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📋 Legal Requirement — AED 375,000 Threshold

UAE VAT — Effective January 2018 · 5% Standard Rate

REGISTER.
FILE.
RECLAIM YOUR INPUT TAX.
ZERO PENALTIES.

UAE VAT is not optional once you hit the threshold. Every business with taxable supplies exceeding AED 375,000 must register with the FTA. Miss it and face AED 10,000–20,000 in penalties — plus ongoing filing obligations and record-keeping requirements.

📊

Mandatory at AED 375,000 · Voluntary from AED 187,500 Know your registration threshold — and act before the FTA contacts you first. Voluntary registration lets you reclaim input VAT from day one.

AED 20K

Max Late Penalty

5%

VAT Rate

AED 375K

Mandatory Threshold

12+

Years KDHA

📋 Check My VAT Obligations — Free WhatsApp Us Now

✅ Free VAT assessment — know your obligations in 30 minutes.

Check My VAT Status

Tell us your turnover and business type — we’ll confirm your VAT registration obligation, threshold & deadlines free of charge.

Company Type Free Zone Company (SHAMS / SPC / IFZA / DMCC / Other) UAE Mainland LLC Sole Establishment Branch of Foreign Company Not Sure — Need Guidance VAT Status Not registered — turnover near/above AED 375,000 Not registered — considering voluntary registration Already registered — need return filing help Received FTA notice / penalty Need to deregister from VAT 📋 Get My Free VAT Check Now Chat on WhatsApp Instead

UAE VAT Rates 2025

Three Categories of VAT
You Need to Understand

Not all supplies are taxed the same. Getting the classification right affects your pricing, invoicing, and how much input VAT you can reclaim.

📊

5%

Standard Rate

The default UAE VAT rate on most goods and services. You charge 5% on your sales (output VAT) and reclaim 5% on your business purchases (input VAT).

✈️

0%

Zero-Rated Supplies

Charged at 0% — including exports of goods, international transport, certain healthcare and education, and investment-grade precious metals. You can still reclaim input VAT on related costs.

🏠

Exempt

Exempt Supplies

No VAT charged and no input VAT reclaimable — includes bare land, residential property resale, local passenger transport and most financial services. Partial exemption rules apply.

💡

Zero-rated ≠ Exempt — a critical difference If your supplies are zero-rated, you can still reclaim all your input VAT — making VAT registration financially beneficial even if you charge 0%. If your supplies are exempt, you generally cannot reclaim input VAT. KDHA Prive helps you classify correctly to maximise your position.

Registration Thresholds

Mandatory vs Voluntary
VAT Registration in UAE

Two thresholds — one obligation, one opportunity. Know where your business stands.

⚠️

Mandatory Registration

AED 375,000

If your taxable supplies and imports exceeded AED 375,000 in the last 12 months — or are expected to exceed this in the next 30 days — VAT registration is legally mandatory. Failure to register on time incurs a penalty of AED 10,000 (first offence) or AED 20,000 (repeat offence). There is no grace period.

✅

Voluntary Registration

AED 187,500

If your taxable supplies or expenses exceed AED 187,500, you may voluntarily register for VAT. This is often beneficial — it allows you to reclaim input VAT on your business costs, improving cash flow. Many businesses register voluntarily to appear more credible to corporate clients who require VAT invoices.

📋 Check My Threshold — Free Assessment →

Who Needs VAT Registration?

If You’re in Business in UAE
and Above the Threshold — You Do.

VAT applies across mainland and free zones. If your taxable activity crosses AED 375,000, registration is mandatory — regardless of your business type.

🏢

Free Zone Companies

Free zone companies making taxable supplies to UAE mainland customers must register and charge VAT. B2B supplies to other free zone entities may qualify as zero-rated.

🏬

Mainland LLCs

All mainland businesses selling taxable goods or services above AED 375,000 — whether to consumers or other businesses — must register for VAT.

👤

Sole Establishments

Individual traders and sole proprietors with qualifying taxable turnover must register — your personal income is not the same as your business’s taxable supplies.

📱

E-Commerce Businesses

Online retailers, marketplaces and digital service sellers operating through UAE licenses must register once taxable supplies cross the mandatory threshold.

🌐

Foreign Companies

Non-resident businesses making taxable supplies in the UAE without a UAE establishment must register for VAT — with no minimum threshold applying.

🏗️

Contractors & Consultants

Professional service providers, consultants, and contractors billing UAE clients above AED 375,000 must register for VAT and issue compliant tax invoices.

🏦

Import Businesses

Businesses importing goods into the UAE must account for import VAT — and registration allows you to reclaim this against your output VAT.

🤝

VAT Groups

Two or more companies under common ownership may register as a VAT group — simplifying reporting and removing VAT on inter-company transactions.

📋 Am I Required to Register? Get a Free Check →

Know the Penalties

What the FTA Charges
for VAT Non-Compliance

UAE VAT penalties are structured, cumulative and strictly enforced. Here’s the full picture — and how KDHA Prive keeps you out of trouble.

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AED 10,000–20,000 — Late Registration Failing to register by the mandatory deadline costs AED 10,000 for the first offence and AED 20,000 for subsequent offences. Applies from the day you should have registered, regardless of whether you’ve collected any VAT.

📅

AED 1,000–2,000 — Late Return Filing First late return: AED 1,000. Second late return within 24 months: AED 2,000. Returns are due within 28 days of the end of each tax period — quarterly for most businesses. KDHA Prive tracks every deadline.

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2% + 4% Monthly — Late VAT Payment If you file on time but pay late: 2% of the unpaid VAT immediately, then 4% per month on amounts outstanding for more than one month. This compounds and can become significant quickly on larger VAT liabilities.

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AED 10,000–50,000 — Record-Keeping Failures UAE VAT law requires you to retain all records for 5 years (15 years for real estate). Failure to maintain proper books, VAT invoices and supporting documents attracts penalties of AED 10,000–50,000 per violation.

Our VAT Services

Everything VAT — Handled
End-to-End by KDHA Prive

📝

VAT Registration (EmaraTax)

Full FTA VAT registration via EmaraTax. We handle your TRN application, entity classification, supply analysis, and portal setup — fast, accurate, and compliant with FTA requirements.

⚠️ Mandatory Above Threshold

📊

Quarterly VAT Return Filing

Preparation and submission of your quarterly VAT return — output VAT calculation, input tax reconciliation, and timely filing within the 28-day deadline. No missed returns, no penalties.

⚠️ Mandatory — Every Quarter

💰

Input VAT Recovery & Reconciliation

We identify and maximise all allowable input VAT on your business expenses — supplier invoices, import VAT, overheads — ensuring you reclaim everything you’re entitled to.

💡 Saves You Real Money

🏢

VAT on Free Zone Transactions

Complex VAT treatment for free zone businesses — designated zone rules, mainland vs free zone supplies, zero-rating eligibility and import/export VAT compliance assessed and managed correctly.

💡 Free Zone Specialists

🔄

VAT Deregistration

Closing your business or dropping below the deregistration threshold? We manage the full FTA deregistration process — including final return filing, outstanding liabilities settlement and TRN closure.

💡 When You Need to Exit

🛡️

FTA Notice & VAT Audit Support

Received an FTA query, audit notice or VAT penalty? KDHA Prive responds on your behalf, prepares documentation and represents your position to minimise exposure.

🚨 Urgent Help Available

VAT Packages

Transparent Pricing.
Full VAT Compliance Included.

One package for registration, one for full ongoing compliance, one for everything. Penalty-free, on time, every quarter.

📝

VAT Register

Registration Only · One-Off

AED499

FTA VAT registration handled · Your TRN issued

• EmaraTax VAT Registration
• FTA Tax Registration Number (TRN)
• Supply Classification Review
• Registration Document Handling
• Mandatory vs Voluntary Assessment
• KDHA Support Throughout

Register Now →

Most Popular

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VAT Complete

Registration + Quarterly Return Filing

AED1,499

Annual compliance · All 4 returns included

• Everything in VAT Register
• 4 Quarterly VAT Return Filings
• Output & Input VAT Reconciliation
• Input Tax Recovery Maximisation
• Free Zone Supply Classification
• Deadline Tracking & Reminders
• FTA Return Submission
• Priority Support Channel

Get Full Compliance →

🛡️

VAT Shield

Full Compliance + Bookkeeping

From AED2,500

Annual plan · Price varies by transaction volume

• Everything in VAT Complete
• Monthly / Quarterly Bookkeeping
• VAT-Compliant Invoice Management
• 5-Year Record-Keeping Compliance
• FTA Audit Preparation & Support
• VAT Group Assessment
• Corporate Tax Integration
• Dedicated Compliance Manager

Get Protected →

📋 Not sure which package? Free assessment →

How It Works

VAT-Compliant in UAE
in 4 Simple Steps

1

Free Assessment

Fill the form or WhatsApp us. We assess your VAT obligation, threshold status and optimal registration approach — completely free.

2

Submit Documents

Share your trade license and financial details. We prepare your EmaraTax VAT registration and handle all FTA submissions.

3

TRN Issued

Your VAT Tax Registration Number issued. You’re registered, compliant and authorised to issue tax invoices. Usually within 1–5 working days.

4

Quarterly Filing

We prepare and file your VAT returns every quarter, maximise your input VAT recovery, and track every deadline so you never miss one.

Client Stories

UAE Businesses We’ve Kept
VAT-Compliant & Penalty-Free

★★★★★

“We didn’t realise our free zone company had to charge VAT on sales to mainland clients. KDHA Prive sorted our registration, back-dated our return correctly and handled the FTA smoothly. We haven’t missed a deadline since.”

SA

Sara A.

IFZA Free Zone Company · UAE

★★★★★

“KDHA Prive identified we were eligible to voluntarily register for VAT — which meant we could reclaim input VAT on our office costs, supplier invoices and equipment. That alone paid for their fees many times over.”

MR

Mohammed R.

Dubai Mainland Trading Co · UAE

★★★★★

“I’m based in London and my UAE company was getting FTA notices I didn’t understand. KDHA Prive took over completely — registered us, filed the outstanding returns and liaised with the FTA. Completely hands-off for me.”

LK

Laura K.

SHAMS Free Zone Company · UK-based Owner

📋 UAE VAT — Essential FAQs

VAT Questions Every
UAE Business Is Asking in 2025

📋 What is the UAE VAT registration threshold in 2025?▾

The mandatory UAE VAT registration threshold is AED 375,000 in taxable supplies and imports over the preceding 12 months, or if you expect to exceed this amount in the next 30 days. Voluntary registration is available from AED 187,500. The 30-day forward-looking test is critical — if you expect to exceed the threshold in the next month, you must register immediately, not after you actually cross it.
📋 Mandatory: AED 375,000 · Voluntary: AED 187,500

📋 Do free zone companies in UAE need to register for VAT?▾

It depends on the nature of your supplies. Free zone companies making taxable supplies to UAE mainland customers must register for VAT once they cross the threshold. Companies in UAE Designated Zones (a specific category of free zones listed by FTA) may treat supplies of goods between designated zone companies as outside the scope of UAE VAT. However, services are generally always subject to VAT even from designated zones. KDHA Prive provides a full VAT analysis for free zone companies to determine your exact position.
📋 KDHA assesses your specific free zone VAT position — free of charge

What is the VAT rate in UAE and what supplies are zero-rated?▾

The standard UAE VAT rate is 5%. Zero-rated supplies (taxed at 0%, but you can still reclaim input VAT) include: exports of goods outside the UAE, international passenger transport, certain education and healthcare services, investment-grade gold/silver/platinum, and the first supply of new residential buildings. Exempt supplies (no VAT charged and no input VAT reclaim) include: bare land, residential property resale, local passenger transport, and certain financial services.

How often do I need to file VAT returns in UAE?▾

Most UAE VAT-registered businesses file quarterly VAT returns — covering January–March, April–June, July–September, and October–December tax periods. Each return is due within 28 days of the period end. Businesses with annual taxable turnover above AED 150 million may be required to file monthly. KDHA Prive tracks all filing deadlines for every client and submits returns before the 28-day deadline, every quarter, without fail.

What is input VAT and can I reclaim it?▾

Input VAT is the VAT you pay on your business purchases, expenses and imports. If you are VAT-registered, you can generally reclaim input VAT from the FTA — either as a credit against your output VAT liability, or as a refund if your input VAT exceeds your output VAT. Input VAT reclaim is one of the key financial benefits of VAT registration, particularly for businesses with significant purchase costs. KDHA Prive performs a full input VAT reconciliation with every return to maximise your recovery.

📋 What are the penalties for late VAT registration in UAE?▾

Failing to register for VAT by the mandatory deadline results in AED 10,000 for the first offence and AED 20,000 for subsequent offences. Additional penalties apply if you have been collecting VAT from customers without being registered — this constitutes a serious violation. Late return filing carries AED 1,000 for the first offence and AED 2,000 for the second, plus surcharges on late VAT payments. Contact KDHA Prive immediately if you are unregistered and above the threshold.
📋 AED 10,000 first offence · AED 20,000 repeat offence

What VAT invoices must UAE businesses issue?▾

UAE VAT-registered businesses must issue tax invoices that include: the supplier’s name, address and TRN; the customer’s name and address (and TRN for B2B transactions above AED 10,000); invoice date and a sequential invoice number; description of goods or services; quantity, unit price and total consideration; VAT rate applied; and the VAT amount charged in AED. Simplified tax invoices are permitted for supplies under AED 10,000 to consumers. KDHA Prive advises on compliant invoice templates as part of our registration service.

Should I voluntarily register for VAT even if I’m below AED 375,000?▾

Voluntary registration makes sense if: (1) you are approaching the mandatory threshold and want to plan ahead; (2) you have significant input VAT on expenses you want to reclaim; (3) your business clients require a VAT TRN to pay you; or (4) you export goods or services and want to benefit from zero-rating. It may not be beneficial if your customers are mostly end consumers (who cannot reclaim VAT) and your purchase costs are low. KDHA Prive provides a free voluntary registration assessment — we’ll tell you honestly whether it’s worth it for your business.

How long do I need to keep UAE VAT records?▾

UAE VAT law requires businesses to retain all tax invoices, credit notes, accounting records, import/export documents, and VAT returns for a minimum of 5 years from the end of the tax period to which they relate. For real estate transactions, this period is extended to 15 years. The FTA can audit any registered business within this period, so proper record-keeping is essential. KDHA Prive provides record-keeping guidance and compliant bookkeeping as part of the VAT Shield package.

How do I deregister from VAT in UAE?▾

Deregistration from UAE VAT is mandatory if your taxable supplies drop below AED 375,000 for 12 consecutive months, or if you cease making taxable supplies. You may also voluntarily deregister if your supplies fall below the voluntary threshold. The deregistration process involves submitting a final VAT return, settling all outstanding VAT liabilities, and applying through EmaraTax. KDHA Prive handles the full deregistration process and ensures your final return position is correctly calculated.

Can KDHA Prive handle my VAT if I’m based outside UAE?▾

Absolutely. KDHA Prive manages VAT registration, quarterly return filing and full compliance for UAE companies whose owners or directors are based overseas — India, UK, Europe, GCC, and beyond. We operate entirely through EmaraTax and communicate via WhatsApp, email or video call. Your physical presence in the UAE is not required to stay VAT-compliant.

Your VAT Compliance Partner in the UAE

Get VAT-Registered, Filed
& Fully Penalty-Free.

KDHA Prive registers your business, files every quarterly return on time, maximises your input VAT recovery, and keeps you FTA-compliant — year after year. Zero stress. Zero penalties.

📋 Start My Free VAT Assessment WhatsApp Instantly

Disclaimer: Information on this page is for general guidance only and does not constitute formal tax or legal advice. UAE VAT law is subject to FTA clarifications and ministerial decisions. KDHA Prive FZC LLC acts as a registered business and tax compliance facilitator. Consult a licensed tax advisor for advice specific to your situation.