Understanding when VAT registration becomes mandatory is an important responsibility for businesses operating in the UAE.

Waiting until turnover has significantly exceeded the applicable threshold can create unnecessary compliance problems.

Mandatory VAT Registration

For UAE-resident businesses, the FTA currently states that VAT registration is mandatory when taxable supplies and imports exceed AED 375,000 during the previous 12 months, or are expected to exceed the threshold within the next 30 days.

Voluntary VAT Registration

Eligible UAE-resident businesses may voluntarily register where taxable supplies and imports, or taxable expenses, exceed AED 187,500 during the relevant period or are expected to exceed that amount within the next 30 days.

Different rules can apply to non-resident businesses making taxable supplies in the UAE.

Registration Process

The FTA's current VAT registration process is conducted through EmaraTax and involves creating/accessing the taxable person profile, selecting VAT registration and completing the required application.

How Eccuracy Can Help

Eccuracy can assist businesses in reviewing their VAT position, preparing financial information and supporting the VAT registration process.

This article is provided for general informational purposes and does not constitute tax, legal or professional advice. UAE tax legislation and administrative requirements may change. Businesses should assess the rules applicable to their specific circumstances.