A freelance consultant just started operating in the UAE and projects around AED 200,000 in revenue for their first year, well below what they assume might trigger tax obligations.
The Walkthrough
- Enter projected annual revenue
AED 200,000 is the figure to check against both VAT and Corporate Tax thresholds, since each has its own separate criteria. - Check the VAT mandatory registration threshold specifically
Compare the projected revenue against the current mandatory VAT registration threshold to see whether registration is required or still optional. - Check Corporate Tax obligations separately
Even if below the VAT threshold, Corporate Tax has its own separate assessment — check whether this revenue level falls under the tax-free threshold, Small Business Relief, or standard obligations. - Consider voluntary VAT registration if below threshold
Being below the mandatory VAT threshold doesn't mean registration isn't possible — check whether voluntary registration might benefit this freelancer, such as reclaiming VAT on business costs. - Note both results for future revenue growth
Since thresholds are based on projected or actual revenue, revisit this check periodically as the freelancer's income grows beyond the current AED 200,000 estimate.
The Takeaway
At AED 200,000 in projected revenue, this freelancer likely sits below the mandatory VAT threshold but should still separately check their Corporate Tax position, since the two taxes have completely independent rules — assuming one exemption covers both is a common and avoidable mistake.
Try It With Your Own Numbers
This example used specific figures to make the process concrete, but the same steps apply whatever your actual numbers are. Run the Tax Assistant with your own details — free, in under a minute, no sign-up required.