One Stop VAT Registration Threshold Calculation UAE

In order to determine whether the value of consumables has exceeded the mandatory VAT Registration Threshold UAE limit or voluntary registration threshold limit, the following factors need to be considered

Value of taxable supply of goods and services: Taxable supply refers to the supply of all goods and services manufactured in the UAE, in which value-added tax is levied at a standard rate of 5%, including zero-rated supplies. This does not include notified spare parts that are exempt from VAT.

Value of offset supplies: offset supplies are notified supplies. Compared with the receiver or purchaser, the value-added tax on the supplies should be collected and paid by the supplier to the buyer. When reaching the turnover threshold for VAT registration , the value of these supplies needs to be considered.

Import: The value of imported taxable goods and services that are taxable by the importer.

Taxable Turnover = Taxable Supplies + Zero-Rated Supplies Taxable Supplies: This refers to the value of all goods and services supplied within the UAE on which the standard VAT rate of 5% applies.

Zero-Rated Supplies: These are specific goods and services with a VAT rate of 0%. However, they are still included in the turnover calculation for VAT registration.

Exempt Supplies: Unlike the elements mentioned above, exempt supplies (e.g., education and healthcare services) are excluded from the calculation of taxable turnover for VAT registration.

Rose General Stores is a supermarket in the UAE that supplies groceries and all types of household products. They also import certain furniture products from other countries/regions and provide them to customers in the UAE.

Taxable Supplies (Groceries)

200000

Taxable Supplies (Door delivery charges)

25000

Zero-Rated Supplies

10000

Taxable Turnover = AED 200,000 (Groceries) + AED 25,000 (Door delivery charges) + AED 10,000 (Zero-Rated)

Taxable Turnover = AED 235,000

In this case, since the company's taxable turnover (AED 235,000) falls below the VAT registration threshold in the UAE, it doesn't need to register for VAT. However, it can register for VAT voluntarily since it is above AED 187,500.