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Mandatory RegistrationFor businesses based in the UAE, registration is mandatory if:
Voluntary Registration
Businesses can also choose to register voluntarily if:
Imagine you run an online store selling handmade jewelry. If your sales within the UAE amounted to AED 400,000 in the last year, you must register for VAT. On the other hand, if your sales were AED 200,000, you could opt for voluntary registration to claim input VAT on your business expenses.
Why VAT Registration is Important?
Registering for VAT ensures compliance with UAE law and helps avoid penalties. It also allows businesses to reclaim VAT on purchases, reducing overall costs.
- Your total taxable supplies and imports exceeded AED 375,000 in the past 12 months.
- You expect your total taxable supplies and imports to exceed AED 375,000 in the next 30 days.
Voluntary Registration
Businesses can also choose to register voluntarily if:
- Your taxable supplies and imports exceed AED 187,500.
- You expect your taxable supplies and imports to exceed AED 187,500 in the next 30 days.
Imagine you run an online store selling handmade jewelry. If your sales within the UAE amounted to AED 400,000 in the last year, you must register for VAT. On the other hand, if your sales were AED 200,000, you could opt for voluntary registration to claim input VAT on your business expenses.
Why VAT Registration is Important?
Registering for VAT ensures compliance with UAE law and helps avoid penalties. It also allows businesses to reclaim VAT on purchases, reducing overall costs.
