English text status

English translation published by the Legislation and Legal Opinion Commission. The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

A Taxable Person making only zero-rated Supplies may request exclusion from mandatory registration. NBR approval is required; the exclusion does not turn Supplies into exempt Supplies and the Regulations prevent Input Tax deduction or refund during the exclusion period.

Who should read this?

Exporters and businesses making only zero-rated Supplies.

Why does it matter?

Exclusion may reduce Return compliance but effectively gives up Input Tax recovery during the period. A non-zero-rated Supply or loss of the conditions triggers a 30-day notification or registration deadline.

All Supplies zero-ratedApplication and approvalNo deduction or refund

Current text

The Bureau may exclude a Taxable Person from mandatory registration, upon his request, if all his Supplies are subject to the zero rates. The Taxable Person shall, upon approval of his exclusion from mandatory registration, be obliged to notify the Bureau of any amendments or changes that may occur to his activity and oblige him to register immediately, in accordance with the time limits, cases and procedures specified in the Regulations. In all cases, the Bureau shall be entitled to collect the Tax and administrative fines due on the Taxable Person for the period in which he was unlawfully excluded from registration.

Before requesting exclusion

  1. 1

    Confirm every actual and expected Supply is zero-rated, not exempt or standard-rated.

  2. 2

    Compare compliance cost with Input Tax that will not be deducted or refunded.

  3. 3

    Provide the activity, actual and expected Supply data and required undertaking.

  4. 4

    Create an alert for any non-zero-rated Supply or activity change because the notification and registration period is 30 days.

Connected provisions

Direct legislative link

Regulations — Article (35)

Registration exclusion

It sets the application data, undertaking, NBR processing period and duties when conditions change.

Open connected Article

Official guides and tools

Official page

VAT Registration

Registration and certificate administration

Official guide

VAT Registration Guide

Registration exclusion — from the official guidance page

Connected Madar tools

Connected Madar tools

VAT Registration Centre

Check registration thresholds using your inputs, with mandatory, voluntary and uncertain cases distinguished.

Illustrative example by Madar

Exporter with Input Tax

A business may make only zero-rated exports while paying VAT on rent and operating costs. Before seeking exclusion, it should compare Return compliance with the Input Tax recovery it will give up during the exclusion period.

Questions to help you apply it

  • Are all Supplies genuinely zero-rated?
  • How much Input Tax recovery would be lost?
  • How will the business detect a first non-zero-rated Supply and notify the NBR within 30 days?