The standard UAE VAT rate is 5%, applied to most goods and services at each stage of the supply chain. Some specific categories are zero-rated (0% VAT but still reportable, like many exports) or exempt (no VAT, generally not reclaimable, covering some specific sectors like certain financial services). Businesses that cross the mandatory registration threshold must register, charge VAT, and can generally reclaim VAT paid on eligible business costs.
Check your own exact figures with the UAE VAT Calculator - free, in under a minute, no sign-up required.
Frequently Asked Questions
Has the VAT rate changed since it was introduced?
It's been 5% since VAT was introduced in 2018 - check current official sources to confirm this remains the case.
Is the 5% rate the same for every emirate?
Yes - VAT is a federal tax administered by the Federal Tax Authority and applies uniformly across the UAE.
Does every business have to charge VAT?
Only VAT-registered businesses charge VAT - registration is mandatory above a specific turnover threshold and optional below it.
Are there any goods or services with a different VAT rate?
Most supplies are standard-rated at 5%, though specific zero-rated and exempt categories exist for particular sectors.
How do I check if my business needs to register for VAT?
Use the VAT calculator or tax assistant to check your turnover against the current mandatory registration threshold.