Get to know your Tax Obligations

Do you need to register for Value Added Tax?

A business resident in the UAE that makes taxable supplies within the UAE is obliged to register for Value Added Tax ("VAT") if the total value of its taxable supplies and imports exceeded the. mandatory registration threshold of AED 375,000 over the previous 12 months, or the business expects that the total value of its taxable supplies and imports will exceed the mandatory registration threshold in the next 30 days.

A business also has the option to voluntarily register for VAT if the total value of its taxable supplies and imports or taxable expenses in the previous 12 months exceeded the voluntary registration threshold of AED 187,500, or the business expects that the total value of its taxable supplies and imports or taxable expenses will exceed the voluntary registration threshold in the next 30 days.

Transactions subject to VAT are divided into 3 categories:

5%

All supplies subject to VAT at %5.

0%

All supplies subject to VAT at zero-rate.

Import of goods and services.

Which supplies are subject to %5 VAT?

All supplies that fall within the scope of UAE VAT and are not subject to the zero-...