UAE VAT Registration is applicable to the following businesses as per the rules and regulations established by the Federal Tax Authority (FTA):
- Annual turnover is more than AED 375,000 (mandatory registration)
- Yearly turnover is between AED 187,500 and AED 375,000 (voluntary registration)
- Annual turnover is less than AED 187,500 (registration not required)
DO I HAVE TO REGISTER FOR VAT?
A natural or legal person in business should register for VAT if the taxable supplies made exceed the threshold of AED 375,000 over the previous 12 months. Taxable supplies are all supplies of goods and services made by a person that are not exempt supplies which are none of the following:
Exempt financial services
Bare land
Residential buildings
Domestic passenger transport
AM I ELIGIBLE FOR REGISTERING AS A TAX GROUP?
Two or more legal persons conducting business may apply for Tax Registration as a Tax Group if:
- Each has a place of establishment or fixed establishment in the UAE.
- The persons are related parties, i.e. (not separated in financial, economic, or regulatory practices).
- One or more persons conducting business in a partnership control the others.