As a start-up business, is it compulsory to register for VAT?

As a start-up business, is it compulsory to register for VAT?

Yes, if your turnover is 375,000 or above. Else you can go for voluntary registration if turnover is 187,500 or above.

if the taxable supplies have, over the past 12 months, exceeded the statutory registration threshold of Dh375,000 000 or are anticipated to do so within the next 30 days.

In UAE, businesses whose turnover exceeds AED 375,000 have to mandatorily apply for VAT registration. Newly incorporated companies do not need VAT registration services in the UAE. VAT registration for a new company is applicable only if the company is expecting a turnover of AED 187,500.

If the taxable supplies exceed the mandatory registration threshold of Dh375,000 000 over the previous 12 months, or are expected to exceed the threshold in the next 30 days.

A business only needs to register for VAT if its annual turnover reaches 375,000 AED or 187,500 AED. there may be many government schemes for startups you should consult a tax consultant for further details.