VAT in the United Arab Emirates
The UAE charges VAT at 5%, unchanged since the tax was introduced on 1 January 2018. Registration with the Federal Tax Authority is mandatory once taxable supplies and imports exceed AED 375,000 over twelve months and voluntary from AED 187,500. Returns are usually quarterly and are due, with payment, 28 days after the end of the tax period.
Key facts
| Standard rate | 5% (since 1 January 2018) |
|---|---|
| Mandatory registration | Taxable supplies and imports above AED 375,000 in 12 months |
| Voluntary registration | Above AED 187,500 |
| Return period | Quarterly for most registrants; monthly for larger businesses |
| Deadline | 28 days after the end of the tax period |
| Authority | Federal Tax Authority (FTA) |
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Zero-rated and exempt
Exports outside the GCC implementing states, international transport, the first supply of a new residential building within three years of completion, specified education and healthcare and investment-grade precious metals are zero-rated. Residential leases, bare land, local passenger transport and specified financial services are exempt.
Designated zones and reverse charge
Goods moving between designated free zones can fall outside the scope of VAT if the conditions are met, but services supplied in a designated zone are taxed normally. Imports of services and of goods by a registrant are accounted for under the reverse charge on the return.
Frequently asked questions
- What is the VAT rate in the UAE?
- 5%, since 1 January 2018.
- What is the VAT registration threshold in the UAE?
- AED 375,000 of taxable supplies and imports over twelve months for mandatory registration; AED 187,500 for voluntary registration.
Primary sources
Related guides
Disclaimer: This page provides general tax information based on publicly available primary sources, reviewed on the date shown. Rules are conditional and change; the page may not reflect a change made after that date, and it is not a substitute for advice from a qualified tax professional on your specific situation.