Definition

Voluntary VAT Registration allows UAE businesses with taxable supplies or expenses above AED 187,500 per year to register for VAT, even if they do not meet the mandatory threshold.

Key points

• Enables claiming input VAT on business expenses.
• Can improve business credibility with suppliers and clients.
• Must maintain proper VAT records after registration.

Practical example

A startup earns AED 200,000 annually and voluntarily registers for VAT to reclaim input VAT on office rent and equipment.

Why it matters

Early VAT registration helps businesses recover costs and prepare for future growth.