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VAT Registration for Businesses in Dubai

VAT Registration of business entities in Dubai for VAT depends on the income generated by the business. The slab for entities who will become responsible for VAT Registration are as follows:

VAT / TAX Registration Criteria For Businesses
Businesses having taxable supplies and imports above AED 375,000
Mandatory to apply for VAT registration
Businesses having taxable supplies and imports between AED 187,500 & 375,000
Can voluntarily apply for VAT registration
Businesses having taxable supplies and imports less than AED 187,500
Not required to apply for VAT registration

On which businesses does VAT apply ?

VAT-registered businesses generally:

VAT applies equally on tax-registered businesses managed on the UAE mainland and in the free zones. However, if the UAE Cabinet defines a certain free zone as a ‘designated zone’, it must be treated as outside the UAE for tax purposes. The transfer of goods between designated zones are tax-free subject to certain conditions.

  • Must charge VAT on taxable goods or services they supply
  • May reclaim any VAT they have paid on business-related goods or services
  • Keep a range of business records which will allow the government to check that they have got things right.

VAT-registered businesses must report the amount of VAT they have charged and the amount of VAT they have paid to the government on a regular basis. It will be a formal submission and reporting will be done online.

If they have charged more VAT than they have paid, they have to pay the difference to the government. If they have paid more VAT than they have charged, they can reclaim the difference.

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