Companies that do business in the UAE or are looking to set up a business in the UAE need to assess themselves to understand if they are required to register the business under VAT regulations. ATC group is one of the leading Tax consultancies based in Dubai, UAE and have assisted numerous businesses of multiple industries and scales to register their business.
Now let’s understand which businesses are required to register under VAT regulations mandatorily.
UAE-resident businesses are required to register for VAT if the total value of their taxable supplies and imports over the last 12 months, or the expected value within the next 30 days, exceeds the mandatory registration threshold of AED 375,000. Similarly, non-UAE-resident businesses making taxable supplies in the UAE must also register for VAT, regardless of the value of their taxable supplies and imports, if there is no other person obligated to pay the applicable tax on these supplies in the UAE.
Alternatively, a business can choose to register voluntarily if their taxable supplies and imports, or taxable expenses, incurred in any past period of 12 months or less exceeded, or is expected to exceed in the next 30 days, the voluntary registration threshold of AED187,500.
