Home / VAT Rates / United Arab Emirates
United Arab Emirates VAT Rates 2026
United Arab Emirates (الإمارات العربية المتحدة) levies Value Added Tax as VAT (ضريبة القيمة المضافة). The standard rate is 5%, applied to most goods and services. United Arab Emirates applies a single flat rate with no reduced rates.
Rate update
UAE introduced VAT at 5% in January 2018. Financial services, residential buildings (first supply), and bare land are exempt. The Federal Tax Authority (FTA) administers VAT.
Current rates — 2026
| Type | Rate | Applies to |
|---|---|---|
| Standard | 5% | Most goods and services |
| Zero-rated | 0% | Healthcare, education, local passenger transport, oil and gas exports |
Registration and filing
| Registration threshold | AED 375,000Mandatory threshold (~USD 102,000); voluntary from AED 187,500 |
| Tax authority | Federal Tax Authority (FTA) |
| Filing frequency | Quarterly returns for most businesses via the EmaraTax portal |
Access rates via API
The TaxID API returns current VAT and GST rates for 200+ countries and territories. Use the /api/v1/rates/AE endpoint to get United Arab Emirates data programmatically. Responses are cached for 24 hours.
curl https://www.taxid.dev/api/v1/rates/AE
# No authentication required for rate lookups
# Response:
# { "country_code": "AE", "tax_type": "vat",
# "standard_rate": 5, "reduced_rates": [0],
# "currency": "AED", "last_updated": "2026-01-01" }Applying the correct rate in code
For B2B sales to United Arab Emirates, validate the customer's TRN first — a verified registration is typically required for correct invoicing and zero-rated exports. For B2C, charge the United Arab Emirates VAT rate where registration rules require it.
// 1. Validate the customer's United Arab Emirates tax ID
const check = await fetch(
'https://www.taxid.dev/api/v1/validate/AE/CUSTOMER_TAX_ID',
{ headers: { Authorization: 'Bearer YOUR_API_KEY' } }
).then(r => r.json());
// 2. Fetch current United Arab Emirates VAT rates (no auth required)
const rates = await fetch('https://www.taxid.dev/api/v1/rates/AE').then(r => r.json());
// → { standard_rate: 5, reduced_rates: [0] }
// 3. Apply the correct treatment for your supply
applyRate(check.valid && isB2BExport ? 0 : rates.standard_rate);About United Arab Emirates VAT
The UAE introduced VAT only in 2018, as part of a GCC-wide framework, and has held the line at 5% — among the lowest VAT rates in the world — even as neighbouring Saudi Arabia tripled its rate. Designated free zones receive special treatment, with qualifying goods transactions outside the scope of VAT. The FTA's EmaraTax platform handles registration and filing, and e-invoicing is being phased in from 2026 under the "Peppol-based" UAE model.
VAT in United Arab Emirates is administered by the Federal Tax Authority (FTA). Before applying any zero-rate or exemption to a United Arab Emirates business customer, validate their registration first.
Sources: PwC Worldwide Tax Summaries · Federal Tax Authority (accessed Jun 2026)
Rate history
- 2018VAT introduced at 5% under the GCC framework agreement
Frequently asked questions
What is the VAT rate in the UAE in 2026?
5% standard with zero-rating for exports, international transport and first-supply residential property — among the lowest VAT rates worldwide.
Do UAE free zones pay VAT?
Around 20+ "designated zones" are treated as outside the UAE for certain goods transactions, but services and most B2C supplies remain subject to normal 5% VAT.
Related concepts and guides: