VAT registration in the UAE depends on the value of your taxable supplies and imports. Getting the timing wrong can lead to late registration penalties, so it pays to monitor your turnover closely.
Mandatory registration: AED 375,000
You must register if the value of your taxable supplies and imports exceeded AED 375,000 over the previous 12 months, or if you expect it to exceed that amount in the next 30 days.
Voluntary registration: AED 187,500
You may register voluntarily if your taxable supplies, imports or taxable expenses exceed AED 187,500. Voluntary registration can help new businesses recover input VAT on setup costs.
What counts towards the threshold?
- Standard-rated (5%) and zero-rated supplies
- Imports of goods and services subject to VAT
- Not exempt supplies, such as certain residential property and some financial services
Use our free VAT calculator
Our VAT calculator helps you add or remove 5% VAT from any amount in seconds. For a registration review, speak to our team.
