What to Do After VAT Registration in the UAE: A Practical Guide for Newly Registered Companies

We provide an overview of the essential steps and best practices companies must follow after completing VAT registration in the UAE, drawing on current FTA guidance and practical insights from tax professionals.

Once a business in the UAE obtains its Tax Registration Number (TRN) from the Federal Tax Authority (FTA), it formally enters the country’s value-added tax (VAT) framework, thus completing a significant step in integrating into the UAE’s evolving tax landscape. Yet, VAT registration itself represents only the beginning of an ongoing compliance process that requires consistency, precision, and awareness of regulatory expectations.

Newly registered companies must adhere to a set of procedural and administrative obligations to ensure full conformity with the UAE VAT Law. These include issuing tax-compliant invoices, maintaining accurate accounting records, applying the correct VAT rates, and meeting filing and payment deadlines. In parallel, businesses must prepare for upcoming structural changes, such as the introduction of mandatory e-invoicing, which will further modernize the country’s tax administration.

This guide provides an overview of the essential steps and best practices that VAT-registered entities in the UAE should follow after receiving their TRN, drawing on current FTA guidance and practical insights from tax professionals assisting companies through their post-registration phase.

Understanding the TRN

The TRN is a unique 15-digit identifier assigned by the FTA to every entity registered under the UAE’s VAT system. It is the foundation of a company’s tax identity and is used by the FTA to track taxable transactions, validate VAT filings, and administer compliance under Article 59 of the UAE VAT Law.

Every VAT-registered business, whether operating on the mainland or in a free zone, and regardless of structure (limited company, partnership, or sole proprietorship), must display its TRN on all VAT-related documents, including tax invoices, credit notes, VAT returns, and official correspondence. Without a valid TRN, companies cannot legally charge VAT, recover input tax, or participate in VAT-related transactions within the UAE.

How to use the TRN

Proper TRN usage is critical for operational continuity. It ensures that the FTA can correctly attribute a company’s VAT filings and payments, reducing the risk of administrative fines or invoice disputes. Businesses should therefore immediately update all invoice templates, accounting systems, and vendor communications once their TRN is issued.

It is also essential to distinguish between the TRN and the Corporate Tax Registration Number (CTRN). While both are issued by the FTA, they serve distinct functions under separate regimes:

• The TRN applies exclusively to VAT matters — invoicing, quarterly VAT return submissions, and VAT payments through the company’s designated Generated International Bank Account Number (GIBAN).
• The CTRN is used solely for corporate tax filings and correspondence related to the federal Corporate Tax Law.

Confusing the two, such as by using a CTRN on VAT invoices or returns, can result in rejected filings or delayed reconciliations. Clear internal processes, including labeling both numbers distinctly in accounting records, help businesses maintain compliance and prevent administrative complications.

Strategic importance for business operations

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From a broader perspective, obtaining a TRN also signifies formal entry into the UAE’s regulated tax environment. It not only fulfills a legal requirement but also enhances a company’s credibility among customers, investors, and government entities. A registered TRN signals operational legitimacy, allowing smoother trade, import–export activities, and eligibility for future e-invoicing integration.

For companies that have not yet registered, the FTA’s online portal provides a structured application process requiring key documents, such as a valid trade license, proof of address, and Emirates ID. Once issued, the TRN certificate should be renewed on schedule and retained securely, as it underpins all subsequent VAT compliance obligations.

Post-VAT registration compliance checklist

Once a company obtains its TRN and enters the UAE’s VAT system, it must promptly meet several post-registration obligations to remain compliant with FTA regulations. These requirements help businesses avoid penalties and ensure smooth quarterly filings and audits:

• The TRN must appear on all VAT-related documents (including invoices, tax returns, and correspondence with the FTA) as it serves as the company’s official tax identifier. Failure to display it correctly can result in rejected filings or the disallowance of input VAT claims.
• Businesses must also issue VAT-compliant invoices for every taxable supply, in line with FTA standards. Each invoice should include the supplier and customer details, invoice number, VAT rate, and total amount in AED. The standard VAT rate is 5 percent, while 0 percent or exemption applies to specific cross-border transactions and other qualifying activities under UAE VAT Law.
• Under Article 70 of the VAT Law, companies must maintain proper transaction records (such as invoices, ledgers, and receipts) for at least five years, making them available upon FTA request.
• VAT returns are filed quarterly through the FTA portal, and payments must be made by the 28th day of the following month. Late submissions or payments incur fines starting at AED 2,000 (US$7,345.00), with higher penalties for repeated non-compliance.
• Any changes in business structure, ownership, or contact details must be reported promptly to the FTA to keep registration data current.
• Finally, companies should coordinate closely with tax advisors or accounting service providers, ensuring all financial information is shared in time for accurate and punctual filings. Strong internal coordination and adherence to deadlines are key to maintaining VAT compliance and operational integrity.

How to issue a VAT-compliant invoice

For companies operating under the UAE’s VAT system, issuing VAT-compliant invoices is a critical part of regulatory adherence and ensures that input VAT can be properly recovered. Each invoice must be clearly labeled “Tax Invoice” and include several mandatory details to meet FTA requirements.

At a minimum, a compliant invoice should include:

• The supplier’s name, address, and TRN;
• The customer’s name, address, and TRN (if registered);
• A unique, sequential invoice number and the date of issue;
• A clear description of the goods or services, including quantity and unit price;
• The net amount, VAT rate, VAT amount, and total payable in AED; and
• If the invoice is issued in a foreign currency, the VAT amount must also be shown in AED, converted using the UAE Central Bank exchange rate on the date of supply, as required under Article 69 of the VAT Law.

Additionally, businesses should prepare for the forthcoming mandatory e-invoicing system, which requires invoices to be issued within 14 days of receiving payment. Ensuring timely and accurate invoice issuance under both the current and upcoming e-invoicing framework is essential for compliance, audit readiness, and smooth VAT reporting.

Understanding GIBAN and VAT payments

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In the UAE, each VAT-registered company is assigned a Generated International Bank Account Number (GIBAN) by FTA. The GIBAN is a dedicated account used exclusively for remitting VAT and corporate tax payments, ensuring that all transactions are correctly recorded and reconciled within the FTA system.

Unlike a company’s regular IBAN, which manages routine business operations such as supplier payments and customer receipts, the GIBAN is specifically tied to tax obligations. Using the GIBAN for VAT payments eliminates errors in allocation, helps maintain accurate tax records, and ensures compliance with the FTA’s reporting requirements.

Businesses should always verify payment details carefully when settling VAT liabilities and retain confirmation of transfers, as proper use of the GIBAN is essential for avoiding late payment penalties and ensuring smooth quarterly filings.

Filing VAT returns and payment deadlines

For most businesses operating in the UAE, the standard tax period is quarterly, unless the FTA assigns a monthly period (typically for high-turnover entities).

Once the tax period ends, the company must submit its VAT return via the FTA’s online portal and settle any VAT due within 28 days following the end of that period.

For example, a company that becomes registered in September 2025 would file its first return for the period September to November 2025, with both the return and payment due by 29 December 2025. This is because 28 December, which is the 28th day after the period end, falls on a weekend.

If the 28th day of any month falls on a weekend or public holiday, the next working day will be considered the due date for filing the VAT return.

Under UAE VAT rules, the tax liability arises on whichever occurs earlier: the date the invoice is issued or the date of payment. This means that both paid and unpaid invoices falling within that tax period must be included in the return.

Failing to file or pay by the deadline can lead to fines and penalties, so adhering to these timelines is essential for maintaining compliance and avoiding unnecessary costs.

Claiming input VAT

Registered businesses in the UAE are entitled to recover the input VAT paid on purchases and expenses, provided certain conditions under the UAE VAT Law are met. To qualify:

• Invoices must be correctly issued in the company’s name and display the TRN and registered address;
• The TRN certificate should be shared with all suppliers to ensure accurate invoice formatting and eligibility for recovery;
• Only valid tax invoices that comply with the FTA requirements can be used to claim input VAT;
• Expense invoices that are not VAT-compliant, or not addressed to the VAT-registered entity, will not be accepted for credit recovery; and
• Proper documentation ensures that input VAT claims align with the company’s taxable activities and can be verified during an FTA audit.

Recordkeeping and documentation

Accurate and comprehensive recordkeeping is central to VAT compliance. Businesses must retain supporting documentation to substantiate VAT filings and facilitate audits by the FTA. These records include:

• All sales and purchase invoices, credit and debit notes, and supporting vouchers;
• Copies of VAT return filings, FTA correspondence, and payment confirmations; and
• Import/export records, customs declarations, and accounting ledgers.

Under Article 70 of the VAT Law, records must be preserved for a minimum of five years, or longer for businesses involved in real estate transactions. These documents must be readily accessible in the UAE and available for inspection upon FTA request.

Maintaining a clear digital and physical archive minimizes the risk of compliance breaches and simplifies future audits.

Preparing for mandatory e-invoicing (2026–2027 Transition)

The UAE is moving toward mandatory e-invoicing to promote transparency, automate compliance, and improve tax administration. The transition will occur in two phases based on company revenue thresholds.

Starting March 31, 2027, companies with annual revenue below AED 50 million (US$13.61 million) will be required to issue electronic tax invoices using ERP systems registered with FTA-approved Accredited Service Providers (ASPs).

All e-invoicing data must be stored locally within the UAE in compliance with FTA data residency rules.

E-invoicing will also introduce a 14-day rule, requiring invoices to be issued within 14 days of payment receipt.

Preparation steps

To ensure a smooth transition to e-invoicing, businesses should:

• Assess current accounting or ERP systems for e-invoicing readiness and compliance with FTA-approved ASP requirements;
• Review data management practices to ensure all e-invoices, credit notes, and related information are securely stored within the UAE;
• Train accounting and finance teams on the new invoicing requirements, particularly the 14-day issuance rule and digital submission processes; and
• Coordinate with IT providers or external consultants to implement system upgrades and establish automated invoice validation and archiving protocols.

By proactively preparing for the e-invoicing mandate, businesses can avoid last-minute disruptions, ensure ongoing VAT compliance, and enhance overall financial governance.

Avoiding common mistakes

Newly VAT-registered companies in the UAE often encounter avoidable compliance issues that can lead to administrative penalties or rejected filings. Understanding these common pitfalls is essential for maintaining a clean compliance record from the outset.

One of the most frequent errors is the omission or incorrect display of the TRN on invoices and tax-related documents. Since the TRN serves as the company’s unique identifier within the FTA system, any discrepancy can cause delays in return processing or invalidate input VAT claims.

Another recurring issue is the late submission or payment of VAT returns. Companies should establish internal schedules and delegate clear responsibilities for the timely collection of invoices, data reconciliation, and payment execution.

Incorrect VAT rate application, such as charging 5 percent VAT on zero-rated or exempt supplies, can also trigger audit red flags. Businesses must carefully verify the VAT treatment of each transaction, particularly when dealing with cross-border services or goods.

Moreover, when invoices are issued in foreign currencies, the VAT amount must always be converted into AED using the UAE Central Bank exchange rate applicable on the date of supply. Failure to do so may result in compliance discrepancies during audits.

Finally, incomplete recordkeeping or neglecting to maintain documentation for the full statutory period of at least five years can expose companies to fines and audit challenges.

Conclusion

The UAE’s VAT regime is now an integral part of doing business in the country. Newly registered entities must ensure that post-registration compliance processes, from proper invoicing and payment to accurate recordkeeping and e-invoicing preparation,  are systematically followed.
By adhering to FTA regulations and working closely with professional tax advisors, companies can remain compliant, safeguard their input VAT recovery, and establish a strong operational foundation under the UAE’s evolving tax framework.

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