UAE VAT Guide

UAE VAT registration requirements, FTA filing obligations and compliance considerations for businesses in the GCC region.

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Last reviewed 01 June 2026

Reviewed by Desucla Tax Team

Last authority check 30 May 2026

Tax authority Federal Tax Authority (FTA)

Source status Based on tax authority guidance, local legislation and Desucla operational experience.

Important: Important: This guide is general information, not tax advice. Requirements depend on your business model, customer type, transaction flows and local authority interpretation.

At a glance

Local tax name / acronym	Value Added Tax (VAT) / ضريبة القيمة المضافة
Standard rate	5%
Reduced rates	0% zero-rated supplies
Registration threshold	AED 375,000 mandatory; AED 187,500 voluntary
Filing frequency	Usually quarterly; VAT return/payment due within 28 days after tax period end
E-invoicing / digital reporting	UAE e-invoicing rollout is underway, with official MoF guidelines issued in Feb 2026
Typical registration lead time	2-6 weeks

Recent changes

NEW

Elimination of Self-Invoicing for Reverse Charge Transactions

The UAE has removed the requirement for businesses to issue self-invoices for most reverse charge (RCM) transactions, provided they retain the supplier’s invoice and supporting documentation while correctly accounting for VAT under the reverse charge mechanism.

UPDATED

Introduction of a 5-Year Limit on VAT Refund Claims

The UAE introduced a 5-year deadline for claiming excess recoverable VAT, effective 1 January 2026, after which unclaimed VAT credits expire.

NEW

FTA Empowered to Deny Input Tax in Cases of Evasion

Effective 1 January 2026, the UAE Federal Tax Authority (FTA) may deny input VAT recovery where a transaction is linked to tax evasion and the taxpayer knew, should have known, or failed to carry out adequate due diligence regarding the arrangement.