What is the UAE VAT rate?
The UAE standard VAT rate is 5%, introduced on 1 January 2018. It's one of the lowest VAT rates in the world and applies to most goods and services in the UAE.
How do I calculate 5% VAT in UAE?
To add VAT: multiply ex-VAT price by 1.05. Example: AED 1,000 × 1.05 = AED 1,050. To extract VAT: divide inclusive price by 1.05. Example: AED 1,050 ÷ 1.05 = AED 1,000 ex-VAT.
What is the UAE VAT registration threshold?
Mandatory registration is required if your annual taxable supplies exceed AED 375,000. Voluntary registration is available from AED 187,500. Registration is done through the FTA's EmaraTax portal.
Is healthcare zero-rated in UAE?
Yes. Healthcare services and related goods are zero-rated (0% VAT) in the UAE. This includes preventive and basic healthcare, medical equipment, and medicine. Education is also zero-rated.
Are GCC transactions subject to UAE VAT?
The GCC VAT framework allows for unified rules. Exports to other GCC states implementing VAT may be zero-rated depending on the transaction type. Check the FTA for current GCC VAT alignment status.
When are UAE VAT returns filed?
Most UAE VAT-registered businesses file quarterly VAT returns through the EmaraTax portal. Some larger businesses may be required to file monthly. Returns must be submitted and payment made within 28 days of the tax period end.