The UAE applies VAT at 5%. Whether you must register depends on your taxable turnover — and getting the threshold wrong (in either direction) is one of the most expensive mistakes UAE businesses make.
Mandatory VAT registration
You must register for VAT if your taxable supplies and imports exceeded AED 375,000 in the past 12 months, or are expected to exceed AED 375,000 in the next 30 days.
Voluntary VAT registration
Businesses with taxable supplies, imports or taxable expenses above AED 187,500 can register voluntarily. This is common for B2B startups that want to reclaim input VAT.
What counts as taxable turnover?
- Standard-rated supplies (5%)
- Zero-rated supplies (e.g. exports, certain healthcare and education)
- Reverse-charge imports of goods and services
- Deemed supplies
Exempt supplies (residential rent, local passenger transport, certain financial services) are NOT included in the registration threshold.
When to apply
- Within 30 days of crossing — or expecting to cross — the mandatory threshold
- Anytime once turnover or taxable expenses cross the voluntary threshold
Register for UAE VAT — TRN issued, hassle-free
Talk to a Tax Easy UAE specialist — quick callback, transparent pricing, FTA-aligned filings.
Frequently asked questions
Quick answers to common UAE vat questions.
This article is for general guidance only and reflects FTA rules as of June 2026. Always confirm your specific position with a qualified UAE tax advisor.