UAE VAT Registration & Filing — registered & filed on time
UAE VAT is a 5% tax you charge, collect and report to the Federal Tax Authority. Here is who must register, the AED 375,000 and 187,500 thresholds, how zero-rated and exempt supplies differ, how returns are filed, and how we keep your VAT accurate and penalty-free.
What this guide covers
Quick summary
- Rate: 5% standard VAT on most goods and services.
- Mandatory registration: taxable turnover above AED 375,000 a year.
- Voluntary registration: from AED 187,500 — useful to reclaim input VAT.
- Filing: usually quarterly, due within 28 days of each period's end.
- Watch: late registration, filing or payment all carry penalties.
What UAE VAT is
Value Added Tax (VAT) is a 5% consumption tax that has applied in the UAE since 2018. Businesses charge it on most goods and services, collect it from customers, and pass it to the Federal Tax Authority — reclaiming the VAT they pay on their own costs along the way. It is not a cost to a compliant business so much as a flow you have to record and report correctly. Get the registration threshold, the returns and the record-keeping right, and VAT is simply routine.
Where businesses run into trouble is registering late, filing incorrectly, or failing to keep the records the FTA expects. The penalties for those mistakes are real. We handle your registration, your returns and your records so VAT never becomes a problem.
Who must register
Whether you must register depends on your taxable turnover:
| Your taxable turnover | Registration |
|---|---|
| Above AED 375,000 per year | Mandatory |
| AED 187,500 – 375,000 per year | Voluntary |
| Below AED 187,500 per year | Not required |
If you cross the mandatory threshold — or expect to within 30 days — you must register. Voluntary registration below the threshold can make sense if you want to reclaim input VAT or look established to larger clients. We advise on the right call for your business.
Standard, zero-rated & exempt
Not everything is taxed at 5%. Some supplies are zero-rated (0% but still reportable, such as certain exports and healthcare), and some are exempt (no VAT and no input recovery, such as certain financial services and residential property). Classifying your supplies correctly is essential — it changes what you charge and what you can reclaim.
Filing your VAT returns
Most businesses file VAT returns quarterly through the FTA's online portal, though some file monthly. Each return reports the VAT you charged (output tax) and the VAT you paid (input tax); you pay the difference or claim a refund. Returns and payment are due within 28 days of the end of each tax period. Late filing or payment triggers administrative penalties.
How Aurum helps
Check your obligation
We assess your turnover and supplies to confirm whether and when you must register.
Register with the FTA
We complete your VAT registration and secure your Tax Registration Number.
Set up VAT-ready records
We put invoicing and bookkeeping in place so every transaction is captured correctly.
Prepare & file returns
We calculate, review and file your periodic VAT returns on time, and handle refunds.
VAT works best alongside solid accounting and bookkeeping — the two share the same records. If you are also within scope of corporate tax, we manage both together.
Official sources
- Federal Tax Authority (FTA) — VAT
- UAE VAT Law (Federal Decree-Law No. 8 of 2017)
- FTA VAT registration & filing guidance
VAT FAQs
What is the VAT rate in the UAE?
The standard VAT rate is 5%. Some supplies are zero-rated (0% but reportable, such as certain exports and healthcare), and some are exempt (no VAT and no input recovery, such as certain financial services and residential property).
When must I register for VAT?
Registration is mandatory once your taxable turnover exceeds AED 375,000 a year, or if you expect to cross it within 30 days. Voluntary registration is possible from AED 187,500.
How often do I file VAT returns?
Most businesses file quarterly through the FTA portal, though some are assigned monthly periods. Returns and payment are due within 28 days of the end of each tax period.
Should I register voluntarily for VAT?
It can make sense if you want to reclaim VAT on your costs or appear more established to larger clients. We weigh the admin against the benefit for your specific business.
What happens if I file or pay VAT late?
The FTA applies administrative penalties for late registration, late filing and late payment. Keeping accurate records and filing on time avoids them — which is exactly what we manage.
Can I reclaim the VAT my business pays?
Yes. A VAT-registered business reclaims the input VAT it pays on eligible costs, offsetting it against the output VAT it charges. Only the net difference is paid to the FTA.
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