5% standard rate
Some supplies are zero-rated (exports, for example) and some are exempt. The treatment decides whether input VAT can be recovered.
FTA · Value Added Tax
UAE VAT: rate, registration and returns
The UAE has charged VAT since 2018. This page covers the thresholds, deadlines and penalties under FTA rules, the Free Zone special cases and our calculators. For a question about your own company, message us.
5% rateAED 375,000 thresholdReturn due in 28 days
Key rules
Thresholds and deadlines
Figures for a resident business. Non-residents, tax groups and some types of supply follow different rules.
AED 375,000 over 12 months
Taxable supplies and imports over the last 12 months, or expected in the next 30 days. The application is due within 30 days.
From AED 187,500
Worth it when counterparties need your TRN or you want to recover VAT on purchases before reaching the mandatory threshold.
Quarterly or monthly
The FTA assigns the period and its end dates at registration. Quarters end in different months for different businesses.
28 days after the period
The return is filed on EmaraTax and the tax paid by the same date. A period with no activity still needs a return.
Five years to claim excess input tax
From 1 January 2026, excess recoverable tax can be claimed within five years after the end of the period in which it arose. After that the right lapses.
Special cases
Where businesses get it wrong
These questions turn on the facts: contracts, invoices and where the goods travel. What follows is only the general direction.
A Free Zone is not a VAT exemption
Free Zone companies face the same thresholds. Only Designated Zones have special rules, and they mainly concern goods rather than services.
Imported services and goods
Under reverse charge the buyer accounts for the VAT. From 2026 no self-invoice is needed, but the supporting documents must be kept.
Recovery is not automatic
Input VAT is recoverable with a tax invoice, a link to taxable supplies and payment to the supplier (or an intention to pay within 6 months of the agreed date). From 2026 the FTA denies recovery where the buyer knew a supply was part of a tax-evasion arrangement, and may deny it where the buyer should have known. From 1 October 2026 this turns on supplier checks under FTA Decision No. 13 of 2026.
FTA penalties
What being late costs
The current schedule is Cabinet Decision No. 129 of 2025, in force from 14 April 2026. The penalty calculator works out late-return and late-payment penalties for your dates.
AED 10,000
For an application filed more than 30 days after crossing the threshold.
AED 1,000 · 2,000
AED 1,000 for the first late return, AED 2,000 for a repeat within 24 months.
14% per annum
Charged monthly on the unpaid amount until it is settled.
Tools
VAT calculators
The calculators need no sign-up and never ask for a company name or TRN.
Registration↗
Do I need to register for VAT?
Mandatory, voluntary or not yet, based on 12-month turnover and the 30-day forecast.
AED 187,500 / AED 375,000 thresholdsDeadlines↗
Tax deadline calendar
Your VAT and Corporate Tax return dates, with export to your calendar.
VAT · Corporate Tax · e-invoicingPenalties↗
Penalty calculator
Late-return and late-payment penalties and Voluntary Disclosure estimates.
Old and current FTA rulesDeregistration↗
VAT Deregistration
Whether to cancel your registration, and when the application and final return are due.
Mandatory · voluntary · final returnWhat BGA does
VAT registration and returns
We prepare the registration and returns and submit them through your EmaraTax access. We keep track of filing deadlines.
VAT registration
We check the threshold, collect the documents, file the application and prepare responses to FTA queries until the TRN is issued.
Returns every period
Quarterly VAT returns are part of the Small business and Premium plans, together with bookkeeping and Corporate Tax. Plans
VAT Return Health Check
If you filed returns yourself or with another accountant, we review them for errors. Details
Questions
UAE VAT FAQ
What is the VAT rate in the UAE?
The standard rate is 5%. Some supplies are zero-rated (exports, for example) and some are exempt; the treatment depends on the specific transaction.
When is VAT registration mandatory?
For a resident business, when taxable supplies and imports over the last 12 months exceeded AED 375,000, or are expected to exceed it in the next 30 days. The application is due within 30 days. Voluntary registration is possible from AED 187,500. Separate rules apply to non-residents.
Does a Free Zone company need to register for VAT?
Yes, the thresholds are the same as on the mainland. Special rules apply only to Designated Zones and mainly concern the movement of goods; services are taxed as usual.
How often are VAT returns filed?
The FTA assigns the tax period at registration: usually a quarter, for some businesses a month. The return is filed and the tax paid within 28 days after the period ends.
What happens if registration or a return is late?
Late registration costs AED 10,000. A first late return costs AED 1,000 and a repeat within 24 months AED 2,000. Unpaid tax accrues 14% per annum, charged monthly (Cabinet Decision No. 129 of 2025, in force from 14 April 2026).
How much does VAT support from BGA cost?
VAT registration is AED 2,500 one-off. Quarterly returns are included in the accounting plans: Small business at AED 3,500 per month and Premium at AED 7,000 per month.
General information. Rules checked against FTA and UAE Ministry of Finance publications as of 24 September 2026. This page describes general rules and does not replace advice on your company's facts. The FTA decides registration, the tax period and the classification of supplies. BGA provides accounting services and is not an FTA-registered tax agent; the taxpayer remains responsible for filing and payment.