11/11/2025
Understanding VAT in the UAE: Rates, Registration & Late Payment Penalties
Key Facts About VAT in the UAE 📜
✅Standard rate: 5% applies to the majority of goods and services.
✅Zero-rated (0%): Exports, international transportation, certain healthcare and education services, and the first sale of new residential property.
✅Exempt supplies: Financial services, domestic passenger transport, and transactions involving bare land.
✅Mandatory registration: Required for businesses whose taxable supplies exceed AED 375,000 per year.
✅Voluntary registration: Optional for entities earning between AED 187,500 and AED 375,000 annually.
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