**Mandatory VAT Registration in the UAE**
If a business has its headquarters in the United Arab Emirates and its total supplies in the member states over the previous 12 months have surpassed AED 375,000, it must undergo mandatory VAT registration in the UAE. Additionally, if a business foresees that its total supplies will exceed the mandatory threshold of AED 375,000 within the next 30 days, it is also obligated to register for VAT in the UAE.
For businesses without a registered residence in the UAE, VAT registration is mandatory, regardless of the threshold.
**Mandatory Registration Criteria**
– **Resident Businesses:** Register if the value of supplies exceeded AED 375,000 in the previous 12 months or is anticipated to exceed this threshold within the next 30 days of the current fiscal year.
– **Non-Resident Businesses:** Mandatory registration is required, and no threshold applies.
**Voluntary VAT Registration in the UAE**
For businesses situated in the UAE that do not meet the mandatory registration criteria, there is an option to voluntarily apply for VAT registration. This is possible if the annual supplies or taxable expenses incurred are equal to or exceed the voluntary registration threshold, which stands at AED 187,500, equivalent to 50% of the mandatory registration threshold.
**Voluntary Registration Criteria**
– **Value of Supplies/Taxable Expenses:** Register if they exceeded AED 187,500 in the previous 12 months or are expected to exceed this threshold within the next 30 days of the current fiscal year.
Voluntary registration is at the discretion of the business, offering flexibility to decide whether registration is necessary. The inclusion of taxable expenses as a criterion for voluntary registration accommodates startups since they may have low turnover but substantial taxable expenses incurred during their initial stages. Consequently, this allows startups to register with a minimal or even zero turnover.
**VAT Registration Exemptions**
Businesses with supplies in the member states below the voluntary registration threshold of AED 187,500 are not eligible for UAE VAT registration. Moreover, businesses engaged solely in zero-rated supplies can request exemptions from VAT registration.
You can also Register for VAT Registration on our website: