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Can I register for VAT voluntarily if my sales are below the threshold?

Answered by TI from the Federal Tax Authority’s own law · 25 September 2026. Guidance, not tax advice: rely on the official text.

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Yes, if your taxable sales, imports or business expenses (subject to VAT) reach AED 187,500 in the past 12 months, or you expect to hit that amount in the next 30 days. Below that, you can't register.

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The detail

Under Article 17 of the VAT Decree-Law, a person not obliged to register may voluntarily register if their taxable supplies (or expenses subject to VAT) exceeded AED 187,500 in the preceding 12 months, or are expected to exceed that threshold in the next 30 days. Article 8 of the Executive Regulation confirms the AED 187,500 threshold and requires the person to prove they are carrying on a business in the UAE and intend to make taxable supplies (or qualifying out-of-state/exempt-equivalent supplies).12

What the law says

  • Article 17 of the VAT Decree-Law allows voluntary registration where taxable supplies/imports or taxable expenses exceeded, or are expected to exceed, the Voluntary Registration Threshold.1
  • Article 8 of the Executive Regulation sets the Voluntary Registration Threshold at AED 187,500 and requires proof of carrying on a business and intention to make taxable supplies.2

What it depends on

  • The threshold can be met either by taxable supplies/imports or by expenses subject to the standard rate incurred in the UAE.12
  • If registering based on an expected 30-day increase, you must be able to show evidence of the intended taxable supplies or expenses.2
  • Registration takes effect from the first day of the month following the application, or an earlier agreed date.2

Check before you rely on it

  • Add up your taxable sales/imports and VAT-bearing business expenses over the last 12 months to see if they pass AED 187,500
  • If relying on an expected future increase, gather evidence (contracts, orders) supporting the 30-day forecast
Sources (2) — read the official text
  1. 1VAT LawArticle 17Law
    Article 17 - Voluntary Registration
    Read the article
    Article 17 - Voluntary Registration Any Person who is not obligated to apply for Tax Registration according to this Chapter may voluntarily apply for Tax Registration in the following cases: 1. If he proves, at the end of any given month, that the total value of supplies referred to in Article 19 of this Decree-Law or the expenses which are subject to Tax and were incurred during the previous 12-month period, has exceeded the Voluntary Registration Threshold. 11 Article amended as per Federal Decree-Law No. 18 of 2022. Federal Decree-Law No. 8 of 2017 and its amendments – As published by the Ministry of Finance 12 2. At any time that he anticipates that the total value of supplies stipulated in Article 19 of this Decree-Law or the expenses which are subject to Tax that will be incurred during the following 30-day period, will exceed the Voluntary Registration Threshold.
    Official PDF, pp. 12–13Captured from the FTA website on 9 Sep 2026
  2. 2VAT Executive RegulationArticle 8Executive Regulation
    Article 8 – Voluntary Registration
    Read the article
    Article 8 – Voluntary Registration 8 1. The Voluntary Registration Threshold shall be AED 187,500 (one hundred and eighty-seven thousand five hundred dirhams). 2. Where a Person voluntarily applied for Tax Registration in accordance with the provisions of the Decree-Law, the Authority shall register a Person with effect from the first day of the month following the month in which the application is made, or from such earlier date as may be requested by the Person and agreed by the Authority. 3. Where a Person voluntarily applied for Tax Registration due to his expectation that his supplies under the provisions of the Decree-Law will exceed the Voluntary Registration Threshold during the next 30 (thirty) days, he should be able to provide evidence of an intention to make Taxable Supplies or incur Taxable Expenses in excess of the Voluntary Registration Threshold. 4. The Authority shall determine the evidence it may deem necessary to demonstrate eligibility for voluntary Tax Registration. 5. For the purpose of voluntary Tax Registration, the phrase “Taxable Expenses” means expenses which are subject to the Standard Rate and which are incurred in the State by a Person who has a Place of Residence in the State. 6. A Person may not register for Tax voluntarily unless he proves to the Authority that: a. he is carrying on a Business in the State, and b. he has the intention to make any of the supplies specified in paragraphs (a), (b) or (c) of Clause 1 of Article 54 of the Decree-Law.
    Official PDF, p. 7Captured from the FTA website on 9 Sep 2026
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Written by AI from the FTA sources above and checked before display. Not tax advice or official FTA information - confirm with a tax adviser before you act. Full disclaimer

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