UAE VAT
Also calledValue added taxFTA VAT
UAE VAT is the value added tax charged on most goods and services in the UAE, at a standard rate of 5%, which registered businesses collect on their sales and report to the Federal Tax Authority.
A registered business charges VAT on its taxable sales, reclaims the VAT it paid on business purchases, and pays or reclaims the difference through its VAT return. Tax invoices must show the required details, including the seller’s TRN and the VAT amount.
Worth knowing
- Registration is mandatory above AED 375,000 of taxable supplies a year and voluntary from AED 187,500, per the FTA.
- Some supplies are zero-rated or exempt; your software needs the right tax code on each item.
- Keep records for the period the FTA requires, and ask a registered tax agent about anything unusual.
In EXO NODES
UAE VAT and Arabic tax invoices are included on every EXO NODES plan, the free one too.
General information, not tax or legal advice. Check the official source and speak to a registered tax agent about your own situation.