Value Added Tax
The standard rate is 5%. Resident businesses must register when taxable supplies and imports exceed AED 375,000 over the previous 12 months or are expected to exceed it within 30 days. Voluntary registration is available when taxable supplies and imports, or taxable expenses, exceed AED 187,500 over either period. Expenses are tested separately; non-resident rules differ.
Deduct eligible recoverable input VAT from output VAT. Exclusive amounts: amount × rate. Inclusive amounts: amount × rate ÷ (1 + rate). Exempt supplies are excluded from the 5% sales calculation; zero-rated transactions, imports, reverse charge and adjustments require appropriate separate treatment.
