VAT

When must I register for VAT?

Depends on the details: keep good documents

In short: You must register when your sales where VAT applies (official term: taxable supplies) went over 375,000 AED in the last 12 months, or will go over it in the next 30 days. You can choose to register above 187,500 AED of those sales, or of costs that had VAT on them.

The basic rule

Registration is required at 375,000 AED, looking back 12 months or forward 30 days. You must apply within 30 days of reaching it. You can choose to register from 187,500 AED.

When it is different

The test uses a rolling 12 months, not the calendar year or tax year.
Zero-rated supplies (for example many exports of services) count towards the threshold; exempt supplies do not.
Late VAT registration carries an AED 10,000 penalty, and VAT is due on supplies made from the date you should have registered.

Documents to keep

Monthly totals of taxable supplies for the last 12 months
Contracts showing upcoming large invoices

How safe is it?

Depends on the details: keep good documents Medium: the rolling test is easy to miss in a strong month.

When to ask a professional

Ask when you approach AED 375,000 or if you sell mostly abroad. Who can confirm it for your own case: an FTA-registered tax agent (a tax professional approved by the UAE tax authority), or the optional year-end review in SoloBooks.

Check it with the free calculator: VAT registration calculator →

Sources

Federal Decree-Law No. 8 of 2017 on Value Added Tax (consolidated) — Art. 13(1), 17 and 19
Executive Regulation of the VAT Decree-Law (Cabinet Decision No. 52 of 2017, as amended up to 2025) — Art. 7(1)–(2), 7(7) and 8(1)
Cabinet Decision No. 40 of 2017 on administrative penalties for tax laws, as amended by Cabinet Decision No. 129 of 2025 (in force 14 April 2026) — Table, item 3

Last verified: 19 October 2026

General information, not tax advice. Your situation may differ.

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