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When do I have to register for VAT?

Mandatory Registration


A natural person (individual) or a legal person (company) conducting business in the UAE will have to register for VAT if their non-exempt revenues exceed AED 375,000 over the previous 12 months.

Voluntary registration


You can also register voluntarily if either your taxable revenues or expenses reach AED 187,500 over the last 12 months.

What are the benefits of a Voluntary VAT Registration?


VAT saving: a big advantage of voluntary VAT registration is the ability to claim VAT on goods and services purchased for your business (Input VAT), that is a 5% saving on taxable purchases. In addition, you can reclaim VAT incurred before the registration on inventory and assets, provided that they exist on the date of registration.


Boost your business profile, gives impression that your business is bigger and more successful.

Banks & suppliers approvals: The Tax registration number (TRN) could be required by banks or large suppliers as part of their KYC process. many organisations are unwilling to deal with companies that aren't VAT registered.


Avoid late registration penalties: If you don’t keep a careful eye on your turnover then you might not notice when it reaches the VAT mandatory registration threshold. Many businesses fail to register on time as they have only 30 days to apply after reaching the threshold, and end up suffering a late registration penalty of AED 20,000. You can simply register voluntarily to avoid any complication.

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