What is the UAE VAT rate?

The standard UAE VAT rate is 5%, effective from 1 January 2018 under Federal Decree-Law No. 8 of 2017. Some supplies are zero-rated (0%) or exempt (no VAT charged).

When must a UAE business register for VAT?

Mandatory registration is required when your taxable supplies and imports exceed AED 375,000 per year. Voluntary registration is available if supplies exceed AED 187,500.

What is the difference between zero-rated and exempt supplies?

Zero-rated supplies are taxed at 0% VAT, but the supplier can still reclaim input VAT on related costs (e.g. exports, international transport, qualifying healthcare). Exempt supplies have no VAT charged and the supplier cannot reclaim input VAT (e.g. residential property after first supply, local passenger transport, certain financial services).

How do I file a UAE VAT return?

VAT returns are filed quarterly (or monthly for large taxpayers) via the EmaraTax portal at emaratax.gov.ae. Returns must be submitted and tax paid within 28 days of the end of the tax period.

What is e-invoicing and does it apply to me?

The UAE is rolling out mandatory B2B and B2G e-invoicing starting July 2026 for large taxpayers (phase 1). All tax invoices must comply with PEPPOL-based standards. Check the FTA website for current phase applicability.

Tax Calculator

UAE VAT Calculator

Add 5% VAT to a net amount, extract VAT from a gross amount, or use Advanced mode for bulk invoicing and VAT return preparation. UAE VAT has been in effect since 1 January 2018 under Federal Decree-Law No. 8 of 2017.

What's New in 2026

E-invoicing mandatory: The FTA is rolling out mandatory B2B and B2G e-invoicing starting July 2026 for large taxpayers (phase 1). All tax invoices must comply with the PEPPOL-based e-invoicing standard. Check FTA guidance for your eligibility.
EmaraTax platform: All VAT registrations, returns, and refund claims are now exclusively processed via the EmaraTax portal (replaced the old e-Services portal). Ensure you have migrated your account.

Zero-rated (0% VAT)

VAT charged at 0% but the supplier can reclaim input VAT. Examples: exports, international transport, qualifying education & healthcare, newly constructed residential property (first sale).

Exempt (no VAT)

No VAT charged and the supplier cannot reclaim input VAT on related costs. Examples: residential property (subsequent supply), bare land, local passenger transport, certain financial services.

Mode

Amount (excl. VAT)

Enter net sale price. We add 5% VAT.

Breakdown

VAT amount (5%)

AED 50.00

Net Amount (excl. VAT)AED 1,000.00

VAT (5%)AED 50.00

Gross Total (incl. VAT)AED 1,050.00

Based on UAE Law▼

§Federal Decree-Law No. 8 of 2017 on Value Added Tax

§Cabinet Decision No. 52 of 2017 (Executive Regulations)

§FTA VAT page

§Mandatory VAT registration: taxable supplies > AED 375,000/year

§Voluntary VAT registration: taxable supplies > AED 187,500/year

§VAT returns filed quarterly via EmaraTax portal

How UAE VAT Works

The UAE applies a standard VAT rate of 5% on most goods and services. Some supplies are zero-rated (exports, international transport, certain education and healthcare services) and others are exempt (residential property after the first supply, local passenger transport, certain financial services).

Mandatory registration: taxable supplies exceed AED 375,000 per year.
Voluntary registration: available if supplies exceed AED 187,500.
Returns are filed quarterly (or monthly for large taxpayers) via the EmaraTax portal.
Late payment penalty: 2% of unpaid tax on the day of default, plus 4% monthly thereafter.

Related Tools

Corporate Tax

Calculate 9% CT →

Business Setup

Estimate setup costs →

Gratuity Calculator

Calculate end-of-service pay →