Federal Decree-Law No. 8 of 2017 VAT Framework 2026
UAE Value Added Tax (VAT 5%) Guide
Official guide to UAE 5% VAT rules — Mandatory (AED 375k) & voluntary (AED 187.5k) registration thresholds, Tax Registration Number (TRN) application, 0% zero-rated sectors, exempt supplies, and EmaraTax quarterly filing.
Federal VAT Architecture
Value Added Tax (VAT) was introduced in the UAE on 1 January 2018 at a standard rate of **5%**.
VAT is an indirect consumption tax levied on taxable supplies of goods and services at each stage of the supply chain.
Standard Rate (5% VAT)
| Classification Parameter | Requirement & Details |
|---|---|
| VAT Tax Rate Applied | 5% VAT |
| Included Goods & Services | Commercial real estate sales/rent, electronics, vehicles, dining, professional services, retail goods |
| Input Tax Credit Recovery Status | Input VAT fully recoverable against Output VAT |
VAT Registration Thresholds
- 📊 Mandatory Threshold: AED 375,000 turnover in last 12 months or next 30 days
- 📊 Voluntary Threshold: AED 187,500 turnover or taxable expenses
- 📊 Late Registration Penalty: AED 10,000 administrative fine for failing to register on time
VAT Compliance Deadlines
- 🗓️ Return Frequency: Quarterly (or monthly for high turnover entities)
- 🗓️ Filing Deadline: 28th day following the end of the tax period
- 🗓️ Late Filing Fine: AED 1,000 for first offence / AED 2,000 for repeat
Frequently Asked Questions
Mandatory registration threshold is AED 375,000 turnover; voluntary threshold is AED 187,500.
The standard VAT rate is 5% applicable to most commercial goods, dining, retail, and services.
Returns and payments are due on the 28th day following the end of the assigned quarterly/monthly tax period via EmaraTax.
FTA EmaraTax Verified
• FTA VAT Public Clarifications: tax.gov.ae
• EmaraTax Login: eservices.tax.gov.ae