How VAT works in United Arab Emirates
The UAE introduced VAT in 2018 at a flat 5% standard rate, administered by the Federal Tax Authority (FTA). Exports and certain healthcare, education, and international transport are zero-rated.
VAT rates
| Type | Rate | Applies to |
|---|---|---|
| standard | 5% | Most goods and services |
| zero | 0% | Exports, certain healthcare and education |
Do I need to register for VAT in United Arab Emirates?
Registration threshold: د.إ375,000 annual taxable turnover.
Mandatory registration applies when taxable supplies exceed AED 375,000 over the past 12 months. Voluntary registration is allowed above AED 187,500. Register via the FTA portal.
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Common mistakes
- Mixing zero-rated and exempt supplies in returns
- Not issuing tax invoices in the format required by the Federal Tax Authority (FTA)
- Missing quarterly filing deadlines
FAQs
What is the UAE VAT rate?⌄
A flat 5% standard rate applies to most goods and services.