The thresholds

Registration for VAT is compulsory once your taxable supplies and imports exceed AED 375,000 over the previous twelve months, or where you expect to exceed it within the next thirty days.

Registration is voluntary from AED 187,500, measured on taxable supplies and imports, or on taxable expenses.

The standard rate is 5%, in force since 1 January 2018, alongside zero-rated and exempt categories.

Why the threshold matters for invoicing

Registration gives you a TRN, and the TRN is what makes a tax invoice a tax invoice. Below the threshold and unregistered, you do not charge VAT and you do not issue tax invoices.

It also determines whether the e-invoicing mandate touches you: the obligation follows from being a taxable person under the Tax Procedures Law. Registering for VAT is what puts you in scope, not your revenue by itself.

Registering

Registration runs through EmaraTax, the Federal Tax Authority's portal, which is also where you file your VAT201 return.

Choosing software with this in mind

If you are near the threshold, it is worth choosing a package that handles VAT properly from the start rather than one that only produces documents. We list per package whether it produces VAT201 figures, in our comparison.

Official sources