The thresholds
Registration becomes mandatory when taxable supplies and imports exceed AED 375,000 in the previous 12 months, or are expected to exceed it in the next 30 days. Businesses can register voluntarily once supplies or expenses exceed AED 187,500.
Common mistakes
We often see businesses monitor the threshold only at year end, overlook imports and reverse-charge supplies when calculating turnover, or delay registration while waiting for documents — each of which can lead to late-registration penalties.
What to do now
Track turnover on a rolling 12-month basis each month, keep trade licence and bank details ready, and seek advice early if you are close to the threshold.
This article is general information, not advice for your specific situation. Rules change, so please contact us before acting on it.
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