Value Added Tax (VAT) in the UAE is charged at a standard rate of 5% on most goods and services and has applied since 1 January 2018. It is administered by the Federal Tax Authority (FTA) through the EmaraTax portal. If your business makes taxable supplies, VAT affects your pricing, your invoicing, and your quarterly compliance.
Do I need to register for VAT?
Registration is mandatory once your taxable turnover exceeds AED 375,000 in a 12-month period, and voluntary from AED 187,500. Voluntary registration can make sense if most of your customers are VAT-registered businesses who can recover the tax. Check your position with the free VAT threshold checker.
How VAT filing works
- Most businesses file the VAT201 return quarterly, within 28 days of the end of each tax period.
- You report output tax (on sales) and reclaim input tax (on purchases); the difference is paid to or refunded by the FTA.
- Supplies can be standard-rated, zero-rated (e.g. many exports), or exempt — the classification changes what you can reclaim.
Penalties and staying compliant
Late registration, late filing, and errors all carry administrative penalties — see the Deadlines & Penalties hub. Clean monthly records are the foundation of accurate returns, and are increasingly linked to e-invoicing as the UAE rolls out structured invoice reporting.
Get help with your VAT
We manage VAT registration, return preparation, and filing end to end, coordinating the regulated submission through our network of FTA-registered partner tax agencies. Set free filing reminders on the reminders page so you never miss a 28-day deadline.
Headline figures are general guidance — confirm the current rules and your specific position with an FTA-registered tax agency before acting.