When must a business register for VAT?

Registration is mandatory once taxable supplies and imports exceed AED 375,000 over a twelve-month period. Voluntary registration is available above AED 187,500. Administrative penalties apply for late registration.

What is the VAT rate in the UAE?

The standard rate is 5%. Some supplies are zero-rated or exempt depending on their nature, which affects how a business reports VAT and recovers it on costs.

How often are VAT returns filed?

Returns are filed for each tax period assigned by the Federal Tax Authority — usually quarterly, and monthly for larger businesses — through the EmaraTax portal.

Value Added Tax · United Arab Emirates

VAT

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Registration, return filing, refunds and reconsiderations under UAE VAT — handled on a fixed calendar, with MHBC as your single point of contact.

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The UAE introduced Value Added Tax at a standard rate of 5% on 1 January 2018 under Federal Decree-Law No. 8 of 2017. A business must register for VAT once its taxable supplies and imports exceed AED 375,000 over a twelve-month period, and may register voluntarily above AED 187,500. Registered businesses file returns for each tax period through the FTA's EmaraTax portal, accounting for VAT charged on sales against VAT incurred on costs.

What this service covers

Book a consultation

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Assessment of your registration obligation, and preparation of registrations, tax-group registrations or deregistrations through EmaraTax.

VAT registration & deregistration

Registration
Tax group
Deregistration

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Preparation and submission of periodic returns, reconciling output and input VAT against your records for each tax period.

VAT return filing

Returns
Input VAT
Output VAT

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Preparation of refund claims where VAT is recoverable, and reconsideration requests where an FTA decision needs to be challenged.

Refunds & reconsideration

Refunds
Reconsideration

Guidance on how specific transactions are treated — zero-rating, exemptions, imports and the reverse charge — before they are filed.

VAT advisory

Zero-rating
Exemptions
Reverse charge

One-time

Registration or deregistration, and the initial review of how VAT applies to your transactions.

Recurring

Return filing every tax period, with records reconciled on a fixed calendar.

Audit, legal drafting and regulated tax matters are carried out by licensed auditors, registered tax consultants and lawyers within MHBC's team and partner network. MHBC coordinates their work and remains your single point of contact throughout.

Frequently asked

Questions, answered plainly.

When must a business register for VAT?: Registration is mandatory once taxable supplies and imports exceed AED 375,000 over a twelve-month period. Voluntary registration is available above AED 187,500. Administrative penalties apply for late registration.
What is the VAT rate in the UAE?: The standard rate is 5%. Some supplies are zero-rated or exempt depending on their nature, which affects how a business reports VAT and recovers it on costs.
How often are VAT returns filed?: Returns are filed for each tax period assigned by the Federal Tax Authority — usually quarterly, and monthly for larger businesses — through the EmaraTax portal.