UAE VAT Registration and De-registration Thresholds Reference 2026
Complete reference guide for UAE VAT registration thresholds, de-registration rules, and exemptions for 2026.
In this guide:
UAE VAT Registration Thresholds
- Mandatory registration threshold: AED 375,000 taxable supplies in any 12-month period
- Voluntary registration threshold: AED 187,500 taxable supplies
- Below AED 187,500: Cannot register for VAT (unless it changes)
Taxable vs. Exempt Supplies for Threshold
- Taxable supplies (count toward threshold): Standard-rated (5%) and zero-rated (0%) supplies
- Exempt supplies (do NOT count): Financial services, residential real estate
- Out-of-scope supplies: Supplies outside UAE; generally do not count toward UAE threshold
VAT De-registration Thresholds
- Mandatory de-registration: If taxable supplies fall below AED 187,500 and are not expected to exceed it
- Voluntary de-registration: If taxable supplies drop below AED 375,000 threshold
- Process: Submit de-registration application to FTA; approved if threshold conditions met
Free Zone Companies and UAE VAT
- Free zone company = UAE business: Subject to UAE VAT if making UAE-supply taxable supplies above threshold
- Export-only free zone companies: Zero-rated supplies; may register voluntarily to recover input VAT
- Designated zone: Special VAT treatment for goods entering and leaving designated free zones