Getting VAT-ready before you register

When registration becomes required

In the UAE you must register for VAT when your taxable supplies over the previous 12 months exceed AED 375,000, or when you expect them to exceed that amount in the next 30 days. You may register voluntarily from AED 187,500. The standard rate is 5%.

Keep a running 12-month total of taxable sales, not just the calendar year. It is the rolling figure that decides the date.

What to prepare now

• Invoice numbering that is sequential and never reused
• Customer and supplier records with full legal names, addresses and TRNs where they have them
• An invoice layout that can show “Tax Invoice”, your TRN, the VAT per line and totals in AED
• Foreign-currency invoices converted to AED at a recorded rate
• Expenses kept with their supplier invoices, so input VAT can be claimed later

E-invoicing is coming next

The UAE is moving to mandatory e-invoicing, where invoices are exchanged as structured XML through accredited service providers. Businesses with annual revenue of AED 50 million or more go live on 1 January 2027 and must appoint a provider by 30 October 2026. Businesses below that go live on 1 July 2027, with a provider appointed by 31 March 2027. The requirement applies whether or not you are VAT registered, unless the law excludes you.

This guide is general information, not tax advice. Rules and dates change, so confirm your position with the Federal Tax Authority or your tax adviser.