When does my business have to register for VAT in the UAE?

Mandatory VAT registration is required when a business's taxable supplies (zero-rated + standard-rated) plus imports of goods and services in the past 12 months exceed AED 375,000, OR are expected to exceed it in the next 30 days ^[1].

Voluntary VAT registration is permitted when the same total reaches AED 187,500 in the past 12 months, OR taxable expenses reach that amount ^[2].

Key practical points:

• Registration is online via the FTA EmaraTax portal.
• The threshold is calculated on a 12-month rolling basis — not the calendar year.
• Once registered, you must charge 5% VAT on standard-rated supplies, file periodic returns (typically quarterly), and keep records for 5 years.
• Failing to register on time triggers an administrative fine plus VAT due on past supplies as if you had been registered.
• A business that only supplies zero-rated goods/services may apply for an exception from registration to avoid the filing burden.

For edge cases — group registration, designated zones, mixed VAT/non-VAT business activities — consult a UAE tax advisor.