Is Corporate Tax mandatory for all UAE businesses?

Yes. Every UAE business that is a taxable person must register for Corporate Tax with the FTA and file a return, whatever its profit. Taxable income up to AED 375,000 is taxed at 0% and income above that at 9%. Businesses with revenue of AED 3 million or less may elect Small Business Relief for eligible tax periods. Free zone companies must meet the Qualifying Free Zone Person conditions to benefit from the 0% rate.

How long does VAT registration take in the UAE?

VAT registration in the UAE typically takes 3 to 5 working days when all documents are correctly submitted to the Federal Tax Authority (FTA) via the EmaraTax portal. Marifah Tax Advisory completes VAT registrations within this timeframe and handles the entire process on your behalf.

What documents are needed for Corporate Tax registration in UAE?

For UAE Corporate Tax registration, you need: Trade Licence copy, Memorandum of Association (MOA), Emirates ID and passport copies of all owners/directors, company bank account details, and financial year start date. Our team guides you through the exact checklist and submits everything to the FTA on your behalf.

Can free zone companies avoid Corporate Tax in UAE?

Free zone companies are NOT automatically exempt from UAE Corporate Tax. To qualify for the 0% Qualifying Free Zone Person (QFZP) rate, your company must meet 5 specific conditions set by the FTA — including deriving income only from qualifying activities and maintaining adequate substance. We assess your eligibility and structure your compliance accordingly.

What happens if I file VAT returns late in UAE?

Late VAT return filing in UAE attracts an immediate penalty of AED 1,000 for the first offence, rising to AED 2,000 for repeated violations within 24 months. Additional penalties of 2% per month apply on any unpaid VAT. The FTA may also block your EmaraTax account. Marifah handles all filing deadlines proactively so you never face these penalties.

VAT7 min read

How to File VAT Return UAE — Step by Step

A complete step-by-step guide to filing your UAE VAT return on EmaraTax — deadlines, boxes explained, common errors, and penalties to avoid.

VAT Return Filing — Overview

Every VAT-registered business in the UAE must file a VAT return with the Federal Tax Authority (FTA) at the end of each tax period. For most businesses, the tax period is quarterly. The return must be filed and any tax due must be paid within 28 days of the end of the tax period. VAT returns are filed exclusively through the EmaraTax portal at tax.gov.ae.

Before You File — Prepare These

All sales invoices issued during the period (output VAT)

All purchase invoices with valid VAT numbers (input VAT)

Import declarations / customs documents

Credit notes issued or received

Reverse charge records for imported services

Bank statements for reconciliation

Step 1 — Log In to EmaraTax

Go to tax.gov.ae and log in to your EmaraTax account using your registered UAE Pass or username and password. Select your VAT registration (TRN) from the dashboard and click 'File Return' for the relevant tax period.

Step 2 — Complete Box 1 to Box 3 (Sales / Output VAT)

Box 1: Enter the total value of your standard-rated supplies (sales at 5% VAT) and the VAT collected. Box 2: Enter zero-rated supplies (exports, international transport, certain food items, etc.) — these are taxable but at 0%. Box 3: Enter any exempt supplies (residential property sales, local passenger transport, bare land) — no VAT charged and no input VAT recovery on related costs.

Step 3 — Complete Box 4 to Box 7 (Purchases / Input VAT)

Box 4: Total standard-rated expenses/purchases made during the period and the input VAT you are recovering. Box 5: Enter imports subject to VAT paid at customs. Box 6: Enter imports of services subject to reverse charge mechanism — declare both output and input VAT here. Box 7: Report any out-of-scope supplies not subject to UAE VAT.

Step 4 — Review the Net VAT Position

EmaraTax will automatically calculate your net VAT due (output VAT minus input VAT). If output exceeds input, you owe that amount to the FTA. If input exceeds output, you have a VAT credit — you may carry it forward to the next period or submit a refund request. Always cross-check the calculated figure against your own accounting records before submitting.

Step 5 — Submit and Pay

Once you are satisfied the return is accurate, click 'Submit'. Payment of VAT due must reach the FTA within 28 days of the tax period end. Payment methods accepted on EmaraTax include credit/debit card, local bank transfer via GIBAN, eDebit, and e-Dirham card. The payment deadline is the same as the filing deadline — you cannot file and pay separately on different dates.

Common Mistakes That Trigger FTA Penalties

Claiming input VAT on non-business expenses (e.g., entertainment, personal vehicles)

Missing the 28-day filing deadline — AED 1,000 first offence, AED 2,000 repeat

Failing to report reverse charge on imported services

Issuing non-compliant tax invoices (missing TRN, wrong VAT amount)

Errors in Box 3 (classifying standard-rated supplies as exempt)

Late payment penalty: 14% per annum from 14 April 2026 (Cabinet Decision No. 129 of 2025)

Nil Returns — Do Not Skip

Even if you made no sales and no purchases in a quarter, you must still file a nil VAT return before the deadline. Failing to file a nil return carries the same AED 1,000 penalty as missing any other return.

Let Marifah Handle Your VAT Filing

Our team prepares and submits accurate VAT returns on your behalf — every quarter, on time, with full reconciliation. Never miss an FTA deadline again. Contact us for a free consultation.

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