🇦🇪 UAE · Guide
VAT — Complete Overview
The UAE introduced VAT on 1 January 2018 at a standard rate of 5% — among the lowest VAT rates in the world.
Last reviewed 24 Jul 2026
Registration thresholds
| Type | Annual Threshold |
|---|
| Mandatory registration | AED 375,000 in taxable supplies |
| Voluntary registration | AED 187,500 in taxable supplies/expenses |
Zero-rated supplies (0% but still taxable)
- Exports of goods and services outside the GCC implementing states
- International transportation
- Certain healthcare and education services
- First supply of new residential buildings (within 3 years of completion)
Exempt supplies (no VAT charged, no input tax recovery)
- Residential rent (subsequent supplies)
- Local passenger transport
- Certain financial services
- Bare land
VERIFY
Zero-rating and exemption rules have detailed conditions. Verify your specific goods/services classification with the FTA or a tax advisor.