Tax · Defined Term
UAE VAT defined.
Value Added Tax at 5% standard rate, introduced 1 January 2018. Administered by the UAE Federal Tax Authority (FTA).
Thresholds
- Mandatory registration: 12-month rolling turnover above AED 375,000 (USD 102,000), or expected to exceed in next 30 days.
- Voluntary registration: turnover above AED 187,500 (USD 51,000). Often beneficial for B2B operations to reclaim input VAT.
- Below voluntary threshold: registration not permitted.
Rates
- 5% standard rate on most goods and services supplied in the UAE.
- 0% zero-rated on exports outside the GCC, international transport, qualifying education and healthcare, certain investment-grade gold/silver.
- Exempt: certain financial services, residential property (after first supply), local passenger transport, bare land.
Filing
Returns are filed via the FTA portal, due by the 28th of the month following each tax period. Quarterly filings are the default for most businesses; businesses with taxable turnover above AED 150 million are required to file monthly. Penalties apply for late filing and late payment.