UAE Tax

VAT (Value Added Tax)

A consumption tax levied on goods and services at each stage of the supply chain in the UAE at a standard rate of 5%.

What does VAT mean?

The UAE introduced VAT on January 1, 2018, at a 5% standard rate. Businesses with taxable supplies exceeding AED 375,000 must register for VAT with the Federal Tax Authority (FTA). VAT-registered businesses charge output VAT on sales and can reclaim input VAT on business purchases. VAT returns are filed quarterly or monthly depending on the business size. Late filing attracts penalties starting at AED 1,000 for the first offense.