UAE VAT Guide
Everything about the 5% Value Added Tax — registration, filing, refunds, and the new 2026 rules.
Your VAT credits are expiring
Credits from 2018-2020 expire on 31 December 2026. Credits from 2021 are expiring throughout 2026. Claim now or lose them permanently.
Read details →VAT Basics
What is VAT in the UAE?
Value Added Tax (VAT) is a 5% tax on most goods and services in the UAE, introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017.
Source: Federal Decree-Law No. 8 of 2017, Article 2
Who must register for VAT?
Any business with taxable supplies and imports exceeding AED 375,000 in the past 12 months (or expected in the next 30 days) must register. Voluntary registration is available at AED 187,500.
Source: Federal Decree-Law No. 8 of 2017, Articles 13-14
What is the VAT rate?
Standard rate: 5%. Zero-rated: 0% (exports, international transport, certain healthcare and education). Exempt: no VAT charged (some financial services, residential property).
Source: Federal Decree-Law No. 8 of 2017
Filing & Returns
How do I file a VAT return?
Through the EmaraTax portal (eservices.tax.gov.ae). Login with UAE PASS, navigate to VAT, select the tax period, complete Box 1-9, and submit. Payment must be made by the filing deadline.
Source: FTA EmaraTax User Guide
When are VAT returns due?
Quarterly for most businesses (28 days after the end of the quarter). Monthly filing may be required for large businesses. Annual filing is available for some small businesses.
Source: FTA filing calendar
What if I file late?
Late filing penalty: AED 1,000 for the first time, AED 2,000 for repeat offences within 24 months. Late payment: 2% immediately + 4% on the 7th day + 1% daily (max 300%).
Source: Cabinet Decision No. 129 of 2025
VAT Refunds — URGENT for 2026
ACTION NEEDEDWhat is the 5-year refund deadline?
As of January 2026, excess input VAT can only be claimed within 5 years from the end of the relevant tax period. Credits from 2021 will start expiring in 2026. Grace period for 2018-2020 credits until 31 December 2026.
Source: 2026 VAT Law Amendments
How do I claim a VAT refund?
Through EmaraTax: submit a refund application with supporting documents (tax invoices, import declarations, bank statements). Stronger documentation = faster processing.
Source: FTA VAT Refund Guide
Why do refunds get delayed?
Common reasons: non-compliant invoices, VAT mismatches between supplier and buyer, unpaid penalties blocking the refund, weak recordkeeping, claiming non-recoverable input VAT (e.g., entertainment expenses).
Source: FTA, industry experience
What documentation do I need?
Valid tax invoices meeting FTA requirements, import declarations from customs, bank statements showing payments, contracts for large transactions, and a reconciliation between your VAT return and accounting records.
Source: FTA VAT Refund Guide
Input VAT & Deductions
What input VAT can I claim?
Input VAT on goods and services used for making taxable supplies. You cannot claim input VAT on: entertainment expenses, motor vehicles (unless for resale or specific business use), and goods/services for exempt supplies.
Source: Federal Decree-Law No. 8 of 2017, Article 54
Can FTA deny my input VAT claim?
Yes. Under the 2026 amendments, FTA can deny input VAT deduction if it determines the supply is part of a tax evasion arrangement. You must verify the legitimacy of supplies.
Source: 2026 VAT Law Amendments
Last verified: 1 May 2026
Sources: Federal Decree-Law No. 8/2017, Cabinet Decision No. 52/2017, Cabinet Decision No. 129/2025. Always check tax.gov.ae.