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Taxes in the UAE

VAT in the UAE

The UAE introduced VAT on 1 January 2018 at a standard rate of 5%. A business must register once its taxable supplies and imports pass AED 375,000 over the last 12 months.

Updated October 2026 · Figures checked 21 October 2026

Standard rate since 1 January 2018
5%1
Standard rate since 1 January 2018
Compulsory registration threshold, 12 months
AED 375,0002
Compulsory registration threshold, 12 months
Voluntary registration threshold
AED 187,5002
Voluntary registration threshold

VAT in the UAE

Rates

Rates
Rate Applies to
5% Most goods and services
0% Exports of goods and services outside the GCC, international transport, certain aircraft, ships and other means of transport, investment-grade precious metals (99% purity)
Exempt Residential property is generally exempt; VAT paid on costs of exempt supplies cannot be recovered

Source: UAE Ministry of Finance: Value Added Tax1

Registration

  • Compulsory when taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to in the next 30 days.
  • Voluntary when supplies and imports, or taxable expenses, exceed AED 187,500.
  • Foreign businesses making taxable supplies in the UAE do not get the threshold and must register from the first supply, unless the customer accounts for the VAT.
  • Registration and returns are on the FTA’s EmaraTax platform; registered businesses receive a 15-digit Tax Registration Number (TRN).

Source: Federal Tax Authority: Registration for VAT; UAE Ministry of Finance: Value Added Tax2,1

Sources

  1. UAE Ministry of Finance: Value Added Tax
  2. Federal Tax Authority: Registration for VAT

Figures checked 21 October 2026. Prepared by Invest-Emirates.ae for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.

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