VAT has been in the UAE since 2018, yet many business owners are still unsure whether they need to register.
Here’s the key point: if your taxable turnover exceeds AED 375,000 in any 12 months, VAT registration is mandatory. You have 30 days from the date you cross that threshold to register, not 30 days from when you realize it.
Miss the window, and you could face late registration penalties. The FTA can also backdate your VAT liability, meaning you may owe VAT on sales already made, even if you haven’t collected it from your customers.
There’s also a voluntary registration threshold of AED 187,500. Early registration can be beneficial if you have significant business expenses, as it allows you to reclaim input VAT.
On the flip side, registering too early when selling mainly to end consumers can make your pricing less competitive.
It’s a judgment call worth making with someone who knows the rules. At Taxwise, we help businesses decide the right time to register and ensure everything is set up correctly from the start.
#VAT #VATRegistration #UAE #DubaiBusiness #Taxwise #FTA #SMEDubai
I’m a Business Development Manager at Taxwise, a British-run accountancy firm based in Dubai. We support SMEs and entrepreneurs with tax compliance, bookkeeping, and financial management.
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