United Arab Emirates VAT Rate 2026: 5% Standard Rate

How Much Is VAT in United Arab Emirates?

The standard VAT rate in United Arab Emirates is 5% in 2026, with no reduced rates. It applies to most goods and services sold in United Arab Emirates. Standard VAT/GST rates worldwide range from around 5% to 27%.

How to calculate United Arab Emirates VAT

To add 5% VAT to a net (tax-exclusive) price, multiply it by 1.05. To remove VAT from a gross (tax-inclusive) price, divide it by 1.05.

• Add VAT: AED 100 net × 1.05 = AED 105 gross (that is AED 5 of VAT)
• Remove VAT: AED 105 gross ÷ 1.05 = AED 100 net (that is AED 5 of VAT)

Use the United Arab Emirates VAT calculator above for any amount, or compare United Arab Emirates with every other country in our VAT rates by country table.

Current VAT Rates

Historical VAT Rate Changes

• 2026: Current standard rate in force
• 2018: VAT introduced at 5%

Economic Impact

VAT contributes approximately 20-30% to United Arab Emirates's total tax revenue. The current rate structure balances revenue generation with economic competitiveness within the Middle East region.

Zero-Rated Items

The following items are zero-rated for VAT in United Arab Emirates:

• Exports of goods and services
• International transportation
• Some basic food items
• Children's clothing
• Books and newspapers
• Prescription medications

VAT Exempt Items

The following are exempt from VAT in United Arab Emirates (no VAT charged, no input VAT recovery):

• Financial services
• Insurance services
• Healthcare and medical services
• Education and training
• Postal services
• Charitable activities

Reduced Rate Applications

Items subject to reduced VAT rates in United Arab Emirates:

• No reduced rates apply in this country

The UAE requires VAT registration once taxable supplies exceed AED 375,000 a year; voluntary registration is possible from AED 187,500. Always confirm current thresholds and deadlines with the Federal Tax Authority (FTA), as they are reviewed periodically.

VAT Registration

• Registration Threshold: AED 375,000 (voluntary from AED 187,500)
• Voluntary Registration: Available below threshold
• Registration Process: Online via tax authority website
• Processing Time: Typically 2-4 weeks

VAT Returns and Payment

• Filing Frequency: Monthly or quarterly
• Filing Deadline: End of month following period
• Payment Methods: Bank transfer, online payment
• Late Filing Penalties: Varies by amount and delay

Cross-Border Trade

Special considerations for international transactions:

• Intra-EU Trade: Not applicable (non-EU country)
• Imports: VAT payable at point of entry
• Exports: Generally zero-rated
• Digital Services: Special rules may apply

For background on how the buyer accounts for VAT on intra-EU and cross-border B2B supplies, see the reverse charge mechanism. For B2C digital sales and low-value imports, see VAT on digital services and cross-border e-commerce.

Nearby Countries

What is the current VAT rate in United Arab Emirates?

The standard VAT rate in United Arab Emirates is 5% as of 2026. This applies to most goods and services unless they qualify for reduced rates or exemptions.

How do I calculate VAT in United Arab Emirates?

To add VAT: multiply the net amount by 5%. To remove VAT from a gross amount: divide by 1.05. Use our calculator above for instant results.

Who needs to register for VAT in United Arab Emirates?

The UAE requires VAT registration once taxable supplies exceed AED 375,000 a year; voluntary registration is possible from AED 187,500.

Can I reclaim VAT in United Arab Emirates?

VAT-registered businesses can generally reclaim input VAT on business purchases. Non-EU tourists may claim VAT refunds on qualifying purchases when leaving the country — see our guide to VAT refunds for tourists and non-resident businesses.