What is the voluntary VAT registration 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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AED 187,500. If your taxable sales/imports or VAT-bearing expenses in the past 12 months (or expected in the next 30 days) exceed this, you can choose to register for VAT even though you're not required to.

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The detail

The Voluntary Registration Threshold under the UAE VAT Executive Regulation is AED 187,500, being 50% of the Mandatory Registration Threshold set under the GCC Framework Agreement. A person may register voluntarily if their taxable supplies/imports, or their taxable expenses, exceed this threshold in the preceding 12 months, or are expected to exceed it in the next 30 days.1 2

What the law says

The Voluntary Registration Threshold is fixed at AED 187,500 under Article 8 of the Executive Regulation.2
Under the GCC Common VAT Agreement, the Voluntary Registration Threshold is set at 50% of the Mandatory Registration Threshold.1
Registration takes effect from the first day of the month following the application, or an earlier date agreed with the FTA.2

What it depends on

The person must prove they carry on a business in the UAE and intend to make taxable supplies (or qualifying out-of-state or specified exempt-equivalent supplies).2
'Taxable Expenses' for this purpose means standard-rated expenses incurred in the UAE by a UAE resident.2
If registering based on anticipated turnover/expenses, the person must be able to evidence the expectation of exceeding the threshold within 30 days.2

Check before you rely on it

Check whether your taxable supplies/imports or standard-rated expenses in the last 12 months exceeded AED 187,500.
If relying on future turnover, keep evidence supporting the expectation of exceeding AED 187,500 within 30 days.

Sources (2) — read the official text

1Common VAT Agreement of the States of the Gulf Cooperation Council…Article 51GCC Agreement

Read the article
Article 51 Voluntary Registration 1. A Person who is not required to be registered under Article 50(1) of this Agreement who resides in any Member State may request to be registered therein, provided that the value of his annual supplies in that Member State is not less than voluntary registration threshold. 2. A Member State may allow the registration provided that the annual expenses of a person who is not obliged to register in that State exceed the Voluntary Registration Threshold in accordance with the conditions and rules determined by that State. 3. The Voluntary Registration Threshold is 50% of the Mandatory Registration Threshold. Page 17 of 26 26 من17 صفحة

Official PDF, p. 17Captured from the FTA website on 9 Sep 2026
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

Helpful?

What the law says:
- The Voluntary Registration Threshold is fixed at AED 187,500 under Article 8 of the Executive Regulation. [2]
- Under the GCC Common VAT Agreement, the Voluntary Registration Threshold is set at 50% of the Mandatory Registration Threshold. [1]
- Registration takes effect from the first day of the month following the application, or an earlier date agreed with the FTA. [2]

What it depends on:
- The person must prove they carry on a business in the UAE and intend to make taxable supplies (or qualifying out-of-state or specified exempt-equivalent supplies). [2]
- 'Taxable Expenses' for this purpose means standard-rated expenses incurred in the UAE by a UAE resident. [2]
- If registering based on anticipated turnover/expenses, the person must be able to evidence the expectation of exceeding the threshold within 30 days. [2]

Check before you rely on it:
- Check whether your taxable supplies/imports or standard-rated expenses in the last 12 months exceeded AED 187,500.
- If relying on future turnover, keep evidence supporting the expectation of exceeding AED 187,500 within 30 days.

Sources:
1. Common VAT Agreement of the States of the Gulf Cooperation Council… — Article 51
2. VAT Executive Regulation — Article 8

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

What is the voluntary VAT registration threshold?

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