Definition

A Non-Taxable Person is an individual or entity that does not carry out taxable activities and is not required to register for VAT or Corporate Tax in the UAE.

Key points

• Includes employees, hobbyists, or entities making only exempt supplies.
• Cannot charge VAT or claim input VAT.
• May become taxable if business activities begin.

Practical example

A freelance artist selling non-commercial artwork privately is a non-taxable person and not required to register for VAT.

Why it matters

Helps distinguish between business and non-business activities for accurate tax registration.