Home/UAE/Value Added Tax Vat Registration Guide
UAE VAT — Current 2026 FTA Framework

UAE Value Added Tax (VAT 5%) Guide

Understand VAT registration, the AED 375,000 and AED 187,500 thresholds, standard-rated, zero-rated and exempt supplies, input-tax recovery and EmaraTax filing requirements.

Based on current Federal Tax Authority material and UAE VAT legislation checked for 2026.

Federal VAT architecture

UAE VAT was introduced on 1 January 2018 at a standard rate of 5%. VAT is an indirect tax on taxable supplies and imports, subject to the zero-rating, exemption, registration, reverse-charge and other rules in the VAT legislation.

A taxpayer should identify the legal VAT treatment of each supply rather than deciding the rate solely from the type of business.

Standard-Rated Supplies

ClassificationCurrent rule
VAT rate5% VAT
ExamplesMost qualifying commercial goods and services, including many retail goods, dining services, professional services and commercial-property supplies
Input-tax treatmentInput VAT may be recoverable to the extent permitted by the VAT legislation and subject to business-use, blocked-input and partial-exemption rules.

VAT registration thresholds

Registration typeThresholdTestOutcome
Mandatory VAT registrationExceeds AED 375,000Taxable supplies and imports over the previous 12 months OR expected in the next 30 daysUAE-resident businesses meeting the test must register. The AED 375,000 threshold is not applicable to foreign businesses in the same way.
Voluntary VAT registrationExceeds AED 187,500Taxable supplies/imports OR taxable expenses over the previous 12 months OR expected in the next 30 daysA UAE-resident business that does not meet the mandatory test may be eligible to register voluntarily.

Resident vs non-resident registration

UAE-resident businesses use the AED 375,000 mandatory and AED 187,500 voluntary registration framework described above.

A non-UAE-resident business making taxable supplies in the UAE can be required to register regardless of the AED 375,000 threshold where no other person is responsible for accounting for the VAT.

What counts toward registration?

The test is based on the value of taxable supplies and imports. Voluntary registration additionally considers taxable expenses. This is why a business's total accounting revenue should not automatically be substituted for taxable turnover.

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Zero-rated supplies

The categories below come from the FTA's published VAT classifications. Each category is subject to its own statutory conditions; the category label alone does not guarantee a 0% rate.

CategoryCurrent treatment
ExportsExports of goods and services can qualify for the zero rate when the statutory export conditions are satisfied.
International transportationCertain international transportation services and related supplies can be zero-rated.
Qualifying residential buildingsThe first supply of a qualifying residential building within three years of completion can be zero-rated. Subsequent supplies are treated differently under the VAT law.
EducationCertain education services and related goods/services can be zero-rated where the legislative conditions are met.
HealthcareCertain preventive/basic healthcare services and related goods/services can be zero-rated where the legislative conditions are met.
Investment precious metalsCertain qualifying investment-grade precious metals can be zero-rated.
International / qualifying means of transportCertain aircraft, vessels, other means of transport and related supplies can qualify for 0% VAT under the statutory rules.

Exempt supplies

CategoryCurrent treatment
Certain financial servicesSpecified financial services are exempt when they meet the applicable legislative conditions.
Residential propertyResidential supplies are generally exempt unless they qualify for one of the statutory zero-rating provisions.
Bare landQualifying supplies of bare land are exempt from VAT.
Local passenger transportQualifying local passenger transport is an exempt category.

Residential-property VAT treatment

TransactionTypical VAT treatment
Commercial property sale or leaseGenerally taxable at the standard 5% rate, subject to the exact transaction and legislation.
First supply of qualifying new residential buildingCan be zero-rated when the statutory first-supply and three-year conditions are satisfied.
Later residential supplyGenerally exempt where it does not fall within a statutory zero-rating provision.
Bare landQualifying bare land is exempt.

Input VAT recovery

Taxable supplies

Input VAT can generally be recovered to the extent that it relates to making taxable supplies and the relevant recovery requirements are satisfied.

Zero-rated supplies

Zero-rated supplies are still taxable supplies, so related input VAT can generally remain recoverable subject to the legislation and any specific restriction.

Exempt supplies

Input VAT attributable to exempt supplies is generally not recoverable, subject to partial-exemption and other statutory rules.

Blocked or restricted input

Certain expenses have specific input-tax recovery restrictions, so “5% supply = 100% input recovery” is not a valid universal rule.

VAT registration process

1
Identify the business residency status
The AED 375,000 resident-business threshold is not the universal rule for non-UAE-resident businesses.
2
Calculate taxable supplies and imports
The registration test uses taxable supplies and imports rather than simply total accounting revenue.
3
Check the previous 12 months and next 30 days
A business can become mandatorily registrable through either the look-back test or the forward-looking 30-day test.
4
Check voluntary registration
Where mandatory registration does not apply, the AED 187,500 voluntary test also considers taxable expenses.
5
Determine the VAT treatment of supplies
Separate standard-rated, zero-rated and exempt supplies before calculating output VAT and input-tax recovery.
6
Register through the FTA system
VAT registration is submitted through the FTA electronic tax services / EmaraTax process.

VAT compliance deadlines and penalties

ItemCurrent rule
VAT registration deadlineA person required to register must generally submit the registration application within 30 days of becoming required to register.
VAT return deadlineThe VAT return and related payment are generally due within 28 days after the end of the tax period assigned by the FTA.
Tax periodThe FTA assigns the tax period. The standard period is generally three calendar months, but the FTA can assign a different period.
Late registration penaltyThe current published administrative-penalty schedule lists AED 10,000 for failure to submit a required registration application within the statutory timeframe.
Late VAT return penaltyThe current published schedule lists AED 1,000 for the first failure to submit a VAT return on time and AED 2,000 for repetition within 24 months.

VAT return filing

The FTA generally assigns a three-calendar-month tax period, but can assign a different period. Tax returns must be filed within 28 days after the end of the assigned tax period, or by another date specified by the FTA.

EmaraTax

VAT registration and returns are handled through the FTA's electronic tax services. The taxpayer dashboard provides the applicable registration and filing actions.

Common VAT mistakes

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Frequently Asked Questions

For a UAE-resident business, mandatory VAT registration applies when the value of taxable supplies and imports exceeds AED 375,000 over the previous 12 months or is expected to exceed AED 375,000 in the next 30 days. A UAE-resident business that does not meet the mandatory test may generally apply voluntarily where taxable supplies/imports or taxable expenses exceed AED 187,500 over the previous 12 months or are expected to exceed that amount in the next 30 days. The AED 375,000 threshold does not apply to foreign businesses in the same way.

The standard UAE VAT rate is 5%. However, not every supply is necessarily charged at 5%: qualifying supplies can be zero-rated at 0% or exempt from VAT, and the classification depends on the specific legislation and conditions.

Zero-rated supplies are taxable supplies charged at 0% VAT, whereas exempt supplies are outside the VAT-charging mechanism. The distinction matters because input VAT recovery can generally be available in relation to taxable supplies, including qualifying zero-rated supplies, while input VAT attributable to exempt supplies is generally not recoverable subject to the applicable rules.

The FTA lists several main zero-rated categories, subject to the conditions for each category. These include qualifying exports of goods and services, international transportation and related supplies, certain means of transport, certain investment precious metals, the first supply of qualifying residential buildings within three years of completion, certain education and healthcare supplies and other statutory categories.

The FTA identifies certain financial services, qualifying residential supplies other than those that are zero-rated, bare land and local passenger transport as exempt categories. Exemption depends on the exact statutory conditions; a supply should not be described as exempt merely because its value is below a VAT-registration threshold.

A person required to register for VAT must generally submit the registration application within 30 days of becoming required to register. For registered taxable persons, the VAT return and related payment are generally due within 28 days after the end of the tax period assigned by the FTA. The current published administrative-penalty schedule provides AED 10,000 for failure to submit a required registration application within the statutory timeframe and AED 1,000 for a first failure to submit a VAT return on time, increasing to AED 2,000 for repetition within 24 months.
🧮 UAE VAT Registration Calculator →💻 EmaraTax VAT Return Filing Guide →📅 UAE Tax Deadlines & Penalty Calendar →🏢 UAE Corporate Tax & Free Zone Guide →

Official FTA sources

These links are provided for direct verification. This webpage is not FTA-certified or approved by the FTA.

FTA — VAT Registration ThresholdsFTA — VAT Registration ServiceFTA — VAT Tax Obligations GuideFTA — VAT Returns User GuideFTA — Current VAT LegislationEmaraTax — FTA e-Services
Last reviewed for this page: 22 August 2026.