What is VAT?

VAT is an indirect tax. It is imposed on most supplies of goods and services that are bought and sold.


  • VAT will be introduced across the UAE on 1 January 2018 at a standard rate of 5%.

  • Business will be responsible for carefully documenting their business income and costs and associated VAT charges

  • VAT, as a general consumption tax, will apply to the majority of transactions of goods and services unless specifically exempted or excepted by law.

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Business Information

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What is VAT?

A supplier registered or required to be registered for VAT must issue a valid VAT invoice for the supply. To be considered as a valid VAT invoice, the document must follow a specific format as mentioned in the legislation.


  • A business must register for VAT if their taxable supplies and imports exceed the mandatory registration threshold of AED 375,000.

  • A business may choose to register for VAT voluntarily if their supplies and imports are less than the mandatory registration threshold, but exceed the voluntary registration threshold of AED 187,500.

  • A business may register voluntarily if their expenses exceed the voluntary registration threshold. This latter opportunity to register voluntarily is designed to enable start-up businesses with no turnover to register for VAT.

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Personal Information

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What is VAT?

It is expected that businesses will need to complete additional information on their VAT returns to report revenues earned in each Emirate. Guidance will be provided to businesses with regards to this.


  • All businesses in the UAE will need to record their financial transactions and ensure that their financial records are accurate and up to date.

  • Businesses that do not think that they should be VAT registered should maintain their financial records in any event, in case we need to establish whether they should be registered.

  • Businesses that meet the minimum annual turnover requirement (as evidenced by their financial records) will be required to register for VAT.

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Product Information

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Charges
Product Name List Price Discount Amount
Setup Charges AED 500 500
VAT Services AED 500 500
Total Amount 500
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What is VAT?

The government will not pay for businesses to buy new technologies or hire tax specialists and accountants. That is the responsibility of each business.


  • Taxpayers must file VAT returns with the FTA on a regular basis (quarterly or for a shorter period, should the FTA decide so) within 28 days from the end of the tax period in accordance with the procedures specified in the VAT legislation.

  • The Tax returns shall be filed online using eServices.

  • Any taxable person must retain VAT invoices issued and received for a minimum of 5 years.

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Payment Information

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