VAT in the UAE is 5% on most goods and services. Getting registration timing and returns right avoids the penalties that catch many growing businesses.
When you must register
- Mandatory: taxable supplies and imports over AED 375,000 in the past 12 months, or expected to exceed it in the next 30 days. Apply within 30 days.
- Voluntary: taxable supplies, imports or taxable expenses over AED 187,500.
Zero-rated supplies, such as many exports, count towards the threshold. Exempt supplies, such as residential rent, do not.
Filing returns
- Returns are usually quarterly, on EmaraTax.
- File and pay within 28 days of the end of each VAT period.
- Output VAT is 5% on standard-rated sales, plus reverse charge on imports.
- Input VAT is recoverable on purchases used to make taxable supplies.
Input VAT: what you can and cannot recover
| Recoverable | Usually blocked |
|---|---|
| Stock, raw materials and services for taxable sales | Entertainment for customers or staff in most cases |
| Office rent, utilities and equipment | Cars available for private use |
| Imports under the reverse charge, if used for taxable sales | Purchases used for exempt supplies |
If you make both taxable and exempt sales, input VAT on shared costs is apportioned.
Records
Keep tax invoices, import documents and accounting records, generally for at least five years, and longer for some real estate.
Estimate your next return with our free UAE VAT return calculator.
Frequently asked questions
5% on most goods and services, with zero-rating and exemptions for specific supplies.
Within 28 days of the end of the VAT period, along with any VAT payable.
