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Registration For VAT

A business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxable supplies and imports (or taxable expenses) is in excess of the voluntary registration threshold of AED 187,500.

Registration For VAT

Types of Registration
Any business which exceeds mandatory or voluntary registration thresholds may be required or may be able to register for VAT
  • Mandatory Registration

    A BUSINESS MUST REGISTER IF:


    The total value of its taxable supplies and imports exceeds the mandatory registration threshold over the previous 12 months, or
    The business anticipates that the total value of its taxable supplies and imports will exceed the mandatory registration threshold in the next 30 days.
    The mandatory registration threshold is AED 375,000. This threshold is not applicable to foreign businesses.

  • Voluntary Registration
    A BUSINESS MAY APPLY TO REGISTER IF IT DOES NOT MEET THE MANDATORY REGISTRATION CRITERIA AND:

    The total value of its taxable supplies and imports or taxable expenses in the previous 12 months exceeds the voluntary registration threshold, or

    The business anticipates that the total value of its taxable supplies and imports or taxable expenses will exceed the voluntary registration threshold in the next 30 days.

    The voluntary registration threshold is AED 187,500.
  • What is a Taxable Supply?

    For the purposes of understanding whether a registration obligation exists, a taxable supply refers to a supply of goods or services made by a business in the UAE that may be taxed at a rate of either 5% or 0%. Imports are also taken into consideration for this purpose, if a supply of such goods or services would be taxable if made within the UAE.


    Learn More

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Page last updated: : Jan 07, 2022
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