The 5% rate
The UAE levies VAT at a standard rate of 5% on most goods and services, with certain supplies zero-rated or exempt.
Who must register
Registration is mandatory once taxable supplies exceed AED 375,000 a year, and voluntary above AED 187,500. Registering late can trigger penalties.
Filing and records
Registered businesses file periodic returns (usually quarterly or monthly) and must keep compliant tax invoices and records. Input VAT on business costs is generally recoverable.
Common pitfalls
Errors include misapplying zero-rating, missing deadlines and poor record-keeping. Clean accounting and a managed filing calendar prevent most issues.
Frequently asked questions
What is the UAE VAT rate?
5% standard, with some supplies zero-rated or exempt.
When must I register for VAT?
Mandatory above AED 375,000 in taxable supplies; voluntary above AED 187,500.
About the author
Omega Global Editorial · Editorial Team
Practitioners from Omega Global's Technology, Marketing, Finance and Construction practices, writing on doing business across Saudi Arabia, the UAE and Oman.