Types of Registration
Any business that surpasses the mandatory or voluntary registration thresholds may need to or have the option to register for VAT.

Mandatory Registration

A business is obligated to register if:
1. The total value of its taxable supplies and imports surpasses the mandatory registration threshold in the preceding 12 months, or
2. The business foresees that the total value of its taxable supplies and imports will exceed the mandatory registration threshold within the next 30 days.
The mandatory registration threshold stands at AED 375,000. This threshold does not apply to foreign businesses.

Voluntary Registration
A business can choose to register if it does not meet the mandatory registration criteria and:
1. The total value of its taxable supplies and imports or taxable expenses in the previous 12 months surpasses the voluntary registration threshold, or
2. The business foresees that the total value of its taxable supplies and imports or taxable expenses will exceed the voluntary registration threshold within the next 30 days.
The voluntary registration threshold is AED 187,500.