Definition

The Taxable Supplies Threshold is the annual value of taxable sales and imports that determines whether a UAE business must register for VAT.

Key points

• AED 375,000: mandatory registration threshold.
• AED 187,500: voluntary registration threshold.
• Includes all taxable and zero-rated supplies.

Practical example

A Dubai business with AED 400,000 in taxable sales must register for VAT since it exceeds the mandatory threshold.

Why it matters

Understanding the threshold prevents non-compliance and helps businesses plan VAT registration properly.