UAE VAT registration checker
Rules checked 6 Oct 2026
You must apply within 30 days of crossing the mandatory threshold. The late registration penalty in the UAE is AED 10,000.
Understand the result: UAE VAT registration: the AED 375,000 and AED 187,500 thresholds explained
The two UAE VAT thresholds
Whether you have to register for VAT depends on two numbers.
| Threshold | Amount | What it means |
|---|---|---|
| Mandatory | AED 375,000 | You must register if your taxable supplies and imports go over this |
| Voluntary | AED 187,500 | You may choose to register if your supplies, or your taxable expenses, go over this |
Mandatory registration applies when the value of your taxable supplies and imports in the last 12 months is more than AED 375,000, or when you expect it to be more than AED 375,000 in the next 30 days. Both tests are rolling: the 12 months are counted back from today, not by calendar year.
Voluntary registration is open when your taxable supplies or your taxable expenses go over AED 187,500. Registering lets you reclaim VAT you pay on costs, which can help a business that is still building revenue but buying equipment or stock.
What counts toward the threshold
Count your standard-rated sales (5%) and your zero-rated sales (0%). In the UAE, taxable imports also count. Leave out exempt supplies such as residential rent after its first supply or certain financial services, and leave out sales of capital assets.
If you run more than one business with related parties, the FTA can look at them together. Splitting one business into several licences to stay below the threshold does not work.
Deadlines and the penalty
Once you go over the mandatory threshold you have 30 days to apply through EmaraTax. Missing that window brings a fixed late registration penalty of AED 10,000.
Registration is also not the end of it. Once registered, you charge VAT on taxable sales, issue tax invoices, keep records for at least five years, and file returns by the 28th day after each tax period ends.
Should you register voluntarily?
It depends on who your customers are.
- Your customers are mostly VAT-registered businesses. Registering usually costs them nothing, because they reclaim the VAT you charge. You gain the ability to reclaim VAT on your own costs.
- Your customers are mostly consumers. Registering means adding 5% to prices, or absorbing it. That can make you less competitive, so the benefit of reclaiming input VAT has to outweigh it.
- You are about to cross the mandatory threshold anyway. Registering a little early gives you time to set up invoicing properly and avoids the AED 10,000 penalty.
Frequently asked questions
Do freelancers need to register for VAT?
The same thresholds apply. A freelancer whose taxable supplies pass AED 375,000 in 12 months must register.
Is the test based on revenue or profit?
Revenue from taxable supplies, not profit. A business with AED 400,000 of sales and a loss still has to register.
Can I deregister later?
Yes, in certain cases. If your taxable supplies fall below the voluntary threshold, or you stop making taxable supplies, you can apply to deregister. If they stay below the voluntary threshold for 12 months, you are expected to apply.
Saudi Arabia has the same numbers. Are the rules the same?
The thresholds are SAR 375,000 and SAR 187,500 in Saudi Arabia, and the general approach is similar. Use our Saudi VAT registration checker for Saudi sales.
What happens after I apply?
The FTA reviews the application on EmaraTax and issues a Tax Registration Number (TRN) with an effective date. From that date, you charge VAT and file returns.