Free tool
UAE VAT Risk Check
Answer a few quick questions to see your VAT compliance risk score, estimated penalty exposure, and a prioritized action plan.
Understand UAE VAT
The essentials behind your risk score — based on the UAE FTA framework.
Who needs to register for VAT in the UAE?
Registration is mandatory once your taxable supplies and imports exceed AED 375,000 over the past 12 months, or are expected to in the next 30 days. You may register voluntarily above AED 187,500 — useful for startups that want to recover input VAT on early costs.
What is the UAE VAT rate?
The standard rate is 5% on most goods and services. Some supplies are zero-rated (0%) and others are exempt from VAT.
How long do I have to register after crossing the threshold?
You must apply within 30 days of crossing the AED 375,000 mandatory threshold. Late registration carries a penalty of AED 10,000 plus retroactive VAT from the date registration became due.
How often are VAT returns filed, and when are they due?
Most businesses file quarterly; the FTA may require monthly filing for turnover at or above AED 150,000,000. Returns and payments are due within 28 days of the end of each tax period, through the EmaraTax portal.
What are the penalties for VAT non-compliance?
Indicative FTA administrative penalties include late registration AED 10,000; late filing AED 1,000 first time and AED 2,000 for repeats; late payment of 14% per annum on unpaid VAT; and inadequate records AED 10,000 / AED 20,000 for repeats.
What VAT records do I need to keep?
You must issue valid tax invoices and retain VAT accounting records for at least 5 years, reconciled each tax period. Imports and cross-border supplies add reverse-charge and place-of-supply considerations.
Is this VAT Risk Check official tax advice?
No. It is an informational self-assessment that highlights likely risk areas. Confirm your obligations with a qualified tax advisor or the FTA before acting.