What is VAT and who should register to pay the tax?

The UAE will start applying Value Added Tax from January 2018, at the rate of 5%, as a general consumption tax.  This will apply to the majority of transactions in goods and services. A limited number of exemptions may be granted.

Any person conducting an economic activity in the UAE is required to register for VAT if taxable supplies (Goods or Services) exceed 375,000 AED over the last 12 months.

Any person conducting an economic activity in the UAE may opt to register for VAT if taxable supplies (Goods or Services) exceeded 187,500 AED over the last 12 month.