VAT Registration Eligibility in UAE | Gupta Accountants

​In the UAE, businesses must meet certain criteria to be eligible for VAT registration.

​Mandatory VAT Registration:

A company is required to register for VAT if its taxable supplies and imports exceed AED 375,000 (mandatory registration threshold) during the previous 12 months or are expected to exceed this threshold in the next 30 days.

​Voluntary VAT Registration:

Businesses with taxable supplies between AED 187,500 and AED 375,000 can opt for voluntary registration if they wish to reclaim VAT on their business purchases.

​Exemptions from VAT Registration:

Some supplies, such as certain residential properties, financial services, and local passenger transport, are exempt from VAT. Businesses dealing exclusively in these exempt supplies are not required to register for VAT, regardless of their turnover.

It is important for businesses to assess their eligibility carefully, as compliance with VAT regulations is crucial for smooth business operations within the UAE market.