What is the VAT registration threshold in the UAE?
VAT registration in the UAE is mandatory when your taxable supplies and imports exceed AED 375,000 over the previous 12 months, or you expect them to within the next 30 days. Voluntary registration is open from AED 187,500, and taxable expenses can count too. Non-resident businesses are not subject to the threshold. [1][2][4]
Key takeaways
- The mandatory registration threshold is AED 375,000 and the voluntary threshold is AED 187,500. [1][4]
- Mandatory registration is triggered by the previous 12 months or by an expectation for the next 30 days, so a new business can be caught before it has any history. [1][3]
- Taxable supplies include zero-rated and deemed supplies but not exempt supplies, and the sale of your own capital assets is left out. [3][5]
- A non-resident making taxable supplies in the UAE can be required to register regardless of value if nobody else must account for the VAT. [1][3][6]
- You must apply within 30 days of becoming liable, and the listed penalty for missing that deadline is AED 10,000. [2][4][7]
What is the VAT registration threshold in the UAE?
There are two thresholds. The Executive Regulation sets the Mandatory Registration Threshold at AED 375,000 and the Voluntary Registration Threshold at AED 187,500. [4] The FTA states that a business must register above the first figure and may choose to register above the second. [1]
| Point | Mandatory | Voluntary |
|---|---|---|
| Threshold | AED 375,000 [4] | AED 187,500 [4] |
| What is measured | Taxable supplies and imports [1] | Taxable supplies and imports, or taxable expenses [1] |
| Look-back test | Exceeded over the previous 12 months [1] | Exceeded over the previous 12 months, if the mandatory criteria are not met [1] |
| Forward test | Expected to exceed in the next 30 days [1] | Expected to exceed in the next 30 days [1] |
| Wording | A business "must register" [1] | A business "may apply" [1] |
| Exit | Not applicable | No deregistration application within 12 months of registration [3] |
If you are still deciding between the two routes, our guide on how to deregister for VAT in the UAE explains why the 12-month lock on voluntary registrants matters.
Which supplies count towards the threshold?
The Decree-Law counts the value of taxable goods and services, imported goods and services that would not be exempt if supplied in the UAE, and taxable supplies of any business you acquired. [3] The FTA User Guide adds that turnover includes standard-rated, zero-rated and deemed supplies, and excludes exempt supplies. [5]
- Capital assets: the supply of capital assets belonging to the person is not counted. [3]
- Related parties: taxable supplies made by related parties count in the cases stated in the Executive Regulation, and where businesses are artificially segregated their supplies are aggregated. [3][4]
- Sole establishments: the threshold is calculated on the combined value of all sole establishments owned by the same natural person, under one TRN. [2]
- Branches: all branches sit under a single TRN and one registration. [2]
- Voluntary route only: taxable expenses means expenses subject to the standard rate, incurred in the State by a person with a place of residence there. [4]
What period are your supplies counted over?
The look-back period is the previous 12 months, and there is a separate forward-looking test of the next 30 days. [1][3] If either test shows you have crossed AED 375,000, you are required to register. The Decree-Law frames the voluntary look-back test as measured at the end of any given month. [3]
The registration date follows from the test. Where supplies exceeded the threshold in the previous 12 months, the FTA registers the person from the first day of the month after the month in which registration became required, whether or not the person applies. [4] Where the person expects to exceed it within 30 days, registration takes effect from the date there are reasonable grounds for believing so. [4]
What should a new business with no trading history look at?
A new business has no 12-month record, so the forward-looking test does the work: if you expect taxable supplies and imports to exceed AED 375,000 in the next 30 days, you must register. [1][4] If you expect to pass only AED 187,500, registration is voluntary and you must supply evidence. [1][4]
For a voluntary application based on the next 30 days, the Executive Regulation requires evidence of an intention to make taxable supplies or incur taxable expenses above the threshold, and proof that you are carrying on a business in the State. [4] The FTA User Guide lists accepted evidence for turnover, including a revenue forecast with evidence such as a local purchase order or contract. [5]
The rules apply to any person carrying out an economic activity in the UAE, even without a trade licence. [2] Our guide on how to register for VAT in the UAE covers the documents and portal steps.
When must a non-resident register for VAT?
A non-resident must register if it makes supplies in the UAE and no other person is obliged to pay the due tax on them there. [3] The FTA says the AED 375,000 threshold does not apply to foreign businesses, and u.ae says registration is needed regardless of value. [1][6]
The FTA User Guide gives an example of a business resident outside the GCC with no other person accounting for UAE VAT on its behalf, such as when its customers are private individuals. [5] The Executive Regulation registers a non-resident from the date it started making supplies in the State, and a non-resident cannot count imports where the importer must account for the tax. [3][4]
How do you apply, and what if you are late?
You must submit your registration application to the FTA within 30 days of being required to register, through the EmaraTax platform. [2][4] The FTA lists the service as free, with an estimated 45 minutes to submit and 20 business days for the FTA to complete a full application. [2]
If you do not apply, the FTA can register you from the date you first became liable and impose penalties. [4] Cabinet Decision No. 40 of 2017, as amended, lists AED 10,000 for failing to submit a registration application within the timeframe. [7] A late registrant must also account for the due tax on all taxable supplies and imports made before registering. [4] For portal steps, see our VAT registration guide, and for penalty options see how to reduce or waive FTA penalties in the UAE.
How GCC Filings can help
GCC Filings Bookkeeping LLC is a Dubai firm. Its VAT Return Filing and Tax Compliance service handles VAT registration, quarterly VAT return filings (Form 201), voluntary disclosures and audits. If you are unsure whether you have crossed a threshold, we can review your figures with you.
See the full VAT and tax compliance service page, browse all services, or read more on our blog. To get in touch, call +971 4 557 4802, email [email protected], or visit Office 2403, East Wing, Latifa Towers, Sheikh Zayed Road, Dubai.
Limits of this guide
Tax rules, thresholds and deadlines change, and your facts may differ. Always confirm the current position on the Federal Tax Authority website at tax.gov.ae. This article is general information and not tax or legal advice.
Frequently asked questions
Is the AED 375,000 threshold calculated per company or per owner?
It depends on the structure. The FTA says all sole establishments owned by the same natural person are registered under one TRN, with the threshold based on their combined activity. A company with several branches registers once under a single TRN. Related businesses split artificially may also be aggregated. [2][4]
Do exempt supplies count towards the VAT threshold?
No. The Decree-Law defines a taxable supply as one that does not include an exempt supply, and the FTA VAT User Guide says to include standard-rated, zero-rated and deemed supplies but not exempt supplies when stating turnover. The sale of your own capital assets is also left out. [3][5]
Does the threshold apply to a business based outside the UAE?
Not in the same way. The FTA says the mandatory threshold is not applicable to foreign businesses, and u.ae states that a non UAE-based business making taxable supplies in the UAE must register regardless of value, where no other person is obliged to pay the due tax on those supplies. [1][6]
Can a brand-new business register voluntarily?
Yes, if it meets the conditions. A voluntary applicant expecting to pass AED 187,500 in the next 30 days must give evidence of an intention to make taxable supplies or incur taxable expenses above that figure, and must prove it is carrying on a business in the State. [4]
What is the penalty for registering late?
Cabinet Decision No. 40 of 2017, as amended, lists AED 10,000 for failing to submit a registration application within the timeframe in the tax law. A late registrant must also account for the due tax on all taxable supplies and imports made before registering. [4][7]
Can a business with only zero-rated supplies avoid registration?
Possibly. The Decree-Law says the FTA may except a taxable person from mandatory registration on request if its supplies are only subject to the zero rate. The person must tell the FTA of changes to the business that would make it subject to tax. It is the FTA's decision. [3]
Sources
- Federal Tax Authority (UAE). Registration For VAT (VAT topics page), 2026. https://tax.gov.ae/en/taxes/Vat/vat.topics/registration.for.vat.aspx
- Federal Tax Authority (UAE). VAT Registration (service page), 2026. https://tax.gov.ae/en/services/vat.registration.aspx
- Federal Tax Authority (UAE). Federal Decree-Law No. (8) of 2017 on Value Added Tax (unofficial translation), 2017. https://tax.gov.ae/DataFolder/Files/Pdf/VAT-Decree-Law-No-8-of-2017.pdf
- Federal Tax Authority (UAE). Cabinet Decision No. 52 of 2017 and its amendments (Executive Regulation of the VAT Decree-Law), 2024. https://tax.gov.ae/Datafolder/Files/Legislation/Executive%20Regulation%20of%20Federal%20Decree%20Law%20No%208%20of%202017%20-%20Publish%20-%2004%2010%202024.pdf
- Federal Tax Authority (UAE). VAT User Guide: Registration, Amendments and De-registration, 2021. https://tax.gov.ae/DataFolder/Files/Pdf/VAT%20User%20Guide_English_V9.0%2016%2011%202021.pdf
- UAE Government Portal (u.ae). Value added tax (VAT). https://u.ae/en/information-and-services/finance-and-investment/taxation/vat/valueaddedtaxvat
- Federal Tax Authority (UAE). Cabinet Decision No. 40 of 2017 and its amendments: Administrative Penalties for Violation of Tax Laws, 2025. https://tax.gov.ae/Datafolder/Files/Legislation/2025/Cabinet%20Decision%20No.%2040%20of%202017%20and%20its%20amendments%20-%20publishing%2011%202025.pdf
Accessed 20 October 2026. General information only; confirm current rules with the FTA.