Value Added Tax (VAT)

Criteria for registering for VAT

A business must register for VAT if its taxable supplies and imports exceeds AED 375,000 per annum.

It is optional for businesses whose supplies and imports exceed AED 187,500 per annum.

A business house pays the government the tax that it collects from the customers, but at the same time it receives a refund from the government on tax that it has paid to its suppliers.

Foreign businesses may also recover the VAT they incur when visiting the UAE.

VAT-registered businesses generally:

  • must charge VAT on taxable goods or services they supply
  • may reclaim any VAT they have paid on business-related goods or services
  • keep a range of business records which will allow the government to check that they have got things right.