UAE Tax Calculators

VAT, or Value Added Tax, is a 5% consumption tax levied on most goods and services in the UAE. It's an indirect tax collected by businesses at each stage of the supply chain and ultimately borne by the end consumer. Businesses charge VAT on sales (output VAT) and reclaim VAT paid on purchases (input VAT), remitting the difference to the Federal Tax Authority (FTA).

Businesses must register for VAT if their taxable supplies and imports exceed AED 375,000 annually. Voluntary registration is available for those with taxable supplies or expenses above AED 187,500, benefiting startups or smaller businesses wanting to reclaim input VAT.

Registration is done online via the FTA's EmaraTax portal. You need to create an account, fill out the VAT registration form, and submit documents like a trade license, financial statements, and ID of authorized signatories. A Tax Registration Number (TRN) is issued upon approval, typically within 20 working days.

Exempt supplies include certain financial services, residential property rentals (except the first sale within three years), bare land, and local passenger transport. Unlike zero-rated supplies, businesses cannot reclaim input VAT on exempt supplies.

Zero-rated supplies (e.g., exports, international transport, certain education, and healthcare services) are taxed at 0%, allowing businesses to reclaim input VAT. Exempt supplies have no VAT applied, but input VAT cannot be recovered, making them costlier for businesses.

VAT returns are typically filed quarterly, due within 28 days of the tax period's end. Larger businesses with higher turnovers may be required to file monthly, as determined by the FTA.

Penalties include AED 1,000 for late registration, AED 500 for late filing (first offense, increasing to AED 1,000 for repeats), and 2% of unpaid tax immediately plus 4% monthly for late payments, capped at 300% of the tax due.

Yes, under the Tax Refunds for Tourists Scheme, non-residents can claim VAT refunds on purchases if they export the goods within 90 days, validated at departure points like airports. Refunds are processed via operators like Planet, with cash limits up to AED 10,000.

Commercial property sales and leases are subject to 5% VAT. Residential properties are exempt, except for the first sale or lease within three years of construction, which is zero-rated, allowing developers to reclaim input VAT.

For imports or services from non-residents, the UAE buyer accounts for VAT (both input and output) in their return, neutralizing cash flow impact. This applies to goods imports or services like legal advice from abroad.