Required certification · United Arab Emirates
UAE VAT (Federal Tax Authority)
VAT at 5% — administered by the FTA since 2018
Market position
The Federal Tax Authority administers UAE VAT at a flat 5% (live since 2018). Construction services are generally standard-rated, so your accounting tool must handle 5% VAT and FTA filing.
United Arab Emirates-specific note
A Saudi-tuned (15%) product will mis-rate every UAE invoice — choose software set up for UAE’s 5% and FTA returns (First Bit, Focus, Sage, Zoho Books).
Pros
- + Single federal VAT regime (5%)
- + Clear FTA filing rules
- + Construction services generally standard-rated
Cons
- − Accounting software must be FTA-VAT-correct
- − Different math from Saudi’s 15%
- − Penalties for incorrect filing
Typical United Arab Emirates pricing
Government (VAT registration is free).
Why this matters for United Arab Emirates trades
Dubai Municipality (reshaped by Dubai Law No. 7 of 2025) and federal MOEI handle contractor registration/classification; VAT is 5% via the Federal Tax Authority; e-invoicing follows a decentralised Peppol model (mandatory for large taxpayers from 2027); Emiratisation (MOHRE/Nafis) governs labour; and Abu Dhabi adds the mandatory Estidama Pearl rating.
UAE construction & trades software selection is shaped by Dubai's BIM mandate, a 5% VAT (Federal Tax Authority), the upcoming Peppol e-invoicing model, Emiratisation labour quotas, a Dubai-vs-Abu-Dhabi regulatory split (Dubai Municipality contractor classification vs Abu Dhabi DMT + Estidama), and AED pricing.
Frequently asked
Is UAE VAT (Federal Tax Authority) a good fit for United Arab Emirates trades?
The Federal Tax Authority administers UAE VAT at a flat 5% (live since 2018). Construction services are generally standard-rated, so your accounting tool must handle 5% VAT and FTA filing. A Saudi-tuned (15%) product will mis-rate every UAE invoice — choose software set up for UAE’s 5% and FTA returns (First Bit, Focus, Sage, Zoho Books).
What does UAE VAT (Federal Tax Authority) cost in United Arab Emirates?
Government (VAT registration is free).. Pricing and availability can change by region — confirm current United Arab Emirates pricing on the vendor's site before committing.
Is UAE VAT (Federal Tax Authority) recommended?
Yes — it is a Tier S (Recommended) pick in our United Arab Emirates directory for required certification, based on market fit and reputation. Still compare it against the alternatives for your specific trade and region.
Other United Arab Emirates vendors
Dubai Municipality (Contractor Licensing)
Required certification
Ministry of Energy & Infrastructure (MOEI)
Required certification
UAE E-Invoicing (Peppol)
Required certification
MOHRE & Emiratisation (Nafis)
Required certification
Abu Dhabi DMT & Estidama
Required certification
Dubai BIM Mandate
Required certification