Tax & Compliance
VAT (Value Added Tax)
A 5% tax applied to most goods and services in the UAE, with mandatory registration for businesses exceeding AED 375,000 in annual taxable supplies.
The UAE implemented VAT at 5% on January 1, 2018.
VAT registration is mandatory for businesses with taxable supplies exceeding AED 375,000 per year, and voluntary for those exceeding AED 187,500.
Registered businesses must charge 5% VAT on taxable supplies, file quarterly VAT returns through the Federal Tax Authority (FTA) portal, and can reclaim VAT paid on business expenses.