For a UAE-resident business making taxable supplies, VAT registration is generally mandatory when the value of taxable supplies and imports exceeds AED 375,000 over the previous 12 months or is expected to exceed that amount in the next 30 days. Voluntary registration may be available when the relevant taxable supplies, imports or taxable expenses exceed AED 187,500 under the same look-back or forward-looking tests.
Use the right calculation window
The threshold is not simply based on a calendar or financial year. Keep a rolling 12-month schedule and document expected contracts or orders that could cause the next-30-days test to be met. Certain supplies may be excluded or treated differently, so validate how each transaction is classified before including it.
Special cases need attention
The FTA notes that a non-resident making taxable supplies in the UAE may have a registration obligation regardless of these thresholds if no other person is responsible for accounting for VAT on those supplies. Group structures and multiple sole establishments can also affect the calculation.
Registration applications generally need to be submitted within 30 days of becoming required to register. Monitor the position regularly and keep the turnover schedule with invoices and contracts. VAT registration is separate from UAE Corporate Tax registration.
Sources: FTA VAT registration thresholds and FTA VAT Registration service.
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