Mandatory VAT Registration
A UAE-resident business must register for VAT when:
- The total value of its taxable supplies and imports exceeds AED 375,000 over the previous 12 months; or
- The business expects the total value of its taxable supplies and imports to exceed AED 375,000 in the next 30 days.
The mandatory VAT registration threshold is AED 375,000. The threshold does not apply to foreign businesses in the same way; non-resident businesses may have different registration obligations under UAE VAT rules.
Voluntary VAT Registration
A UAE-resident business that does not meet the mandatory registration criteria may be eligible for voluntary VAT registration when:
- The total value of its taxable supplies, imports, or taxable expenses exceeds AED 187,500 over the previous 12 months; or
- The business expects the total value of its taxable supplies, imports, or taxable expenses to exceed AED 187,500 in the next 30 days.
The voluntary VAT registration threshold is AED 187,500.
