While VAT registration is mandatory in the UAE once a business exceeds AED 375,000 in taxable supplies, companies with revenue between AED 187,500 and AED 375,000 can opt for voluntary registration—and in many cases, this is a smart move. 

Doing business across GCC borders can be profitable—but it complicates VAT compliance. With the UAE and other Gulf countries implementing VAT, inter-Gulf transactions require careful management to stay compliant. 

VAT audits are becoming more common as the Federal Tax Authority (FTA) increases its oversight in the UAE. Many businesses are caught off guard by VAT audits, which can lead to assessments, fines, and stress. Preparation is not optional—it’s essential. 

Since the introduction of VAT in the UAE in 2018, many businesses—especially SMEs—still struggle with full compliance.