UAE VAT Guide: Rates, Registration and How It Works
· 1 min read · VAT & Tax
The UAE introduced VAT in 2018 at a flat 5% rate — one of the lowest in the world, but registration and filing rules still trip people up. Here's the essential breakdown.
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The standard rate
Most goods and services in the UAE are taxed at a flat 5%. A few categories are zero-rated (like certain exports and international transport) or exempt (like some financial services and residential property leasing) — those are treated differently for input VAT recovery purposes.
Who needs to register
Registration for UAE VAT is based on your business's annual taxable supplies:
- AED 375,000+ — mandatory registration
- AED 187,500 - 375,000 — voluntary registration allowed
- Below AED 187,500 — no registration needed
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Frequently asked questions
Is UAE VAT the same for every emirate?
Yes — VAT is a federal tax administered by the Federal Tax Authority (FTA) and applies at the same 5% rate across all seven emirates.
Can individuals reclaim VAT?
Generally no, except for specific schemes like new residence construction refunds for UAE nationals — VAT recovery is mainly a business mechanism.
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