VAT Registration UAE — AED 375,000 Threshold Explained

VAT in the UAE is five percent on standard-rated supplies.

Mandatory registration kicks in when taxable supplies and imports exceed three hundred seventy-five thousand dirhams over any twelve-month period.

There is also a thirty-day forward test: if you expect to exceed the threshold in the next thirty days, registration can be mandatory even if your historical average looks lower.

Voluntary registration is available from one hundred eighty-seven thousand five hundred dirhams — useful if you want to recover input VAT on setup costs.

Free zone companies are not automatically exempt. If you sell to UAE mainland customers above thresholds, you may need to register.

Apply on EmaraTax with trade licence, bank details, and turnover declaration.

Returns are typically due within twenty-eight days after each tax period end.

Check your status free with the VAT Registration Checker on kpmglobal.ae.