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VAT in the UAE

  • Standard rate: 5% since 1 January 2018.
  • Mandatory registration above AED 375,000 a year; voluntary from AED 187,500.
  • Some supplies are zero-rated (such as exports) or exempt (such as some residential property).

Worked example

AED 1,000 before VATVAT 5%: AED 50.00 · Total: AED 1,050.00Going back: AED 1,050.00 ÷ 1.05 = AED 1,000.00 before VAT

Questions people ask

What is the VAT rate in the UAE?

5%, managed by the Federal Tax Authority.

How do I calculate VAT from a total in the UAE?

Divide the total by 1.05 to get the price before VAT.

What is the UAE VAT registration threshold?

AED 375,000 a year, with voluntary registration from AED 187,500.

GCC VAT rates

CountryVAT rateSinceRegistration threshold
Saudi Arabia15%1 July 2020SAR 375,000
UAE5%1 January 2018AED 375,000
QatarNo VATNot introduced–
KuwaitNo VATNot introduced–
Bahrain10%1 January 2022BHD 37,500
Oman5%16 April 2021OMR 38,500

Official sources