Required certification · United Arab Emirates
UAE VAT (Federal Tax Authority)
UAE VAT at 5%, administered by the Federal Tax Authority since 1 January 2018
Market position
The Federal Tax Authority (FTA) administers UAE VAT, introduced on 1 January 2018 at 5%. A business must register once its taxable supplies and imports exceed AED 375,000 over 12 months, and may register voluntarily from AED 187,500. Registration, returns and payments run through the FTA's EmaraTax platform, accessed with UAE Pass, and each return and payment is due within 28 days of the end of the tax period.
United Arab Emirates-specific note
Set your invoicing and accounting software up for UAE VAT at 5% and FTA returns filed through EmaraTax. If you build homes for UAE nationals, keep proper tax invoices: the owner can claim VAT on the new residence back from the FTA within 12 months of completion.
Pros
- + One federal VAT regime at 5%
- + Free registration through EmaraTax (the FTA quotes 20 business days to process)
- + Published thresholds: AED 375,000 mandatory, AED 187,500 voluntary
- + FTA refund scheme for UAE nationals building a new home
Cons
- − Invoicing software must produce UAE VAT invoices and returns at 5%
- − Return and payment due within 28 days of each tax period end
- − FTA services are available only online through UAE Pass and EmaraTax
Typical United Arab Emirates pricing
VAT registration is free (FTA service card); VAT is charged at 5%.
Why this matters for United Arab Emirates trades
Under Dubai Law No. 7 of 2025, contracting work in Dubai needs a trade licence and entry in Dubai Municipality’s Contractors Register, while federal MOEI e-qualification covers only MOEI’s own engineering projects. VAT is 5%, with registration mandatory once taxable supplies and imports exceed AED 375,000 over 12 months. E-invoicing follows a decentralised model based on the OpenPeppol standard: under Ministerial Decision No. 244 of 2025, as amended by Ministerial Resolution No. 66 of 2026, each business appoints an Accredited Service Provider from the Ministry of Finance list (by 30 October 2026 for revenue of AED 50 million or more, implementing by 1 January 2027; by 31 March 2027 for smaller businesses, implementing by 1 July 2027). MOHRE sets Emiratisation targets for companies with 50 or more employees and for companies with 20-49 employees in 14 sectors, and in Abu Dhabi a building permit needs an Estidama Pearl rating (at least one Pearl for private projects, two for government-funded ones).
UAE construction and trades software selection is shaped by 5% VAT filed with the Federal Tax Authority through EmaraTax, the phased e-invoicing mandate run through accredited Peppol service providers (under Ministry of Finance decisions, businesses with revenue of AED 50 million or more implement it by 1 January 2027 and smaller businesses by 1 July 2027), MOHRE Emiratisation targets, separate regulatory systems in Dubai (Dubai Municipality’s Contractors Register and its BIM requirement for large and specialised buildings) and Abu Dhabi (DMT classification, permits and the Estidama Pearl rating), and AED pricing.
Frequently asked
Is UAE VAT (Federal Tax Authority) a good fit for United Arab Emirates trades?
The Federal Tax Authority (FTA) administers UAE VAT, introduced on 1 January 2018 at 5%. A business must register once its taxable supplies and imports exceed AED 375,000 over 12 months, and may register voluntarily from AED 187,500. Registration, returns and payments run through the FTA's EmaraTax platform, accessed with UAE Pass, and each return and payment is due within 28 days of the end of the tax period. Set your invoicing and accounting software up for UAE VAT at 5% and FTA returns filed through EmaraTax. If you build homes for UAE nationals, keep proper tax invoices: the owner can claim VAT on the new residence back from the FTA within 12 months of completion.
What does UAE VAT (Federal Tax Authority) cost in United Arab Emirates?
VAT registration is free (FTA service card); VAT is charged at 5%. Pricing and availability can change by region; confirm current United Arab Emirates pricing on the vendor's site before committing.
Other United Arab Emirates vendors
Dubai Municipality (Contractor Licensing)
Required certification
Ministry of Energy & Infrastructure (MOEI)
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UAE E-Invoicing (Peppol)
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MOHRE & Emiratisation (Nafis)
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Abu Dhabi DMT & Estidama
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Dubai BIM Mandate
Required certification