Rolling 12-month threshold test
Do I test the VAT threshold on calendar year sales or something else?
The situation
The test is on a rolling 12-month basis. At the end of every month, look back 12 months and forward 30 days.
The law
- Art 13, Federal Decree-Law 8 of 2017: Mandatory registration above AED 375,000 in 12 months or expected within 30 days
What it means for you
Example: sales from 1 August 2025 to 31 July 2026 total AED 380,000, even though calendar 2025 was only AED 300,000. You crossed the threshold at the end of July 2026 and must apply by the end of August 2026. Include imports and taxable supplies, but not exempt supplies.
What to do
- Build a monthly sales sheet.
- Sum the last 12 months every month end.
- Add expected sales in the next 30 days.
- Apply within 30 days once over AED 375,000.
We can do this for youVAT registration on EmaraTax: threshold test, voluntary registration, non-residents and tax groups: AED 950