Since its introduction in January 2018, UAE VAT has been a critical compliance requirement. Understanding your obligations is essential to avoid significant penalties.
What Is UAE VAT?
VAT in the UAE is levied at 5% on most goods and services, administered by the Federal Tax Authority (FTA).
Who Must Register?
Mandatory registration is required when taxable supplies exceed AED 375,000 per year. Voluntary registration is available from AED 187,500.
How to Register with FTA
Registration is done through the FTA EmaraTax portal. Better Choice manages the entire process on your behalf — from document preparation to submission.
VAT Return Filing
Returns must be filed quarterly within 28 days of period end. Accurate records of all taxable supplies and purchases must be maintained.
Common Mistakes
Late registration, incorrect invoice formats, missing input tax claims, and late filing are the most common errors — each carrying FTA penalties.
Penalties for Non-Compliance
Late registration: AED 10,000 penalty. Late filing: from AED 1,000. Tax evasion: up to 5x the evaded amount.
How We Can Help
Better Choice handles VAT registration and quarterly filing — accurate, on time, and fully FTA compliant.
