Registering for VAT

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Any business which exceeds mandatory or voluntary registration thresholds may be required or may be able to register for VAT

The definition of business embraces most forms of activity and includes any activity conducted regularly or on an ongoing basis, e.g. industrial, commercial, professional, trade, etc

Mandatory Registration

A business must register if:

  • The total value of their taxable supplies made within the UAE exceeds the mandatory registration threshold over the previous 12 month period, or

  • They anticipate making taxable supplies with a value exceeding the mandatory registration threshold in the next 30 days.

  • The mandatory registration threshold will be AED 375,000.

Voluntary Registration

A business may apply to register if they do not meet the mandatory registration criteria and:

  • The total value of their taxable supplies or taxable expenditure in the previous 12 months exceeds the voluntary registration threshold, or

  • They anticipate that the total value of their taxable supplies or taxable expenditure will exceed the voluntary registration threshold in the next 30 days.

  • The voluntary registration threshold will be AED 187,500.

Taxable supply definition:

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.