Registration for VAT

Eligibility for Registration

Each business’s eligibility for the VAT registration is dependent on the value of their taxable supplies. These taxable supplies include the standard-rated supplies, the zero-rated supplies, the reverse charge received, and the imported goods.

Which businesses should register for VAT?

  • Mandatory VAT registration: Businesses whose taxable supplies and imports within the UAE exceed the mandatory registration threshold of AED 375,000 during the previous year, or within the following 30 days.
  • Voluntary VAT registration: Businesses whose supplies and imports exceed the voluntary threshold of AED 187,500 during the previous year or within the following 30 days have the choice to register for VAT. Businesses can also voluntarily register for VAT if their expenses exceed the voluntary registration threshold.
  • Not allowed VAT registration: Businesses whose supplies and imports are below AED 187,500 per year.

Non-resident business

If a non-resident business is making taxable supplies in the UAE, they need to register for VAT regardless of the previously discussed thresholds.