VAT Registration Threshold: Minimum Registration Requirement

Are you a business owner in the UAE wondering if you need to register for VAT? If so, you’re not alone. Many businesses are unsure about the VAT registration threshold and whether they need to register.

In this article, we’ll explain everything you need to know about the UAE VAT registration threshold, including who is required to register, how to register, and the benefits of voluntary registration.

Our experts at “VAT Registration UAE” can assist your business about Taxation in the UAE, book a consultation now.

VAT Registration Eligibility in The UAE

Businesses must register under VAT if the total amount of taxable supplies it makes exceeds the VAT Registration Threshold over the past 12 months, or expects the value of taxable supplies to exceed the VAT Registration Threshold within the next 30 days. VAT Registration Threshold is AED 375,000

If the total amount of taxable supplies it makes exceeds AED187500 your business is eligible for voluntary VAT registration, however If the total amount of taxable supplies it makes exceeds VAT registration threshold your business is subjected to mandatory VAT registration.

But, how can you know if your business will exceed the VAT registration threshold? There are two ways

  • Historic (looking back) 

Look back over your business’ taxable supplies for the past twelve months in UAE. Determine whether the total taxable sales of the business have exceeded the current threshold for registration. If it has, then it has to register for VAT as soon as possible.

Take note: A business in UAE is required to register as soon as it is eligible for mandatory registration; otherwise, the Federal Tax Authority will impose a fine or penalty of no less than Dh20,000 for failing to submit an application. 

  • Future (looking forward)

Let’s assume you haven’t registered for VAT yet. If you know or predict that your business’ total taxable supplies for the next days or months will exceed the mandatory registration threshold, then you can start the registration process to start applying VAT to your prices. In practice, the method is used rarely as businesses in the region has a bigger total for taxable supplies over the past twelve months compared to the following thirty days. Basically, the most common method is the historic one for identifying eligibility for VAT registration.

Minimum Registration Requirement

Businesses can also submit a registration application if they do not meet the mandatory registration requirements, if the total value of taxable supplies or taxable expenses during the past 12 months exceeds the optional registration threshold, or it is expected that the value of taxable supplies or taxable expenditures exceeds the optional registration threshold. During the next thirty days. The optional registration limit is 187,500 dirhams.

To carry out the registration tasks for VAT in the UAE, there must be tax consulting offices and recognized tax agents, such as those who work in the offices of “VAT Registration UAE”.

If your business will exceed VAT registration threshold, How you can register your business to avoid penalties? Let’s dive in.

VAT Registration in The UAE

“VAT Registration UAE” is considered as the most reliable office providing VAT registration services in the UAE. Our taxation experts can help you with:

  • VAT registration.
  • Providing advices and guidance to VAT related matters.
  • Returns Filing.
  • VAT accounting.
  • Assisting business owners with tax compliance and related planning and consultations

Best VAT & Tax consulting Firm

In the UAE, there are many firms that provide VAT services, on of the most prominent of which is “VAT Registration UAE”.

Among the most important services it provides to its clients in the UAE in the field VAT are:

  • Registering companies and individuals that meet the tax requirements with the Federal Tax Authority
  • Obtaining the tax registration number and registration certificate
  • Amending tax registration
  • Register a tax group
  • Cancellation of tax registration
  • Cancel a tax group
  • Determine the tax period
  • Modifying tax period dates
  • Submitting a tax return
  • Claim a refund of input tax
  • Conducting tax settlements
  • In addition to the tax agent’s services, which include settling tax disputes, providing technical tax support to clients, and representing and defending them before dispute committees, Farahat &Co office provides accounting services and value-added tax auditing.

Should you have enquiry, Please feel free to contact us or send your enquiry from here. also you can contact us by email or on WhatsApp number 00971526922588 or call 00971554828368