VAT Registration for Startups: What Startups Need to Know in Dubai
                     VAT Registration for Startups: 
What Startups Need to Know 
in Dubai
Importance of VAT Registration
VAT Registration in Dubai, UAE, is a crucial step for startups looking to establish their 
operations. Introduced in the UAE in 2018, VAT is set at a standard rate of 5% and 
applies to most goods and services, making it essential for businesses to understand 
their obligations. For startups, registering for VAT ensures compliance with local laws, 
enhances credibility, and helps avoid potential fines. This small yet significant step can 
also streamline business operations, as VAT-compliant companies can claim back the 
tax paid on business-related expenses. 
When Does a Startup Need to 
Register for VAT?
For startups, the mandatory VAT Registration in Dubai, UAE, threshold is AED 375,000 
in taxable turnover annually. If a startup’s taxable revenue exceeds this amount, 
registration becomes compulsory. However, startups with revenue exceeding AED 
187,500 may opt for voluntary registration. This voluntary registration can be strategic 
for growing startups, as it allows them to claim input tax credits on purchases, ultimately 
reducing costs.
Steps to Register for VAT in Dubai
1. Prepare the Required Documents
2. Register Through the FTA Portal
3. Receive the TRN (Tax Registration Number)
1. Prepare the Required 
Documents
To ensure a smooth VAT registration process, startups must gather and organize all essential 
documentation. This includes: 
 Trade License: The official document that proves the business is legally permitted to 
operate in Dubai. 
 Passport Copies of Business Owners: A copy of the main business owner’s and, if 
applicable, any partners’ or shareholders’ passports to verify identity. 
 Company Bank Details: A bank statement or letter that verifies the company’s banking 
information to establish financial credibility. 
 Financial Statements: These documents, such as income statements or balance sheets, 
show the company’s financial standing and help determine whether the business meets the 
mandatory or voluntary VAT registration threshold. 
2. Register Through the FTA 
Portal
The Federal Tax Authority (FTA) has an online portal that facilitates the VAT registration 
process. Startups must create an account on the FTA’s e-Services portal and complete 
the VAT registration form by providing accurate business information, including contact 
details, the nature of the business, and estimated future revenues and expenses. It’s 
crucial that all information submitted is precise and supported by the documentation 
provided, as discrepancies may lead to delays or rejection. 
3. Receive the TRN (Tax 
Registration Number)
Once the application is submitted, the FTA reviews it, which may take a few business 
days. If additional details are required, the startup will be notified to provide further 
information. Upon successful review, the FTA issues a Tax Registration Number (TRN), 
a unique identifier for VAT-registered businesses. This number is mandatory for all tax-
related transactions and must be displayed on invoices, contracts, and other official 
business documents to indicate VAT compliance. 
Benefits of VAT Compliance
VAT registration not only ensures startups operate legally but also bolsters their 
reputation. Being VAT-registered signals to partners and clients that the startup is 
committed to transparency and financial responsibility. Moreover, it allows startups to 
reclaim VAT paid on business expenses, fostering better cash flow management.
THANKYOU
Contact Us
+971-55 (554) 0853
[email protected]
www.themilestoneuae.com