UAE VAT registration threshold checker
You must register for UAE VAT when your taxable supplies and imports exceed AED 375,000 in the last 12 months, or are expected to exceed it in the next 30 days alone. You can register voluntarily once supplies or taxable expenses exceed AED 187,500. Apply within 30 days of crossing the mandatory threshold.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
Standard-rated and zero-rated sales plus imports. Leave out exempt sales.
Used only for voluntary registration.
- Registration
- Voluntary (optional)
- Left before the AED 375,000 threshold
- AED 75,000.00
You can register voluntarily. It lets you reclaim VAT on costs, but you must then charge 5% and file returns.
Results are estimates for general information, not tailored advice.
Registration status by turnover
Taxable supplies in the last 12 months, with nothing unusual expected in the next 30 days.
| Last 12 months | Registration | Left before the AED 375,000 threshold |
|---|---|---|
| AED 100,000 | Not required yet | AED 275,000.00 |
| AED 190,000 | Voluntary (optional) | AED 185,000.00 |
| AED 300,000 | Voluntary (optional) | AED 75,000.00 |
| AED 375,000 | Voluntary (optional) | AED 0.00 |
| AED 380,000 | Mandatory | AED 0.00 |
| AED 1,000,000 | Mandatory | AED 0.00 |
The test is rolling: check it at the end of every month, not just at your financial year end.
How the two thresholds work
The mandatory threshold is AED 375,000 and the voluntary threshold is AED 187,500. Both are tested on a rolling basis: at the end of every month, add up your taxable supplies for the previous 12 months. There is also a forward-looking test: if you expect taxable supplies in the next 30 days alone to exceed AED 375,000 (for example, a large contract), you must register now.
Taxable supplies include standard-rated (5%) and zero-rated (0%) sales, plus imports of goods and services. Exempt supplies, such as most residential rent and local passenger transport, are left out, and so is the sale of capital assets.
- Over AED 375,000 in the last 12 months: mandatory.
- Over AED 375,000 expected in the next 30 days: mandatory now.
- Over AED 187,500 of supplies or taxable expenses: voluntary registration allowed.
- Below AED 187,500 on both: you cannot register yet.
What to do once you pass the threshold
Apply on EmaraTax within 30 days. You will need your trade licence, owner IDs, bank details and turnover evidence; our EmaraTax registration guide lists every document. Once approved you receive a 15-digit TRN and must charge 5% VAT from your effective registration date and file VAT returns.
Legal basis
We review this calculator whenever the FTA or Ministry of Finance issues a new decision or clarification.
Frequently asked questions
What is the VAT registration threshold in the UAE?
AED 375,000 of taxable supplies and imports in the last 12 months (mandatory) and AED 187,500 (voluntary).
Do exempt sales count towards the threshold?
No. Only taxable supplies count, which includes zero-rated sales such as exports. Exempt supplies and sales of capital assets are excluded.
How long do I have to register after passing AED 375,000?
30 days. Late registration carries an FTA penalty, and you may owe VAT from the date you should have registered even if you did not charge it.
Should I register voluntarily?
It can make sense if your customers are VAT registered (they recover the VAT) or you have large start-up costs to recover. If you sell mainly to consumers, registering early makes you 5% more expensive.
Do free zone companies need to register?
Yes, the same thresholds apply. Only supplies within designated zones can be outside the scope of VAT, and that depends on the type of goods.
FTA registration on EmaraTax
We prepare and submit your VAT or corporate tax registration on EmaraTax so it is approved first time, usually within days.