VAT Decision Helper
Answer four questions to understand your likely VAT registration status.
What is your expected annual revenue (or taxable supplies)?
Include all goods and services sold, even if not yet invoiced.
How this helper works
This helper asks four quick questions about your expected turnover, where your business is based, who your clients are, and whether you import goods into the UAE. Your answers are checked against the registration thresholds — AED 375,000 mandatory, AED 187,500 voluntary — and the nature of your supplies to indicate whether VAT registration is likely mandatory, voluntary, or not yet required. The result is directional guidance to help you plan; it is not tax advice, and borderline cases deserve a professional review.
UAE VAT registration basics
The UAE applies VAT at a standard rate of 5% to most goods and services. Registration becomes mandatory once your taxable supplies exceed AED 375,000 in the trailing 12 months, or when you expect to cross that threshold within the next 30 days. Voluntary registration is available from AED 187,500 — often worthwhile if you incur VAT on expenses you could recover.
Not all revenue is treated the same: zero-rated supplies, such as qualifying exports, carry 0% VAT yet still count toward the threshold and allow input VAT recovery, while exempt supplies fall outside the regime and block recovery on related costs. Once registered, most businesses file returns quarterly, and late registration attracts a penalty of AED 10,000 — so track your rolling 12-month turnover closely.
Who this is for
Built for founders planning a UAE setup, free zone and mainland owners approaching the thresholds, freelancers and consultants invoicing UAE clients, and e-commerce sellers importing goods. If your situation involves designated zones, mixed supplies, or significant imports, treat the result as a starting point for a conversation with a tax advisor.