Voluntary VAT Registration in UAE

Every business entity in the United Arab Emirates (UAE) is not required to register for VAT. While the FTA (Federal Tax Authority) requires some enterprises to register for VAT, it is voluntary for small businesses, entrepreneurs, and freelancers who have not yet reached the statutory VAT registration level. All enterprises with a place of business in the United Arab Emirates that are not compelled to register for VAT are offered the opportunity to do so on a voluntary basis. The AED 187,500 Voluntary Registration Threshold is half of the mandatory registration threshold.

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    Voluntary VAT Registration Benefits in UAE

    One of the most significant advantages of voluntary registration is that your company will be eligible for VAT refunds on business supplies. Businesses having a taxable revenue of more than AED 375,000 are also required to register. Failure to comply will result in penalties. If your yearly taxable turnover exceeds AED 187,500, you have the option to register voluntarily.

    Responsibilities of Voluntary VAT Registering Businesses

    When you have applied for and been authorised for voluntary VAT registration in the UAE, you will assume the obligations and responsibilities of entities that have been required to register for VAT. In layman’s terms, this indicates that you’ll:


    Exemption from VAT registration in UAE

    Businesses whose total value of supply in member nations is less than AED 187,500 are not permitted to register for UAE VAT. Additionally, enterprises that solely make zero-rated supplies may apply for VAT registration exemptions.


    HLB HAMT – VAT Registration Experts in the UAE

    If you are considering registering for VAT voluntarily, it is critical that you have a partner to assist you with voluntary VAT registration.

    It is quite simple to not only register for VAT in the UAE, but also to stay in full compliance with all applicable standards and procedures. Our experts can also assist with VAT return filing. With years of business expertise and a squad of seasoned regulated tax agents in Dubai, you can be certain that you are working with trustworthy and knowledgeable specialists.

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