Tax

VAT registration thresholds explained

1 min readBizSetup24 advisory team

VAT in the UAE is charged at a standard rate of 5%. Whether you must register depends on the value of your taxable supplies and imports.

Mandatory registration

You must register if your taxable supplies and imports exceeded AED 375,000 over the past 12 months, or are expected to exceed it in the next 30 days. Apply within 30 days of reaching the threshold.

Voluntary registration

You may register voluntarily if your supplies or expenses exceed AED 187,500. Early registration lets you recover VAT paid on setup costs and can make you look more established to larger clients.

After registration

Most businesses file VAT returns quarterly through EmaraTax. You will need to issue tax invoices that meet FTA requirements and keep records for at least five years.

This article is general information, not legal or tax advice. Rules and fees change, so contact us to confirm the requirements for your business.

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