United Arab Emirates VAT / Sales Tax

Detailed vat / sales tax rates and rules for United Arab Emirates in 2026.

VAT / Sales TaxAED

The UAE implemented a 5% Value Added Tax (VAT) on 1 January 2018, as part of a coordinated GCC-wide VAT framework. VAT applies to most goods and services supplied in the UAE, with certain supplies zero-rated or exempt. The UAE's 5% VAT rate is among the lowest in the world. Businesses must register for VAT if their taxable supplies and imports exceed AED 375,000 per year. Voluntary registration is available when taxable supplies and imports exceed AED 187,500. VAT returns are typically filed quarterly, and the FTA administers all VAT compliance and refund processes through the EmaraTax digital platform.

Standard Rate

Registration Threshold

AED 375,000 mandatory; AED 187,500 voluntary

Reduced Rates

0% — Export of goods and services outside the GCC0% — International transportation0% — First supply of residential property within 3 years of completion0% — Certain education services0% — Certain healthcare services0% — Investment-grade precious metals (gold, silver, platinum) with purity of 99% or moreExempt — Bare land and local passenger transportExempt — Financial services (certain)Exempt — Residential property (subsequent supply/lease)

How United Arab Emirates VAT / Sales Tax compares

United Arab Emirates’s standard VAT / sales tax rate of 5% is the 171st highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and Asia’s regional average of 9.6%.