What is the UAE VAT rate?

5% standard rate, with zero-rated and exempt categories.

When is the VAT return due?

By the 28th day after the end of the tax period.

UAE VAT basics: registration, tax invoices and returns

UAE VAT basics every owner should know.

The essentials of UAE VAT in one page: when to register, what a tax invoice needs, when returns are due and how long to keep records.

UAE VAT is charged at 5% on most goods and services. Registration is mandatory when taxable supplies exceed AED 375,000 in 12 months and voluntary above AED 187,500. Returns are usually quarterly and due within 28 days after the period ends, and records must generally be kept for at least five years.

When to register

Mandatory when taxable supplies and imports exceed AED 375,000 in the past 12 months, or are expected to in the next 30 days.
Voluntary when they (or taxable expenses) exceed AED 187,500.

Tax invoices

A full tax invoice is required when you supply a VAT-registered customer or the value exceeds AED 10,000. It must show the words “Tax Invoice”, your name, address and TRN, the customer’s details (and TRN if registered), a sequential number, the date, a description, the taxable amount, the VAT rate and amount, and the total. Below that, a simplified tax invoice may be used for unregistered customers.

Returns and payment

Most businesses file quarterly; some are assigned monthly periods. The VAT 201 return and payment are due by the 28th day after the end of the period, through the EmaraTax portal.

Records

Keep accounting and tax records for at least five years after the end of the tax period (longer for real estate). One keeps issued documents locked and keeps a full audit trail.

Sources

General information, not tax or legal advice. Confirm with the authority or your adviser before acting.

UAE VAT basics every owner should know.