All companies registered in the UAE that have supplied more than AED 375,000 to a member state in the past 12 months must register for VAT Registration UAE . Businesses must also register for UAE VAT Registration if they expect the total value of their supplies to exceed the mandatory registration threshold of AED 375,000 within the next 30 days.
Companies not domiciled in the UAE must compulsorily register for VAT Registration, regardless of the registration threshold.
| Mandatory Registration | ||
| Type of Business | Registration Threshold Conditions | |
| Resident | Value of Supplies exceeds AED 375,000 | In Previous 12 Months |
| Anticipated to exceed in next 30 days during the current financial year | ||
| Non Resident | Threshold limit is not applicable | Compulsorily registration under VAT irrespective of threshold |
Optional VAT registration in the UAE:
All companies located in UAE states where VAT registration UAE is not compulsory can choose to apply for VAT registration UAE voluntarily. This can only be done if no annual supply or taxable charges are incurred. Lower than the voluntary registration standard value. The threshold for voluntary registration is AED 187,500, which is 50% of the mandatory registration threshold.
| Voluntary VAT Registration in UAE | ||
| Value of Supplies/ Taxable Expenses exceeds AED 187,500 | In Previous 12 Months | |
| Anticipated to exceed in next 30 days during the current financial year | ||
Registration here is not mandatory and companies can decide voluntarily whether to register. The inclusion of taxable fees as a criterion for determining eligibility for voluntary registration provides all start-ups with the opportunity to register under UAE VAT Registration. This is because, although sales and purchases may be small for a start-up business, there are likely to be significant taxable expenses when opening or early in business. Therefore, making taxable fees the basis for voluntary registration will enable all start-ups to register with zero turnover.
Registration exempt from VAT:
Businesses supplying goods in member states with a value below the voluntary registration threshold of AED 187,500 will not be able to register for UAE VAT Registration. Additionally, companies engaged in the manufacturing of zero-rated supplies can only apply for exemption from VAT registration UAE.
You can also register VAT Registration in our website:
www.vat-registration-uae.com
