and controlled in the UAE

A juridical person incorporated under the laws of another country or foreign jurisdiction may be a Resident Person if it is effectively managed and controlled in the UAE.

For such a person incorporated, established or recognised on or after 1 March 2024, the registration deadline is within 3 months from the end of its Financial Year.

This category can involve questions about management, control, accounting periods and the location of decision-making. Anyone with an unusual cross-border structure should confirm the position with the FTA or a qualified tax adviser rather than applying the UAE-company rule automatically.

4. Non-Resident persons and natural persons

A Non-Resident juridical person with a Permanent Establishment has either a 9-month or 6-month registration period, depending on whether the Permanent Establishment existed before or on or after 1 March 2024.

A Non-Resident juridical person with a nexus in the UAE must generally register within 3 months, with the starting event depending on when the nexus was established.

For natural persons, the rule is different. A Resident Person conducting a business or business activity whose turnover exceeds the applicable threshold must register by 31 March of the subsequent Gregorian calendar year. A Non-Resident natural person must register within 3 months from the date of meeting the requirements of being subject to tax. (FTA Decision No. 3 of 2024, checked 8 October 2026.)

How long is the first Tax Period?

The registration deadline and the first Tax Period are not the same thing.

Under Article 28(1) of the Commercial Companies Law, a company’s first Financial Year begins from its entry in the commercial register and must be not less than 6 months and not more than 18 months. The subsequent Financial Years are 12-month periods.

The FTA accepts that first Financial Year as the company’s first Tax Period. If the first period is between 6 and 18 months, the company does not need to apply to the FTA simply because the first period is not 12 months. (FTA Public Clarification CTP003, PDF, checked 8 October 2026.)

Worked illustration based on the FTA’s examples in CTP003

Illustration: A company is incorporated on 2 January 2024 and uses a Financial Year from 1 April to 31 March.

Under the first-year rule, its first Financial Year runs from 2 January 2024 to 31 March 2025. This is also its first Tax Period. Its subsequent Tax Period runs from 1 April 2025 to 31 March 2026, followed by further 12-month periods.

The key point is that a first Tax Period may be longer than 12 months without requiring the company to apply for a special period.

The FTA also clarifies that Corporate Tax thresholds are not pro-rated when the first Tax Period is longer or shorter than 12 months. The single exception is the AED 12 million de minimis for the General Interest Deduction Limitation Rule, which is adjusted in proportion to the length of the Tax Period. (FTA Public Clarification CTP003, checked 8 October 2026.)

What happens if you register late?

The FTA states that an administrative penalty of AED 10,000 applies for late Corporate Tax registration. (FTA Corporate Tax Registration service card, checked 8 October 2026.)

However, the FTA’s Late Registration Penalty Waiver Initiative may provide relief if its conditions are met.

The penalty can be waived where the person submits:

• The first Tax Return; or
• An annual declaration where an exempt person is required to register,

within 7 months from the end of the first Tax Period.

The FTA states that the waiver is automatic. No separate reconsideration request is needed. It covers people who registered late and were charged the penalty, whether the penalty has been paid or remains unpaid. It can also cover people who have not yet filed the first return and people who have not yet registered, provided they complete the required steps within the initiative’s conditions.

If the penalty has already been paid, the FTA states that the amount is credited back to the person’s tax account. The initiative applies only to the first Tax Period. (FTA late-registration penalty waiver announcement, checked 8 October 2026.)

The waiver should not be treated as an alternative to registering on time. It is important to distinguish the waiver condition from the ordinary filing rule: Tax Returns and Corporate Tax payments are generally due within a period not exceeding 9 months from the end of the Tax Period. The FTA has stated that this filing rule also applies to persons eligible for Small Business Relief. (FTA filing and payment announcement, checked 8 October 2026.)

What do you need before starting the application?

The FTA’s Corporate Tax Registration service is available free of charge through EmaraTax 24 hours a day, 7 days a week.

The FTA estimates that the application takes about 25 minutes to submit and that it will take approximately 20 business days from receipt of a completed application for the FTA to complete its processing. This is an estimate, not a guarantee of approval or completion by a particular deadline. (FTA Corporate Tax Registration service card, checked 8 October 2026.)

The service card lists the following documents:

• Certificate of Incorporation, Memorandum of Association or Partnership Agreement, if available
• Commercial Registration Certificate or another official document issued by the licensing authority
• Valid Trade Licence, including branch licences where applicable
• Emirates ID and passport of any owner holding more than 25% ownership, and of authorised signatories
• Proof of authorisation for the signatory

Preparing these documents before opening the application can reduce avoidable delays. Businesses operating in a Free Zone should also confirm the specific authority documents required for their structure. PJ Advisory’s Free Zones support can help businesses review the setup and licensing context before registration.

What if the company never traded or has already stopped?

A company that never traded may still need to register if it falls within a category requiring Corporate Tax registration. Trading activity is not the only factor.

If the business ceased during its first Tax Period, it must still register for Corporate Tax. It must then submit a Tax Deregistration application within 3 months of the cessation date.

If the business ceased before the first Tax Period began, it does not need to register for Corporate Tax. The expiry of a licence, or not holding a valid licence, does not by itself prove that the business ceased.

The wider liquidation, licence cancellation and tax exit process involves separate steps. For those issues, see PJ Advisory’s guide to closing a business in Dubai. (FTA Public Clarification CTP003, checked 8 October 2026.)

Practical conclusion

To identify your deadline, start with four questions:

1. Is the person a resident or non-resident person?
2. Is it a juridical person or a natural person?
3. When was it incorporated, established, recognised or connected to the UAE?
4. What is the company’s first Financial Year and therefore its first Tax Period?

Do not assume that a Free Zone company, an inactive company or a company with no revenue is automatically outside the registration requirement. Deadlines depend on the category of person and the relevant dates. If your structure involves foreign ownership, multiple licences, a Permanent Establishment, a nexus or effective management in the UAE, confirm the position with the FTA or a qualified tax adviser.

PJ Advisory provides Tax & Accounting support for businesses reviewing Corporate Tax registration, filing and ongoing compliance. You can also contact PJ Advisory to discuss the documents and deadlines relevant to your company.

Sources and references

All sources below were checked on 8 October 2026.

1. FTA Decision No. 3 of 2024 on the Timeline Specified for Registration of Taxable Persons for Corporate Tax, issued 22 February 2024 and effective 1 March 2024. Checked 8 October 2026.
2. FTA: Federal Tax Authority issues new Decision on specified timeframes for Corporate Tax registration, published 27 February 2024 and last updated 28 February 2024. Checked 8 October 2026.
3. FTA Corporate Tax Registration service card, last updated 19 August 2026. Checked 8 October 2026.
4. FTA Public Clarification CTP003: First Tax Period of a juridical person and CTP003 PDF, last updated 30 July 2024. Checked 8 October 2026.
5. FTA: FTA Expects Number of Beneficiaries from Corporate Tax Late Registration Penalty Waiver Initiative to Rise to 91,000, published 14 May 2026 and last updated 15 May 2026. Checked 8 October 2026.
6. FTA: 30 September 2026 is the deadline for filing Tax Returns and paying Corporate Tax for the financial year ended 31 December 2025, published 26 September 2026 and last updated 28 September 2026. Checked 8 October 2026.
7. FTA Corporate Tax Registration service card, which states the AED 10,000 late-registration administrative penalty. Checked 8 October 2026.

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Closing a company in Dubai is not the same as stopping business activity. If you simply stop trading or allow the trade licence to expire, the company may remain active on government, tax, immigration and commercial records.

The UAE Government states that, regardless of the type of business, the owner must cancel the business licence and related permits when deciding to close. Formal cancellation helps avoid fines and penalties connected with non-renewal. The official mainland closure guidance was updated on 6 April 2026.

This guide explains how to close a company in Dubai, including mainland liquidation, free zone deregistration, VAT deregistration, Corporate Tax deregistration, employee and visa exits, and the final commercial clean-up.

What actually counts as closing a business?

Several connected actions are usually involved:

• Licence cancellation: the relevant mainland or free zone authority removes the business licence.
• Liquidation: where required, the company’s assets, liabilities, creditors and final accounts are dealt with through the required process.
• Tax deregistration: VAT and Corporate Tax registrations are closed separately with the Federal Tax Authority.
• Immigration and labour closure: employee work permits, labour contracts, investor visas and dependant visas are cancelled where applicable.
• Commercial closure: bank accounts, leases, telecom services, utilities and customs records are cleared where relevant.

A licence cancellation certificate or free zone de-registration certificate is important evidence of closure, but it does not automatically settle every tax, employment, banking or contractual obligation. Each authority has its own file and requirements.

The correct route depends on the legal form, emirate, licensing authority, business activity, visa position, tax registrations, financial records and whether there are creditors or disputes.

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How to close a company on the Dubai mainland

The mainland process varies by entity type.

Sole proprietorship

For a sole proprietorship, the UAE Government guidance identifies cancellation of labour cards through the Ministry of Human Resources and Emiratisation (MOHRE) as part of the closure process.

The business owner must also address any related permits, tax registrations, visas, leases and commercial accounts before the file can be fully closed.

Civil company

A civil company generally requires:

1. Cancellation of labour cards through MOHRE.
2. A duly notarised partnership termination contract.

The contract and supporting documents should reflect the company’s actual ownership and termination arrangements.

Commercial company or LLC

For a commercial company of any legal form, the mainland process is divided into two phases.

Phase 1: dissolution and liquidator appointment

The company must generally prepare:

1. Notarised minutes of the General Assembly confirming liquidation and appointing a named liquidator.
2. A letter from the liquidator accepting the appointment.
3. The liquidator’s supporting documents, including a licence copy, auditor registration certificate and notarised signature specimen.
4. The authority-published fee of AED 520 for the certificate of dissolution and liquidator appointment, subject to legal adviser approval.
5. A liquidation announcement in two Arabic local newspapers for one day, allowing debtors 45 days to submit claims.

Phase 2: final cancellation

After the creditor period, the file generally requires:

1. The original newspaper containing the announcement.
2. The company’s final report.
3. A declaration from the liquidator and partners confirming that no objections were received within the 45-day period.
4. Cancellation of labour cards through MOHRE.
5. Copies of the General Assembly minutes and dissolution certificate.

The AED 520 amount above is a fee published by the relevant authority. It should not be treated as the total cost of liquidation, because professional, newspaper, notarisation, tax, visa and clearance costs may vary.

Branches

The requirements also differ by branch type:

• Branch of a foreign company: the decision to liquidate the company from the Ministry of Economy's register, an attested Board of Directors decision to cancel, and labour-card cancellation through MOHRE.
• Branch of a local company: Board of Directors decision to cancel and labour-card cancellation through MOHRE.

If the Dubai licence has been expired for more than two years

The Dubai Government’s “Closing your business” guidance identifies additional requirements where a licence has been expired for more than two years. These include:

• An undertaking from the local partner accepting liability for debts.
• Documents supporting why cancellation is justified.
• A one-day liquidation announcement in widely circulated Arabic newspapers, with a 15-day creditor claim period.
• An undertaking confirming that there are no liabilities.
• Submission of the original newspaper.
• Labour-card cancellations.

How to close a company in a Dubai free zone

Free zone closure is authority-led. The UAE Government states that the process typically involves:

1. A shareholder resolution to close the business.
2. Cancellation of employee and investor visas.
3. Settlement of outstanding financial obligations.
4. VAT and Corporate Tax deregistration where applicable.
5. A licence cancellation or liquidation application to the relevant free zone authority.
6. Required clearances and supporting documents.
7. A final de-registration certificate confirming closure.

Branches require additional attention. A free zone branch registered with the Ministry of Economy and Tourism must be closed through that registration. Where it is not registered there, an attested parent-company decision may be required.

Why free zone procedures cannot be treated as universal

The authority’s checklist, publication period, auditor requirements, lease clearances, bank requirements and fees may differ.

For example:

• Dubai Development Authority: its FZ-LLC deregistration service lists a published service fee of AED 1,500, or AED 1,000 for “in5” companies, plus AED 10 Knowledge Dirham and AED 10 Innovation Dirham per transaction. It lists an estimated delivery time of four working days, but requires a members’ resolution, auditor confirmation, English and Arabic newspaper advertisements, Dubai Customs clearance where applicable, and leasing and finance clearances before the certificate is issued.
• DMCC: voluntary termination requires visa cancellation or transfer, lease termination with no outstanding amounts, bank account closure, winding-up or removal compliance and settlement of other outstanding matters. DMCC’s termination guidance also refers to publication periods of 14 days for termination and de-registration, together with telecom, utilities, bank, landlord and customs clearances where applicable.
• Meydan Free Zone: its published sequence is shareholder resolution, financial review and liquidation report, regulatory clearances, bank account closure, and final licence deregistration. It also warns that an inactive licence does not stop penalties where compliance obligations remain outstanding.

The DDA AED 1,500 service fee and the AED 520 mainland dissolution fee are authority-published fees only. They are not complete closure-cost estimates.

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VAT deregistration in the UAE

A VAT-registered business must apply for VAT deregistration when the relevant conditions arise. Under the Executive Regulation, a mandatory deregistration application must be submitted within 20 business days of the deregistration conditions being met.

The FTA service is free. The FTA states that processing can take up to 30 business days from receipt of a complete application. If information is missing or further documents are requested, a further period of up to 30 business days may apply.

After the effective deregistration date:

• The final VAT return and payable tax must be submitted and settled within 28 days.
• The VAT deregistration certificate is issued after the final return is approved and outstanding liabilities and penalties are settled.

For licence cancellation, typical documents include the trade licence cancellation certificate, liquidation letter and board resolution.

Late VAT deregistration can attract an administrative penalty. The published range starts at AED 1,000 and may rise monthly up to AED 10,000. Cabinet Decision No. 129 of 2025 revised several administrative penalties with effect from 2026, so the current position should be checked directly with the FTA.

If you are still operating and need to review your VAT position before closure, see our guide to UAE VAT registration in 2026.

Corporate Tax deregistration

A company that ceases to exist through cessation, dissolution or liquidation must apply for Corporate Tax deregistration.

For a juridical person, FTA Decision No. 6 of 2023 sets the filing deadline at within three months of the entity ceasing to exist, ceasing business, being dissolved or entering liquidation.

The EmaraTax service is free. FTA processing can take up to 40 working days from receipt of a complete application, with up to a further 40 working days if additional information is requested. If the taxpayer does not resubmit within 60 calendar days of an information request, the application may be rejected.

Typical evidence includes:

• Licence cancellation or liquidation documents.
• Financial statements up to the cessation date.
• Filed tax returns.
• Evidence that Corporate Tax and penalties have been settled.

Corporate Tax deregistration should not be treated as automatic once the licence is cancelled.

Employees, work permits and residence visas

Each employee’s work permit and employment contract must be dealt with through the applicable process. MOHRE’s cancellation service requires the employer to:

• Pay late-issuance or non-renewal fines.
• Confirm that worker entitlements have been settled.
• Obtain the employee’s signature approving cancellation and acknowledging receipt of dues, subject to defined exceptions.

MOHRE states that the service takes approximately two working days and is free through its portal or app, subject to any business-centre commission cap.

The residence permit is then cancelled through ICP or GDRFA Dubai, as applicable. The employer normally cancels the MOHRE work permit or contract first and then processes immigration cancellation. Dependants’ visas must be cancelled before the sponsor cancels their own residence visa.

A business owner or investor visa held through the company must also be cancelled, and the same sequence applies to the owner’s own visa and to any dependants.

Grace periods are not the same for everyone. ICP publishes periods of up to:

• 180 days for certain categories, including Golden, Green and Blue Residence holders.
• 90 days for certain skilled workers and property owners.
• 60 days for guarantor or host cases.
• 30 days for other categories.

Overstaying after the applicable grace period is published at AED 50 per day. ICP also lists application and smart-service fees for residence cancellation. Check the relevant ICP or GDRFA route for the visa category involved.

For future hiring compliance, see our guide to hiring your first employee in Dubai.

Commercial clean-up before final closure

A closure file may require more than government forms. Depending on the authority and activity, common clearances include:

• Bank account closure.
• Telecom cancellation with Etisalat or du.
• Utility clearance.
• Landlord or lease clearance.
• Finance and premises clearance.
• Customs NOC where the business imports, exports or holds customs records.
• Clearance from a third-party regulator for a regulated activity.

These are common examples, not a universal checklist. DDA, DMCC and other authorities apply their own requirements.

Common mistakes when closing a Dubai company

• Allowing the licence to lapse and assuming the company is closed.
• Cancelling visas without coordinating the tax and licensing files.
• Assuming tax deregistration happens automatically after licence cancellation.
• Assuming the free zone will close bank, telecom, landlord and customs accounts automatically.
• Forgetting the final VAT return.
• Missing the Corporate Tax deregistration deadline.
• Failing to prepare a liquidator’s final report where one is required.
• Leaving the company bank account open.
• Ignoring creditor claims, outstanding leases or unresolved disputes.
• Applying another free zone’s procedure to your own authority.

There is no single cost or timeline for every closure. The main drivers include entity type, mainland or free zone location, authority, employees and visas, regulated activities, outstanding filings, assets, creditors, disputes, publication periods and whether the licence has already lapsed.

Alternatives to closing

Closing is not always the only option. Before cancelling the licence, an owner may wish to assess:

• Selling the entity or business.
• Restructuring or merging.
• Moving from a free zone structure to a mainland structure.
• Suspending or replacing a licence where the authority permits it.

These options involve different legal, tax, licensing and commercial consequences. Once a licence is cancelled, reversing the decision may not be straightforward. A structured review before starting liquidation can help identify whether a sale, restructuring or relocation is more suitable.

For a practical assessment of your position, contact PJ Advisory. We can help you map the relevant authority, tax, visa and commercial closure steps without assuming that one checklist applies to every Dubai company.

Sources / References

UAE Government and Dubai authorities

1. UAE Government, Closing a business on the mainland, checked 6 October 2026; page updated 6 April 2026.
2. Dubai Government, Closing your business, checked 6 October 2026; published 3 April 2026. Manual click required: the page resolved in a normal browser but returned an access error during automated checking.
3. UAE Government, Closing a business in a free zone, checked 6 October 2026; page updated 16 April 2026.
4. Dubai Development Authority, Deregistration (FZ-LLC), checked 6 October 2026.
5. DMCC, Licensing Rules, checked 6 October 2026.
6. DMCC, Request for company termination, checked 6 October 2026.
7. Meydan Free Zone, Liquidation, checked 6 October 2026.
8. MOHRE, Cancellation of work permits and employment contracts, checked 6 October 2026. Manual click required: the page could not be reached by our automated check.
9. UAE Government, General provisions for residence visas, checked 6 October 2026.
10. ICP, Cancellation of residency permits, checked 6 October 2026.

Federal Tax Authority

11. FTA, VAT Deregistration, checked 6 October 2026.
12. FTA, Executive Regulation of Federal Decree-Law No. 8 of 2017, checked 6 October 2026.
13. FTA, Cabinet Decision No. 40 of 2017 and amendments, checked 6 October 2026.
14. FTA, Entry into force of amended administrative penalties, checked 6 October 2026.
15. FTA, Corporate Tax Deregistration, checked 6 October 2026.
16. FTA, Decision No. 6 of 2023 on the Tax Deregistration Timeline, checked 6 October 2026.
17. FTA, Public Clarification on the First Tax Period, checked 6 October 2026.

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For companies supplying UAE government entities, national companies and other participating organisations, ICV certification in the UAE can be an important part of the procurement process.

ICV stands for In-Country Value. The programme is designed to encourage more procurement spending, investment, employment and economic activity within the UAE. It does not replace a trade licence, financial audit, quality certification or tender registration. Instead, it provides a structured way to measure a supplier’s contribution to the UAE economy.

The practical point for suppliers is simple: whether you need an ICV certificate depends on the procurement entity and the tender conditions. Businesses should not assume that every UAE government tender follows exactly the same requirement.

What is the UAE National ICV Programme?

The National In-Country Value Programme is a UAE government initiative led by the Ministry of Industry and Advanced Technology (MoIAT).

According to MoIAT, the programme aims to redirect government procurement expenditure and spending by leading national companies into the UAE economy through local manufacturing, products, services and investment.

The programme is also intended to support:

• Local supply chains and industrial development
• UAE-based manufacturing and services
• Employment and development of Emirati talent
• Investment within the UAE
• Research, development and advanced technology
• The growth and competitiveness of local companies

An ICV certificate records a supplier’s calculated ICV score. The score reflects the information submitted by the supplier and verified by an authorised certifying body under the current official methodology.

It is important to treat the score as a measurement, not a guarantee. A higher score may support a supplier’s position in a procurement evaluation, but it does not guarantee a tender award.

Which companies need an ICV certificate?

A company generally needs to consider ICV certification when it intends to bid for work from a participating entity that has implemented the ICV programme and requires suppliers to submit an ICV certificate.

Participating entities may include government entities and major national companies. However, the requirement is procurement-specific. The tender documents, supplier registration instructions or procurement portal of the relevant entity should be checked before bidding.

An ICV certificate is normally obtained for the relevant legal entity. The September 2025 MoIAT guidelines state that each legal entity seeking certification requires its own certificate. Separate licences may therefore require separate treatment, even where ownership is common. The guidelines also address certain branch situations and explain how the company’s legal structure affects the certification process.

Businesses should check the requirement particularly when:

• Registering as an approved supplier
• Responding to a government or semi-government request for quotation
• Bidding for contracts with a participating national company
• Supplying industrial, construction, engineering, technical, professional or support services
• Renewing an existing supplier qualification
• Updating procurement records after a financial year-end

A company may still be legally able to operate without an ICV certificate, but it could face limitations in a tender where a valid certificate is required. The exact commercial consequence must be confirmed in the tender documentation.

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Who issues an ICV certificate?

MoIAT manages the National ICV framework, publishes the official guidelines and maintains the programme infrastructure. It also authorises professional services firms to act as ICV certifying bodies.

An authorised certifying body reviews the supplier’s information, checks supporting evidence and issues the system-generated ICV certificate through the official ICV Platform.

The certifying body is not simply preparing a marketing document. It is expected to verify the supplier’s reported figures against financial statements and supporting records. MoIAT also reserves the right to review certification engagements and request information.

Suppliers should select a certifying body from the current official list published through MoIAT’s ICV resources and platform. The list may change, so businesses should avoid relying only on an old quotation, previous certificate or third-party directory.

What contributes to an ICV score?

The methodology differs depending on whether the supplier is treated as a goods manufacturer or a service provider. The current official formula and template should always be used because the programme requirements can be updated.

In general terms, the assessment considers areas such as:

• Local manufacturing or third-party procurement
• Investment and the value of assets located in the UAE
• Emiratisation, including eligible salaries, benefits and training
• Expatriate contribution and workforce-related information
• Revenue from customers inside and outside the UAE
• Growth in UAE-based investment
• Relevant bonuses for eligible activities
• Advanced technology and sustainability factors
• Sustainability policies or environmental certifications, where applicable

The detailed formula, definitions, exclusions and supporting evidence requirements are set out in the official MoIAT guidelines and ICV template. Businesses should not rely on simplified percentage tables copied from older articles, presentations or consultancy websites.

The official MoIAT formula page presents separate structures for goods manufacturers and service providers. The classification can affect which information is relevant and how a supplier’s contribution is assessed.

What documents are usually required?

The exact document list depends on the legal entity, business activity, financial year and classification. A supplier should generally prepare the following information.

Corporate and licensing documents

• Valid trade licence
• Legal entity details
• Ownership and branch information, where relevant
• Contact details of the authorised signatory
• Company registration information on the ICV Platform

Financial information

• Latest eligible audited financial statements
• Financial statements prepared under IFRS
• Audit performed by a licensed UAE auditor in accordance with applicable auditing standards
• Trial balance and account schedules
• Revenue records
• Asset registers and net book values
• Details of procurement and operating costs

The current MoIAT supplier certification guidelines state that the financial statements must not be older than two years from the certification year.
They also introduce an important requirement for relevant certificates issued for financial years ending after 31 December 2024: stand-alone audited financial statements for the entity being certified are required. Consolidated financial statements or figures that cannot be properly separated may prevent certification.

Procurement and workforce records

Depending on the business, the certifying body may need:

• Vendor listings and purchase details
• Invoices or other procurement evidence
• Valid vendor ICV certificates where relevant
• Employee lists
• Wage Protection System records, where applicable
• MOHRE records or official free zone employee information
• Salary and training information
• Evidence supporting Emiratisation-related figures
• Asset ownership and location records
• Export documentation and certificates of origin, where relevant

Private companies are also required under the guidelines to register on the NAFIS platform as partners before obtaining an ICV certificate.

How does the ICV certification process work?

The process normally follows these broad stages:

1. Confirm the requirement
   Review the relevant tender, supplier portal or procurement instructions to establish whether an ICV certificate is required and what validity conditions apply.

2. Register on the ICV Platform
   Suppliers use the official platform and UAE Pass. A company without an existing profile must complete the company registration process.

3. Select authorised certifying bodies
   Through the platform’s bidding process, the supplier can select authorised certifying bodies and request quotations.

4. Appoint a certifying body
   After reviewing the quotation and engagement terms, the supplier accepts one offer. The certifying body uploads the engagement letter.

5. Prepare and submit the ICV information
   The supplier completes the official template and provides financial and supporting documents.

6. Verification and review
   The certifying body checks the submission, requests clarification where necessary and verifies the reported information.

7. Certificate issuance
   Once approved, the certifying body issues the official system-generated ICV certificate through the platform. The completed template itself is not the official certificate.

The official guidelines do not provide one universal processing time for every supplier. The duration depends on the completeness of the records, the complexity of the business, the availability of audited financial statements and the time required to resolve queries.

How long is an ICV certificate valid?

Under the current MoIAT Supplier Certification Guidelines, an ICV certificate is valid for 14 months from the date of issuance of the audited financial statements used for the certification.

This is an important distinction. The validity period is not simply calculated from the date the certificate is uploaded or printed.

A supplier may obtain recertification during the existing certificate’s validity period using the same audited financial statements. However, recertification does not reset the original 14-month validity period.

Businesses should therefore plan their renewal around:

• The date their audited financial statements are issued
• The financial year used for the certificate
• Upcoming tender submission dates
• Any procurement portal requirements
• The availability of updated audited financial statements

Why are some companies not eligible or unsuccessful?

An application may be delayed, rejected or require substantial clarification where:

• The applicant uses the wrong legal entity or licence details
• The financial statements are too old
• Stand-alone financial statements are unavailable
• Consolidated figures cannot be separated for the applying entity
• The ICV template does not reconcile with the audited accounts
• Vendor spend is unsupported
• Employee numbers or salaries do not match official records
• Required NAFIS registration has not been completed
• The company selects the wrong goods manufacturer or service provider classification
• The supplier cannot provide evidence for reported assets, revenue or procurement
• Figures are incomplete, inconsistent or unsupported

The guidelines also warn that gross negligence or wilful default may lead to punitive action, including being banned from the National ICV Programme. Accuracy and document control are therefore more important than trying to maximise a score through unsupported adjustments.

ICV certification versus ISO certification

ICV and ISO certification serve different purposes.

ICV certification measures a company’s contribution to the UAE economy for the purposes of the National ICV Programme and participating procurement processes.

ISO certification confirms that an organisation operates a management system against the requirements of a particular ISO standard, such as quality, environmental or information security management.

An ISO certificate does not automatically replace an ICV certificate. However, the current ICV methodology may recognise certain eligible environmental or sustainability certifications in specific circumstances.

This is where an integrated ICV & ISO certification service can be useful: the two processes should be coordinated, but they should not be confused.

Practical benefits for suppliers

A valid ICV certificate can help a business:

• Meet a procurement requirement where ICV is mandatory
• Participate more effectively in qualifying tenders
• Present verified local economic contribution
• Identify gaps in local procurement and workforce records
• Improve financial data organisation for future certification
• Support supplier registration with participating entities
• Align localisation, investment and sustainability activities with commercial objectives

It does not guarantee a tender award, a particular score or a specific commercial outcome. Its value depends on the relevant procurement rules and the quality of the supplier’s underlying records.

For support with ICV certification, ISO certification or broader UAE business compliance, contact PJ Advisory. We can help review the applicable requirements, organise documentation and coordinate the certification process transparently.

Sources and references

1. Ministry of Industry and Advanced Technology: National In-Country Value Programme
   https://moiat.gov.ae/en/programs/icv
   Publication or update date: not displayed on the page; accessed 1 October 2026.

2. MoIAT, ICV Formula
   https://moiat.gov.ae/en/programs/icv-formula
   Publication or update date: not displayed on the page; accessed 1 October 2026.

3. MoIAT: National ICV Supplier Certification Guidelines, September 2025, Version 1
   https://moiat.gov.ae/-/media/site/moiat/programs/icv-formula/icv-supplier-certification-guidelines-sep-2025-v1.ashx
   Published: September 2025.

4. MoIAT, Issuing an ICV Certification (service page)
   https://moiat.gov.ae/en/services/issuing-an-icv-certification
   Publication or update date: not displayed on the page; accessed 1 October 2026.

5. MoIAT, National ICV open data: certifying bodies and certified companies
   https://moiat.gov.ae/en/open-data/national-icv
   Publication or update date: not displayed on the page; accessed 1 October 2026.

6. Official National ICV Platform
   https://icv.moiat.gov.ae/
   Publication or update date: not displayed on the platform; accessed 1 October 2026.
   Publication or update date: not displayed on the platform; accessed 1 October 2026.

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Hiring your first employee in Dubai involves more than agreeing on a salary and issuing a visa. The employer must complete a sequence of labour, immigration, identity, insurance and payroll steps. Missing one of them can delay onboarding, prevent a work permit from being issued or restrict the company’s ability to hire additional workers.

This guide focuses on private-sector employment in Dubai and explains the main federal requirements, together with the areas where mainland and free-zone procedures may differ.

The correct order for hiring an employee in Dubai

For a typical mainland private-sector employer, the process usually follows this order:

1. Obtain the company’s trade licence and register the establishment with the relevant labour and immigration authorities.
2. Confirm that the company has an available work-permit quota.
3. Issue the official job offer and employment contract through the applicable authority.
4. Apply for the employee’s work permit.
5. Arrange an entry permit or in-country status change, where required.
6. Complete medical fitness testing and the Emirates ID application.
7. Arrange the residence permit and maintain the required health insurance.
8. Register the employee in payroll and the Wage Protection System where applicable.
9. Maintain employment records, pay wages on time and monitor renewals and compliance obligations.

The exact route depends on the employee’s nationality, current immigration status, job, company classification, business activity and location.

Establishment card, immigration file and work-permit quota

Before a mainland company can sponsor employees, it generally needs an active establishment file with the Ministry of Human Resources and Emiratisation (MoHRE), including the relevant establishment card and authorised signatory arrangements. The company also needs the appropriate immigration file or establishment card with the relevant residency authority.

These registrations do not automatically mean that every visa or work permit will be approved. The company must also have sufficient quota and meet the conditions for the requested occupation.

MoHRE’s quota assessment can take account of factors such as:

• The company’s valid trade licence and registered activity
• The size and suitability of the workplace
• Existing employees and business requirements
• The requested profession and its compatibility with the licensed activity
• The company’s compliance status and classification
• Supporting information about projects or operational needs

A quota is not the same as a work permit. The quota is the available capacity; an individual work permit is the authorisation for a particular employee and role.

The official employment offer and contract

For a MoHRE-regulated employer, the hiring process should use the current MoHRE-approved job offer and employment-contract workflow. A private offer letter or internally drafted contract should not replace the official process.

The employment contract should accurately reflect the agreed role, remuneration, workplace, working hours, start date, contract term, probation period, leave entitlement and notice period. The employment terms filed with the authority should match the terms actually offered to the employee.

Fixed-term and unlimited contracts

Under the current UAE Labour Law, private-sector employment relationships are regulated through fixed-term contracts. The parties may agree the duration, and the contract can be renewed or extended.

“Unlimited” contracts belong principally to the former legal framework. Existing unlimited contracts were required to be converted in accordance with the current law. Employers hiring today should not assume that an unlimited-contract template remains appropriate.

A contract may also specify the applicable work model, including full-time, part-time, temporary, flexible, remote or job-sharing arrangements. The rules for leave, gratuity and work permits can differ according to the work model.

The contract should be prepared in the format required by the relevant authority. For MoHRE-regulated employment, use the current MoHRE system rather than relying only on a bilingual private document.

Work permits: the employee must be authorised before working

Federal labour law prohibits a person from working in the UAE without a valid work permit. Employers must not allow a new hire to begin work while waiting for the permit, residence status or another required approval.

MoHRE offers different permit categories, including permits for:

• Recruiting a worker from outside the UAE
• Transferring a worker between establishments
• Hiring a resident sponsored by a family member
• Part-time, temporary or mission work
• Hiring a UAE or GCC national
• Hiring certain residence-visa holders, such as Golden Residency holders

The correct permit depends on the employee’s circumstances. The occupation must be compatible with the company’s business activity, the trade licence must be valid and the employee may need certificates or professional approvals for regulated roles.

A company’s failure to comply with labour regulations or the WPS can also affect the issuance or renewal of later work permits.

Residence visa, medical fitness and Emirates ID

Once the appropriate work-permit process has started, the employee’s immigration steps depend on whether they are entering the UAE from abroad or changing status from inside the country.

For an employee aged 18 or above applying for a residence visa, medical fitness testing is required. The employee must attend an approved medical fitness centre and satisfy the applicable health requirements for residence.

The employee must also apply for an Emirates ID through the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP). The application may involve identity verification, a photograph and biometrics, depending on the applicant and the application route.

Medical fitness testing and an Emirates ID application do not, by themselves, authorise employment. The work permit and immigration status must be completed through the correct channels.

For a Dubai-sponsored residence process, the relevant Dubai residency authority is GDRFA Dubai. In other emirates, the process may involve ICP or another relevant authority. Employers should not assume that a Dubai procedure applies identically elsewhere.

Health insurance in Dubai

Health insurance is a separate compliance requirement. Dubai’s health-insurance framework requires employers, including employers in Dubai free zones, to provide qualifying health insurance for employees and bear the required cost. The policy must remain valid during employment.

The applicable insurance product and evidence requirements can vary according to the employee, employer and visa process. Employers should arrange cover early rather than treating it as an optional benefit or leaving it until the end of the visa application.

Signing an employment document at a desk. Photo: Andrea Piacquadio / Pexels — Pexels License (free for commercial use). Source: https://www.pexels.com/photo/crop-businessman-giving-contract-to-woman-to-sign-3760067/

The Wage Protection System

The Wage Protection System (WPS) is an electronic salary-payment and monitoring system developed by the UAE Central Bank and used by MoHRE to monitor wage payments.

MoHRE-regulated establishments generally must pay employee wages through WPS or another approved channel. Payments are processed through authorised banks, exchange houses or financial institutions.

Under the WPS rules published for 2026:

• Wages for the previous month are due on the first day of each Gregorian month.
• Employers must transfer at least 85% of the total wages due on time, subject to lawful deductions and the applicable rules.
• Electronic alerts and monitoring begin when payment is delayed.
• From the fifth day after the due date, MoHRE may suspend the issuance of new work permits.
• Further delays can result in reclassification, administrative fines, labour-dispute procedures and wider work-permit restrictions, depending on the employer’s size, sector and history.

The 85% compliance threshold should not be misunderstood as permission to withhold the remaining wages. Employees remain entitled to the wages agreed in the contract and required by law.

Some categories of employers and workers are excluded from WPS compliance under the applicable resolution. Free-zone employers should confirm whether they are registered with MoHRE or subject to a separate authority’s payroll process.

Probation and notice periods

A probation period may not exceed six months and cannot be imposed more than once by the same employer for the same employee.

If the employer terminates employment during probation, at least 14 days’ written notice is required. If the employee intends to move to another UAE employer during probation, the employee must generally give at least one month’s written notice. If the employee is leaving the UAE, the notice requirement is generally 14 days.

After probation, the contractual notice period must be between 30 and 90 days. The notice provision should be clearly written in the official contract and applied consistently.

Working hours, annual leave and gratuity

For most private-sector employees, normal working hours are up to eight hours per day or 48 hours per week. Employees working more than five consecutive hours must receive breaks that are not counted as working time. Overtime is regulated and is generally limited to two additional hours per day, subject to the law and applicable exceptions.

Annual leave is generally:

• 30 fully paid days after completing one year of service
• Two days per month where service exceeds six months but is less than one year
• Pay for the legally accrued unused balance when employment ends

For a full-time foreign employee who completes at least one year of continuous service, end-of-service gratuity is calculated on the last basic wage:

• 21 days’ basic wage for each year during the first five years
• 30 days’ basic wage for each year after the first five years
• A total maximum of two years’ wage under the statutory gratuity rules

The employer must generally settle outstanding wages, leave entitlements and gratuity within 14 days after termination. Employers participating in the voluntary alternative end-of-service Savings Scheme must apply the scheme rules to enrolled employees instead of the traditional calculation for the relevant period.

Mainland versus free-zone hiring

Federal labour law applies broadly to UAE private-sector employment, but the administrative route is not identical everywhere.

A mainland company normally deals with MoHRE for work permits, contracts and labour-file matters, together with the relevant residency authority. A free-zone company may process employment matters through its free-zone authority, through MoHRE or through a combination of authorities, depending on the zone and employee category.

Do not assume that a quota, contract form, payroll process, insurance procedure or cancellation step used in one free zone applies in another. Before recruiting, confirm:

• Which authority issues the employment permit
• Whether the company is registered with MoHRE
• Which employment contract form is required
• Whether WPS applies and through which channel
• Which authority handles the establishment and immigration cards
• Whether the free zone has additional office, insurance or HR requirements

Common first-time employer mistakes

The most avoidable problems include:

• Letting the employee start work before the work permit is issued
• Using a private contract that does not match the official registered offer
• Choosing a job title that does not fit the company’s licensed activity
• Assuming a trade licence automatically provides unlimited visa capacity
• Delaying medical testing, Emirates ID or health-insurance arrangements
• Paying salary by cash or informal bank transfer instead of the required WPS route
• Treating probation as a period with no notice obligations
• Calculating gratuity on total salary instead of basic wage
• Missing work-permit, residence, insurance or licence renewal dates
• Applying mainland procedures to a free-zone company without checking the zone’s rules

Final checklist

Before the first employee starts, confirm that the company has:

• An active trade licence and establishment registrations
• Sufficient work-permit quota
• The correct official offer and employment contract
• A valid work permit
• The required entry or status-change approval
• Medical fitness and Emirates ID applications completed as required
• Residence status and Dubai health insurance arranged where applicable
• Payroll and WPS registration prepared
• A system for monitoring renewals, leave, salary payments and end-of-service obligations

PJ Advisory helps entrepreneurs with company formation, residency visas and Emirates ID processing, together with ongoing compliance support and deadline notifications. If you are hiring for the first time, contact PJ Advisory to discuss the correct process for your company’s mainland or free-zone structure.

Sources / References

1. Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, UAE Legislation, issued 2021; effective 2 February 2022; current text checked 1 October 2026.
2. Cabinet Resolution No. 1 of 2022, Executive Regulation of the Labour Relations Law, issued 2022; effective 2 February 2022; current text checked 1 October 2026.
3. UAE Government: Employment contracts, duration and models, updated 12 August 2026.
4. UAE Government: Work permits, updated 24 September 2026.
5. MoHRE: Work Permit Quotas for Establishments (service page), current service page checked 1 October 2026; page date not displayed.
6. UAE Government: Annual leave and official leaves, updated 24 September 2026.
7. UAE Government: Working hours and overtime, updated 12 August 2026.
8. UAE Government: Payment of wages and WPS, updated 25 September 2026.
9. Ministry of Human Resources and Emiratisation: official services and resolutions portal, current official portal checked 1 October 2026; page date not displayed.
10. Central Bank of the UAE: UAE Wage Protection System, official page checked 1 October 2026; page date not displayed.
11. UAE Government: General provisions for residence visas, updated 28 September 2026.
12. ICP: Apply for a new Emirates ID card, current service page checked 1 October 2026; page date not displayed.
13. UAE Government: End-of-service benefits for private-sector employees, updated 12 August 2026.
14. Dubai Health Authority: Health Insurance and the Dubai Health Insurance Corporation, official page checked 1 October 2026; page date not displayed.

Two colleagues reviewing business documents at a desk. Photo: Mikhail Nilov / Pexels — Pexels License (free for commercial use). Source: https://www.pexels.com/photo/a-man-and-woman-looking-to-the-documents-8730781/

UAE VAT registration is an important compliance decision for businesses operating in Dubai and elsewhere in the UAE. Registration is mandatory once a resident business crosses the statutory threshold, while smaller businesses may qualify for voluntary registration. Different rules apply to non-resident businesses, free zone companies, taxable supplies, imports and exempt activities.

This guide explains the UAE VAT registration rules applicable in 2026, based on official Federal Tax Authority (FTA), UAE Government and legislation sources checked on 1 October 2026.

What is VAT in the UAE?

Value Added Tax is a consumption tax imposed on taxable supplies of goods and services and certain imports. The standard UAE VAT rate is 5%. A VAT-registered business generally charges output VAT on taxable sales, records recoverable input VAT on eligible business expenses and pays the net amount to the FTA.

VAT was introduced in the UAE on 1 January 2018. It applies across mainland businesses and may also apply to businesses established in free zones. A free zone company is not automatically outside the UAE VAT system. Special “Designated Zone” rules may affect particular supplies of goods, but they do not remove the need to assess VAT registration obligations.

UAE VAT registration thresholds in 2026

Mandatory registration: AED 375,000

A UAE-resident business must register for VAT when the value of its taxable supplies and imports:

• Exceeds AED 375,000 during the previous 12 months; or
• Is expected to exceed AED 375,000 during the next 30 days.

The test is not limited to a calendar year. Businesses should monitor their taxable turnover using a rolling 12-month calculation and maintain evidence supporting any forward-looking expectation.

The threshold is based on relevant taxable supplies and imports, not simply total revenue. Exempt supplies and supplies outside the scope of UAE VAT are generally treated differently when calculating the registration threshold.

The official FTA registration page confirms the mandatory threshold and the 30-day forward test. The threshold is also established in the UAE VAT legislation and Executive Regulation.

Voluntary registration: AED 187,500

A UAE-resident business that is not required to register may apply voluntarily where, during the previous 12 months or the next 30 days, it exceeds the voluntary threshold of AED 187,500 based on either:

• Taxable supplies and imports; or
• Taxable expenses subject to VAT.

Voluntary registration may be relevant to a start-up that has significant VAT-bearing costs before reaching the mandatory sales threshold. However, registration also creates ongoing obligations, including VAT return filing, record keeping and correct invoicing. It should therefore be assessed as a compliance decision, not only as a potential input VAT recovery opportunity.

Non-resident businesses

A non-resident business may have to register for UAE VAT regardless of turnover. Registration is generally mandatory where the business:

1. Makes taxable supplies with a place of supply in the UAE; and
2. Has no other person in the UAE responsible for accounting for the VAT.

This means that a non-resident business cannot rely on the AED 375,000 threshold in the same way as a UAE-resident business.

However, the precise result depends on the transaction. For example, where a UAE VAT-registered customer must account for VAT under the reverse-charge mechanism, the non-resident supplier may not be required to register for that supply. Imported goods also require careful analysis: where the importer is responsible for import VAT, the non-resident supplier generally does not use that import value to determine its registration entitlement.

Taxable, zero-rated and exempt supplies

Registration depends substantially on the nature and place of a business’s supplies.

Standard-rated taxable supplies

Most taxable goods and services supplied in the UAE are subject to the standard VAT rate of 5%. Examples may include ordinary commercial services, professional services, many retail sales and commercial property supplies, provided the relevant place-of-supply and other conditions are satisfied.

A business should not assume that every invoice is standard-rated. Each activity and transaction should be reviewed separately.

Zero-rated supplies

A zero-rated supply is still a taxable supply, but VAT is charged at 0%. It can therefore remain relevant to registration and may support recovery of eligible input VAT.

The legislation includes categories such as:

• Qualifying exports of goods and services;
• International transport of passengers and goods;
• Qualifying aircraft, ships, buses and trains used for commercial transport;
• Certain supplies connected with qualifying means of transport;
• Investment precious metals meeting the legal conditions;
• Certain first supplies of residential buildings;
• Qualifying education and related supplies;
• Qualifying healthcare services and related goods.

The conditions are specific. For example, an export is not zero-rated merely because the customer is outside the UAE; the business may need to retain appropriate customs and commercial evidence.

Exempt supplies

Exempt supplies are not charged with VAT and generally do not provide the same input VAT recovery treatment as taxable supplies. The legislation includes:

• Certain financial services;
• Residential property supplies that do not qualify for zero-rating;
• Bare land;
• Qualifying local passenger transport.

A business making a mixture of taxable, zero-rated and exempt supplies may need to apportion input VAT. This can materially affect the amount that may be recovered.

Place of supply, imports and exports

A VAT analysis should begin with the place of supply.

For goods, the location of the goods and the movement of the goods are important. Goods supplied in the UAE will generally have a UAE place of supply, subject to specific import, export, installation and Designated Zone rules.

For services, the general rule is based on the supplier’s place of residence, but the legislation contains important exceptions. These include services:

• Supplied to a UAE business by a non-resident supplier;
• Related directly to UAE real estate;
• Relating to restaurants, hotels and catering;
• Relating to transport;
• Involving telecommunications or electronic services, where actual use and enjoyment may be relevant.

Imports may create VAT obligations even where the supplier is not established in the UAE. A VAT-registered UAE recipient may need to apply the reverse charge to imported services or other qualifying supplies. Goods imported through customs may also appear in the VAT return based on the business’s customs and VAT records.

Designated Zone treatment is particularly fact-sensitive. A company established in a Designated Zone may still need to register, and services supplied in a Designated Zone are not automatically outside the UAE VAT system.

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How to register through EmaraTax

VAT registration is completed electronically through the FTA’s EmaraTax platform.

The current FTA service process generally involves:

1. Creating or accessing an EmaraTax account;
2. Creating a taxable person profile;
3. Selecting the VAT registration service;
4. Completing the entity, business activity, turnover and eligibility sections;
5. Uploading supporting documents;
6. Reviewing the application and declaration;
7. Submitting the application through the portal.

The FTA service card states that the service is free. It gives an estimated submission time of 45 minutes and an estimated FTA completion time of 20 business days for a completed application. These are administrative estimates, not guarantees of approval or completion for every application.

Documents and information usually required

Requirements vary according to the entity type and application basis. The FTA service card identifies documents and information that may include:

• Certificate of incorporation, memorandum of association or partnership agreement;
• Commercial registration or equivalent licensing document;
• Valid trade licence and branch licences, where applicable;
• Passport and Emirates ID copies for owners and authorised signatories;
• Power of attorney where the authorised signatory is not identified in the constitutional documents;
• A signed and stamped declaration of taxable supplies and monthly sales;
• Invoices, purchase orders, contracts, ownership documents, completion certificates or lease agreements;
• At least five VAT invoices where registration is based on taxable expenses;
• Contracts or purchase orders supporting expected future revenue;
• Customs registration details, where relevant;
• Bank account information, which the FTA service card identifies as optional at registration.

Documents should be consistent with the information entered in EmaraTax. Inaccurate turnover declarations or unsupported expectations can result in requests for further information, resubmission or other action by the FTA.

Tax Registration Number and VAT certificate

Once the application is approved, the FTA issues a Tax Registration Number, commonly called a TRN. The VAT legislation defines the TRN as the unique number issued by the Authority to a person registered for tax purposes.

The FTA service card states that the VAT registration certificate becomes available in the taxpayer’s electronic dashboard after approval. The TRN should be used on VAT returns, tax invoices, credit notes and other tax documents where required.

VAT returns, sales and expenses

The standard VAT tax period is three calendar months, although the FTA may assign a shorter or longer period in appropriate circumstances.

A VAT return must generally be submitted and any VAT due paid no later than the 28th day following the end of the relevant tax period, unless the FTA directs another date. A nil return may still be required when there are no transactions.

A return typically requires the business to declare:

• Standard-rated sales and output VAT;
• Zero-rated supplies;
• Exempt supplies;
• Reverse-charge purchases;
• Imported goods;
• Recoverable standard-rated expenses;
• Recoverable VAT under the reverse charge;
• Net VAT payable or refundable.

Wages, salaries, private expenses and expenses relating to exempt or non-business activities should not be treated as recoverable input VAT simply because they appear in the accounting records.

Records and ongoing compliance

VAT businesses should maintain an organised audit trail containing:

• Sales and purchase records;
• Tax invoices and credit notes issued and received;
• Import and export documents;
• Customs information;
• VAT calculations and reconciliations;
• Records supporting reverse-charge entries;
• Records of corrections and adjustments;
• Evidence supporting zero-rated exports;
• Fixed asset and inventory information where relevant.

The VAT legislation requires taxable persons to keep detailed tax records. The Executive Regulation provides that retention periods are subject to the Tax Procedures framework and specifies a longer 15-year period for records relating to real estate. FTA VAT guidance has traditionally referred to a minimum five-year retention period for ordinary VAT records. Businesses should follow the longest period applicable to their records and any specific FTA instruction, audit or dispute.

Late registration and non-compliance

A person required to register must submit the application within the applicable statutory timeframe, generally 30 days from becoming liable to register. Late registration can create two separate exposures:

1. An administrative penalty for failing to register on time; and
2. VAT liability on taxable supplies made from the date the business should have been registered.

The official Cabinet Decision No. 49 of 2021 lists an AED 10,000 penalty for failure to submit a registration application within the timeframe specified in the Tax Law. The FTA’s current service card confirms that late registration penalties apply under the applicable legislation.

The FTA also announced that Cabinet Decision No. 129 of 2025 amending the administrative penalty framework entered into force on 14 April 2026. Because penalty provisions can change, businesses should verify the current amount and calculation in the latest legislation and their EmaraTax account before relying on any historic summary.

Other compliance risks include:

• Late VAT return filing;
• Late payment of VAT;
• Incorrect VAT returns;
• Failure to keep required records;
• Incorrect tax invoices or credit notes;
• Failure to account for reverse-charge transactions;
• Failure to update tax registration information.

Practical checklist for UAE businesses

Before applying for UAE VAT registration, a business should:

• Review taxable, zero-rated, exempt and outside-scope activities;
• Calculate taxable supplies and imports using the rolling 12-month test;
• Monitor expected supplies during the next 30 days;
• Check whether non-resident or reverse-charge rules apply;
• Reconcile accounting records with invoices and bank activity;
• Prepare contracts, invoices and turnover evidence;
• Confirm customs registration details where relevant;
• Establish a VAT return calendar;
• Keep a separate record of output VAT and recoverable input VAT;
• Review free zone and Designated Zone transactions individually.

UAE VAT registration is not simply a portal application. It establishes continuing reporting, invoicing and record-keeping responsibilities. If you need help reviewing your registration position or preparing the information for EmaraTax, you can contact PJ Advisory for practical guidance based on your business activity and structure.

Sources / References

1. Federal Tax Authority, Registration for VAT, page last updated 6 April 2026.
2. Federal Tax Authority, VAT Registration Service Card, page last updated 19 August 2026.
3. Federal Tax Authority, Filing VAT Returns and Making Payments, page last updated 16 May 2024.
4. UAE Government, Value Added Tax, page updated 30 March 2026.
5. Federal Tax Authority, Federal Decree-Law No. 8 of 2017 on Value Added Tax and amendments, original law issued 23 August 2017; consolidated amended text checked.
6. Ministry of Finance, Value Added Tax (VAT), page updated 16 September 2025.
7. Ministry of Finance, VAT law amendments effective January 2026 (Federal Decree-Law No. 16 of 2025), published 3 December 2025.
8. Federal Tax Authority, VAT Registration User Manual for EmaraTax, dated October 2022.
9. Federal Tax Authority, VAT User Guide: Returns, August 2021.
10. Federal Tax Authority, Cabinet Decision No. 49 of 2021 on Administrative Penalties, issued 28 April 2021.
11. Federal Tax Authority, 2026 amendment to the administrative penalty framework, page last updated 17 April 2026; Cabinet Decision No. 129 of 2025 effective 14 April 2026.
12. Federal Tax Authority, VAT Guides, References and Public Clarifications, page last updated 4 September 2026.