VAT registration depends on the value of your taxable supplies.

The two thresholds

• Mandatory registration: when your taxable supplies and imports exceeded AED 375,000 in the previous 12 months, or are expected to exceed it in the next 30 days.
• Voluntary registration: allowed when your taxable supplies or taxable expenses exceed AED 187,500.

How to check

Add up the value of your taxable supplies (standard-rated and zero-rated) month by month on a rolling 12-month basis. Exempt supplies do not count.

Deadline

Once you cross the mandatory threshold, you must apply within 30 days. Late registration carries an administrative penalty.

Should you register voluntarily?

Voluntary registration can let you recover VAT on your costs, and some clients prefer VAT-registered suppliers. But it also means regular returns and compliance work. It depends on your customers and cost base.

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General information only, not advice for your specific situation.