Do I have to pay VAT if I’m self-employed?

Do I have to pay VAT if I’m self-employed?

Yes. If your turnover is 375,000 or more or else you can go for voluntary registration if your turnover is 187,500.

Only when your annual turnover reaches 375,000 AED or 187,500 AED are you eligible to register for VAT. For specific questions, you should speak with a tax advisor.

If you are self-employed and your taxable supplies and imports exceed AED 375,000 per annum, it is mandatory for you to register for VAT in the UAE. Once registered, you will be required to collect VAT on behalf of the government and file VAT returns.

You may only register for VAT if their annual turnover reaches 375,000 AED or 187,500 AED. You should consult a tax consultant for specific questions

VAT is a Value added tax. It is the sales tax that is paid by the VAT merchant registered on the price of some of the goods and services that are provided to the customers.  The standard rate of the VAT is 20%. 

In many countries, self-employed individuals are required to register their VAT for the annual turnover that exceeds a certain threshold as this includes the charges for the goods and services that are provided to the customers and remit the VAT to tax authorities. Once the VAT-registered merchant starts to collect the sales these can be due to compulsory registration or voluntary registration.