VAT in the UAE — when should your company register?
One rate and two thresholds for registration. Here is when you must register, when you may, and how the step is done.
The key numbers
| Item | Value |
|---|---|
| The tax rate | 5% |
| Mandatory registration | When taxable supplies and imports exceed AED 375,000 a year |
| Voluntary registration | When AED 187,500 a year is exceeded |
The Federal Tax Authority states that what counts is the last 12 months, or the expectation of exceeding the threshold within the next thirty days.
Mandatory and voluntary registration
If your taxable supplies and imports exceed AED 375,000, you must register. If you haven't reached that threshold but you have exceeded AED 187,500 of taxable supplies or expenses, you may register voluntarily.
The government portal states that non-resident companies making taxable supplies in the UAE register regardless of their value.
How does registration work?
- 1
Check your business size
Calculate the taxable supplies in the last 12 months.
- 2
Prepare the documents
The license and the documents that prove your activity and revenue.
- 3
Register with the Authority
Through the Federal Tax Authority's e-services after creating an account.
- 4
Meet the returns
Returns are filed periodically, and we remind you of the deadlines.
Source of the information
Source: u.ae and the Federal Tax Authority tax.gov.ae. We consulted them on 8 October 2026, and the numbers and conditions may change; we confirm them for you in the consultation.
Talk to a lawyer before you sign anything.
Thirty minutes with a formation adviser — we understand your venture and map the right path and the real cost. No obligation.
Common questions, clear answers.
What is the VAT rate in the UAE?
5%.
Is registration mandatory for every company?
No, it is required when taxable supplies and imports exceed AED 375,000 a year. Above AED 187,500 you may register voluntarily.
Can I register without reaching the mandatory threshold?
Yes, voluntary registration is available once you exceed AED 187,500.
Thirty minutes with a formation adviser. No obligation.
Your first consultation is free.
Tell us about your idea — we reply within working hours with a clear roadmap.
Request a callback
Fill the form and our adviser will call you back.