What is the VAT registration threshold for businesses in the UAE?

UAE VAT has two registration levels set by the Federal Tax Authority (FTA): a mandatory registration threshold and a lower voluntary registration threshold, both measured against your taxable supplies and imports over a rolling period. If your taxable turnover exceeds the mandatory threshold, you are legally required to register, charge 5% VAT and file returns. If your turnover (or taxable expenses) exceeds the lower voluntary threshold but not the mandatory one, you may choose to register voluntarily — useful if you want to recover input VAT on your costs. Below the voluntary threshold you generally cannot register. Because the thresholds use a backward- and forward-looking turnover test, you should track your taxable supplies monthly so you register at the right time and avoid penalties for late registration. The exact current threshold figures are published by the FTA and should be confirmed there before you act, as they are the basis for a legal obligation. If you are close to a threshold or run several entities, you can compare verified UAE legal and tax professionals on LEXAI to confirm your registration duty.