🇦🇪 Guide · United Arab Emirates · Published 2026-09-03
VAT in United Arab Emirates: rate, registration and filing
The 5% standard rate of VAT in United Arab Emirates, who must register with Federal Tax Authority (FTA), what a VAT invoice must show, and when returns and payments are due.
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Updated for 2026
Last reviewed September 2026
Figures and dates in this guide come from public sources as of 2026-09-03 and have not yet been checked against Federal Tax Authority (FTA)'s current publications. Confirm anything you rely on.
The rate
The standard rate in United Arab Emirates is 5%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
Who must register
Registration becomes compulsory once taxable turnover passes the threshold Federal Tax Authority (FTA) sets, measured over a rolling period. Below it, registration is usually voluntary, which makes sense if your customers are registered businesses that can reclaim what you charge.
Compulsory above AED 375,000 of taxable supplies in 12 months; voluntary above AED 187,500.
How to register
Register with Federal Tax Authority (FTA) on EmaraTax (Federal Tax Authority) using your TRN. Once registered you receive a VAT registration number or certificate, and from that date you must charge VAT on taxable sales, issue compliant invoices and file returns even when nothing is due.
Charging VAT on an invoice
Show the net amount, the VAT rate, the VAT amount and the gross total, with your registration number in the header. Prices quoted to consumers should include VAT; prices quoted to businesses usually exclude it and say so. The United Arab Emirates calculator adds or removes VAT and shows the arithmetic.
A tax invoice with the words Tax Invoice, the supplier's TRN, the date of supply, the rate and the VAT amount in AED.
Simplified tax invoices are allowed for supplies under AED 10,000 to non-registered customers.
Filing and paying
Returns are periodic, most often monthly or quarterly, and report the VAT you charged less the VAT you paid on purchases. The difference is paid to Federal Tax Authority (FTA) by the return deadline; a repayment is claimed when purchases exceed sales.
Quarterly (monthly for large businesses) VAT returns on EmaraTax, due by the 28th of the month after the tax period, with payment by the same date.
Penalties for getting it wrong
Late registration, late returns and late payment each attract penalties and interest with Federal Tax Authority (FTA). Charging VAT while unregistered is an offence in most countries. If you missed the threshold, register now and declare the back period.
AED 1,000 for a first late return and AED 2,000 for repeats within 24 months; late payment penalties start at 2% and accrue monthly.
Questions people ask
How do I add VAT to a price?
Multiply the net price by 1.05. A AED100 sale at 5% carries AED5 of VAT and totals AED105.
How do I remove VAT from a total?
Divide the gross by 1.05 to get the net, then subtract to find the tax. Dividing, not taking a percentage off, is the step people get wrong.
Should I register voluntarily?
If most of your customers are registered businesses, yes: they reclaim what you charge and you reclaim what you pay. If your customers are consumers, registration raises your prices by the tax rate or cuts your margin.
What if I am not registered?
Do not charge VAT and do not show a VAT line. State on the invoice that no VAT was charged. The generator prints that line when the toggle is off.
Written from published tax-authority guidance and reviewed on 2026-09-03. Everything here is indicative rather than a ruling on your circumstances, and rules change. Confirm anything you rely on with Federal Tax Authority (FTA) before acting on it, and tell us if you find something out of date so we can correct it.
This guide explains the rules in general terms and is not tax advice for your circumstances. Confirm your position with a qualified adviser or with Federal Tax Authority (FTA).
🇦🇪 United Arab Emirates
Tools for United Arab Emirates
Invoices, quotations, purchase orders, credit notes and waybills in AED, with VAT and the TRN on the document. Plus a VAT calculator. Everything runs in your browser and nothing is uploaded.