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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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Quick decision guide

SituationResult
Annual turnover AED 420,000Mandatory VAT registration
Annual turnover AED 250,000Voluntary registration possible
Annual turnover AED 150,000Usually not required yet
ItemAmountNote
Mandatory registration thresholdAED 375,00012-month or 30-day test
Voluntary registration thresholdAED 187,500Taxable supplies/imports/expenses
Standard VAT rate5%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.

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Last verified: 27 أغسطس 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: 27 August 2026

Frequently asked questions

Yes when taxable supplies to mainland or thresholds exceeded.

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