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VAT Registration

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Accounting & Tax

Value Added Tax (VAT)

Value Added Tax (VAT) registration is mandatory for businesses and individuals operating in the UAE. Taxable supplies, which refer to goods or services provided by businesses in the UAE, are subject to a VAT rate of either 5% or 0%. Imports are also considered for VAT purposes.

Terms of VAT Registration Process

Mandatory Registration

VAT registration is mandatory for both free zone and mainland companies whose annual turnover exceeds AED 375,000. Companies are also required to register if the total value of their taxable supplies within the UAE surpasses the mandatory registration threshold. Additionally, registration is mandatory if the company anticipates making taxable supplies exceeding the mandatory registration threshold within the next 30 days.

Voluntarily Registration

Companies with an annual turnover between AED 187,500 and AED 375,000 have the option to register for VAT voluntarily. Voluntary VAT registration is also applicable to companies whose total value of taxable supplies or expenditures in the last 12 months exceeds the voluntary registration threshold. Companies may also choose to register voluntarily if they anticipate that their total value of taxable supplies or expenditures in the last 12 months will exceed the voluntary registration threshold.