Quick Answer
VAT is the 5% consumption tax applied to most goods and services in the UAE since January 2018. Companies with annual taxable turnover above AED 375,000 must register with the FTA, charge VAT to customers, and file quarterly returns.
VAT registration is mandatory once a company's rolling 12-month taxable turnover exceeds AED 375,000, and voluntary above AED 187,500. Most B2B and B2C transactions are taxable at 5%; some categories (healthcare, education, certain transport, specific food items) are zero-rated, and a small list of activities (residential property rentals, certain financial services) is exempt.
Once registered, you receive a TRN (tax-registration number) that must appear on every tax invoice. You file VAT returns quarterly via EmaraTax — usually within 28 days of the end of each tax period. You collect output tax from customers, pay input tax to suppliers, and remit the net to the FTA.
Failure to register on time is AED 10,000. Late filings start at AED 1,000 per offence. ZETUP PRO assists with FTA registration and TRN issuance; quarterly returns are handled by clients' accountants.
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