Yes when taxable supplies to mainland or thresholds exceeded.
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UAE VAT Thresholds 2026 — AED 375,000 & AED 187,500 Explained
Quick answer
VAT registration is mandatory when taxable supplies and imports exceed AED 375,000 in any 12-month period or are expected to exceed that in the next 30 days. Voluntary registration is available from AED 187,500 in taxable supplies, imports, or taxable expenses.
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Open toolQuick decision guide
| Situation | Result |
|---|---|
| Annual turnover AED 420,000 | Mandatory VAT registration |
| Annual turnover AED 250,000 | Voluntary registration possible |
| Annual turnover AED 150,000 | Usually not required yet |
| Item | Amount | Note |
|---|---|---|
| Mandatory registration threshold | AED 375,000 | 12-month or 30-day test |
| Voluntary registration threshold | AED 187,500 | Taxable supplies/imports/expenses |
| Standard VAT rate | 5% | On taxable supplies |
| Late registration penalty (indicative) | AED 10,000+ | FTA penalties apply |
30-day forward test
If you expect taxable supplies to exceed AED 375,000 in the next 30 days (large contract signed), registration can be mandatory even if your 12-month average looks lower.
Full service page: vat registration uae →
Last verified: 16 أكتوبر 2026
Fees and rules traced to official UAE authorities. KPM Global review cadence: monthly or on FTA/GDRFA updates.
Official source basis
Federal Tax Authority (tax.gov.ae) public guidance. KPM Global simplified this for business owners — not a substitute for official FTA advice or EmaraTax records.
Fees & rules last reviewed: 16 October 2026
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