What is a VAT Number in UAE? | Guide with UAE VAT Calculator

What is a VAT Number in UAE? Complete Guide for Businesses

If you're planning to start a business or are already operating in the United Arab Emirates (UAE), understanding the VAT number in the UAE system is essential. Since VAT (Value Added Tax) was introduced in the UAE in 2018, all eligible businesses must register for VAT and obtain a valid VAT registration number.

In this article, we'll explain what a VAT number is, who needs it, how to apply, and how to use a UAE VAT calculator to stay compliant.

What is a VAT Number in UAE?

A VAT number in the UAE is a unique identification code issued by the Federal Tax Authority (FTA) to businesses that register for VAT. It's also referred to as a TRN (Tax Registration Number) and is made up of 15 digits.

Businesses must include this number on invoices, tax returns, and all other VAT-related documents. This number ensures the company is recognized as a legal VAT-registered entity.

Who Needs a VAT Number in the UAE?

You're required to register for VAT and obtain a VAT number if:

• Your business’s taxable supplies and imports exceed annually.
• You expect your turnover to exceed that threshold within the next 30 days.
• You want to register if your annual turnover is above voluntarily.

This applies to businesses in all Emirates, whether you're operating in Dubai, Abu Dhabi, or Sharjah.

How to Get a VAT Number in UAE?

Here’s a step-by-step guide to register and receive your UAE VAT number:

Step 1: Create an FTA Account

Visit the Federal Tax Authority portal and create an account.

Step 2: Prepare Required Documents

You’ll need:

• Trade license copy
• Emirates ID & passport copy of the owner
• Proof of business activities (invoices, contracts)
• Financial records (past 12 months)

Step 3: Fill out the VAT Registration Form

Log into your FTA account and complete the VAT registration form. Make sure all information is correct.

Step 4: Submit and Wait

Once submitted, the FTA will review your application. If approved, you’ll receive your VAT number by email.

UAE VAT Calculator: How to Use It

To help businesses accurately calculate their VAT liabilities, a UAE VAT calculator is a valuable tool. This calculator simplifies the process of adding or removing VAT from prices.

Benefits of Having a VAT Number in UAE

1. Legal Compliance: Avoid fines and penalties by registering your business.
2. Business Credibility: Partners and clients often prefer dealing with VAT-registered entities.
3. Input VAT Recovery: You can claim back VAT paid on business purchases.
4. Smooth Trade: Essential for import/export businesses.

Common Mistakes to Avoid

• Late registration: Results in penalties starting from.
• Incorrect filing: Always double-check figures before submitting your tax return.
• Failure to display VAT number: Must be printed on all tax invoices.

How to Verify a VAT Number in UAE?

To check if a VAT number is valid, use the FTA’s VAT Verification Tool available on their website. Enter the TRN, and the system will confirm whether it’s valid and who it’s registered.

Final Thoughts

Getting a VAT number in UAE is not just a legal requirement—it’s a sign of a well-structured business. Whether you're a new entrepreneur or an established business, staying compliant with UAE VAT laws is crucial.

With the help of a UAE VAT calculator, managing your finances and taxes becomes much easier and more transparent. Don’t wait until it's too late—check your eligibility, register on time, and make VAT compliance part of your routine.