United Arab Emirates VAT registration threshold calculator
Estimate UAE VAT at the AED 375,000 mandatory threshold or the AED 187,500 voluntary threshold, with a forward-looking 30-day check.
Threshold
375,000 AED
Rolling 12-month taxable turnover
Standard rate
5% VAT
Planning default
Registration window
30 days
After the trigger
Zero-latency estimate
Your VAT position
Runs entirely in your browser. Adjust revenue, order size and payout model — no income data leaves this page.
≈ 144 orders / year
Payment & tax architecture
You collect tax, remit it and keep the platform fee lower — but you own every registration and filing.
5% VAT · planning default, not a quote.
Threshold radar
60.0%
of the registration threshold
Headroom
AED 150,000
Registration window
30 days
Runway at run-rate
8.0 months
You still have headroom. Re-check the threshold monthly and keep customer-location evidence for every sale.
Annual tax
AED 11,250
5.0% planning rate on AED 225,000
FX friction
AED 7,156
2.2% FX drag + AED 2,206 compliance
Net take-home
AED 205,469
Self-Managed · 91.3% margin
Payout architecture comparison
Difference
+AED 3,331
Merchant of Record keeps more at this revenue level
Merchant of Record fee assumption: 5% of gross. Tax collection and remittance are handled by the provider; the tax liability card shows what you would owe under the self-managed model. FX friction uses a fixed 2.2% planning assumption.
Runway assumes a flat monthly run-rate. Seasonal spikes, refunds and marketplace-facilitator sales can move the real registration date.
Official Compliance Note
Neutral · no adsRegistration is a deadline-driven process, not a one-click switch. Confirm the current registration window, effective date and any local representative requirement before you file.
This slot is intentionally neutral. No paid placement is active. Set affiliates.enabled to true in site.config.json to activate reviewed partner cards.
Cross-market view
How AED 225,000 per year compares
Same annual revenue, converted at the site FX baseline
Planning estimates, not tax advice. Threshold AED 375,000. FX baseline: 2026-11-01.
How we calculate →The rule, unpacked
What the VAT threshold actually measures
Mandatory VAT registration applies when taxable turnover exceeds AED 375,000 in the previous 12 months or is expected to exceed it in the next 30 days. Voluntary registration is available from AED 187,500.
Measurement basis
Rolling 12-month taxable turnover
Voluntary registration is available at AED 187,500.
Registration timing
30-day window
Confirm the effective date and any local agent requirements with Federal Tax Authority.
Who must register
Businesses with taxable turnover above AED 375,000 in the previous 12 months or expected to exceed it in the next 30 days.
Exceptions & edge cases
Free-zone businesses need to review the specific free-zone rules. Zero-rated and exempt supplies still count differently in the turnover test.
Conditions to check
- Voluntary registration is available at AED 187,500.
- The forward-looking 30-day test can trigger registration before the trailing threshold is crossed.
Rate context
The calculator uses a planning rate, not every rate
Zero-rated and exempt supplies exist; the calculator uses the standard rate.
The estimate is useful for sizing exposure, not for preparing a return. Product-specific rates, exemptions, reverse-charge rules and place-of-supply tests can change the amount you actually owe.
Source-backed answers
UAE VAT: common questions
Answers are tied to the linked official source and the conditions shown above.
01 What counts toward the VAT threshold in United Arab Emirates?
Count taxable supplies, including zero-rated supplies where applicable. The test uses the previous 12 months or a forward-looking 30-day projection.
02 When does VAT registration take effect?
Register within 30 days of meeting the threshold. Confirm the FTA's process and effective date before invoicing.
03 Does selling digital services change the VAT threshold?
Digital services supplied to UAE consumers are generally subject to VAT. Non-resident businesses may need to register and account for VAT under place-of-supply rules.
04 Is this United Arab Emirates tax calculator official tax advice?
No. It is a planning estimate based on the published threshold and rate linked on this page. Your products, customer location, marketplace sales and business structure can change the outcome. Confirm the current rule with the official source or a local adviser before registering, pricing or filing.
General information only — confirm the current rule with the official source.
Report a correctionVerify it yourself
Official sources
- Primary
VAT registration
Federal Tax Authority · checked 10 Nov 2026
- Secondary
VAT legislation
Federal Tax Authority · checked 10 Nov 2026
Found a change? Email corrections@bordertax.example.com with the source URL and the amount you believe is correct. Corrections are logged in the public changelog.