Understanding VAT registration thresholds in the GCC

VAT registration is mandatory once taxable supplies pass a threshold set by each state, and voluntary at a lower one. Registering brings the right to recover input VAT, and the obligation to file, keep records and issue compliant invoices.

Thresholds are calculated on turnover of taxable supplies over a rolling period, not on profit and not on a calendar year. Businesses growing quickly can cross the line mid-year and are expected to register from that point.

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