Freelancers and sole proprietors who make taxable supplies in the UAE are treated like any other taxable person and can register for VAT. Registration is mandatory if taxable supplies exceed AED 375,000 in the last 12 months and optional (voluntary) if supplies are between AED 187,500 and AED 375,0002.
Key steps in the VAT registration process
- Check thresholds and eligibility — confirm your taxable supplies in the previous 12 months or expected in the next 30 days to determine mandatory or voluntary registration2.
- Obtain a trade presence — many freelancers use an appropriate trade license or freelance permit from a UAE free zone or mainland authority; registration may still be required even without a license if you make taxable supplies.
- Prepare documents — passport, Emirates ID (if resident), trade license or freelance permit, bank account details, evidence of turnover (invoices, contracts) and lease or office proof where applicable.
- Register online with the FTA — submit an application through the Federal Tax Authority portal, upload documents and supporting evidence, and await the FTA decision and TRN (Tax Registration Number).
- Comply after registration — charge 5% VAT on taxable supplies, issue VAT‑compliant invoices, maintain records, file periodic VAT returns and remit any VAT due on deadlines set by the FTA3.
Practical tips and risks
- Voluntary registration can help claim input tax and improve client confidence even if you are below the mandatory threshold.
- Keep clean records of invoices and expenses from day one; the FTA requires retention and accurate filing.
- Noncompliance consequences include penalties for late registration, incorrect returns, missing payments and poor recordkeeping.
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