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.