What is Value Added Tax (VAT)?
UAE VAT is a 5% tax on most goods and services, collected by VAT-registered businesses at each stage of supply and paid to the FTA, with businesses reclaiming the VAT on their own costs.
VAT has applied since 1 January 2018. Registration is mandatory above AED 375,000 of taxable supplies in 12 months, and returns are usually filed quarterly.
