UAE VAT 2025 — Rates, Registration, Filing & Calculation Guide

This guide explains the UAE VAT (Value Added Tax) system in simple English. It covers VAT rates, mandatory registration thresholds, VAT invoices, filing rules, penalties, and a full VAT calculator.
Last Updated: 2025

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Quick Summary

Key Facts at a Glance

• Standard VAT Rate: 5% (applies to most goods & services)
• Zero-rated: exports, international transport, gold, education-related items (conditions apply)
• Exempt: residential rent, bare land, local passenger transport, life insurance
• Mandatory VAT Registration Threshold: AED 375,000 (taxable supplies)
• Voluntary Registration: AED 187,500
• Tax Authority: Federal Tax Authority (FTA)

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UAE VAT Rates (2025)

VAT Category	Rate	Examples
Standard Rated	5%	Electronics, food, services, online business
Zero-Rated	0%	Export goods, medicines, international transport
Exempt	No VAT	Residential lease, local transport

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VAT Registration Rules

Mandatory Registration

You must register if your taxable supplies exceed AED 375,000 in the last 12 months.

Voluntary Registration

Businesses may register voluntarily at AED 187,500.

Required Documents

• Trade License (valid)
• Passport copy & Emirates ID
• Bank details (IBAN)
• Financial turnover proof
• Business contact details

Official Registration Link (FTA e-Services):
https://eservices.tax.gov.ae

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VAT Invoice Requirements

• Supplier name, address, TRN (Tax Registration Number)
• Customer details
• Invoice date & number
• VAT amount clearly shown
• Total price including tax

Important: Without TRN, invoice is not a valid VAT invoice.

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VAT Return Filing (2025)

Most businesses must file returns quarterly. Some large businesses file monthly.

VAT Return Includes:

• Output VAT (collected)
• Input VAT (paid)
• Net VAT (payable or refundable)

FTA Filing Link:
https://eservices.tax.gov.ae

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VAT Calculation Formula

VAT = (Price × 5%)
Total Price = Price + VAT

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Online VAT Calculator (Interactive)

Enter Amount (AED):

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Penalties (2025)

Offense	Penalty
Failure to register	AED 10,000
Late VAT return filing	AED 1,000 first time, AED 2,000 next
Incorrect VAT return	2%–200% of the tax amount

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FAQs

1. Who must register for VAT in UAE?

Businesses with taxable supplies above AED 375,000.

2. Is VAT refundable?

Yes, eligible businesses can request refunds via FTA portal.

3. What is the UAE VAT rate in 2025?

The standard VAT rate is 5%.

4. What items are VAT exempt?

Residential rent, life insurance, bare land, local transport.

5. How do I check TRN validity?

TRN can be verified on the FTA website.

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Disclaimer: This post is for educational purposes only. Please always verify the latest rules from the FTA official website.

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