BorderTax & Fee Radar
Middle East Desk-reviewed Updated 10 Nov 2026

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.

Official source: Federal Tax Authority Checked 10 Nov 2026

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.

in AED
AED
= AED 225,000 / year
Monthly run-rate0 – AED 62,500
drives order count
AED

≈ 144 orders / year

Payment & tax architecture

You collect tax, remit it and keep the platform fee lower — but you own every registration and filing.

Standard rate used5%

5% VAT · planning default, not a quote.

Threshold radar

60.0%

of the registration threshold

Safe zoneRevenue test

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

Planning model
Self-Managed netAED 205,469
Merchant of Record netAED 208,800
MoR platform fee assumption5% of gross
Self-Managed payout fee assumption0.5% of gross

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 ads

Registration 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

5% VAT

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.

FAQ schema included
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 correction

Verify it yourself

Official sources

2 references

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.