VAT (Value Added Tax) was introduced in the year in the UAE. The VAT in UAE is 5%. VAT is levied on most of the goods and services including food, jewellery, hotel services, etc. Some of the services come under VAT exempt or zero rate.
The VAT Calculator in the UAE helps in calculating the total amount of goods and services after 5% VAT is added.
These are the goods and services which belong to the 0% VAT rate category in the UAE
- Goods and services exported outside the GCC
- International transportation and related products
- Certain sea, land and air means of transportation (such as aircraft and ships).
- Investment-grade precious metals like Gold, Silver, etc
- Newly constructed residential properties. Properties that are supplied for the first time within three years of their construction
- Education services and relevant supplies
- Healthcare services and relevant supplies
These are the products and services that belong to the VAT exemption category in the UAE
- Residential properties
- Local passenger transport
The UAE government also provides VAT refunds on certain goods and services purchased in the UAE like,
- UAE Tourists can claim a refund on their purchases made in the UAE like Gold
- Foreign businesses can claim the refund
- Foreign Government and International Organizations
- UAE nationals building new residences can claim the refund
Taxable businesses must register for VAT in the UAE and file for “VAT returns” at the end of the taxation period. The eligible businesses can complete VAT registration with FTA online and claim for refunds and pay returns as per the requirement. Businesses must file for VAT returns within 28 days of the end of their tax period.
The VAT return will be provided to FTA Online on eservices.tax.gov.ae/. The time period for eligible businesses for VAT return with FTA online is
- For businesses with an annual turnover below AED 150 million, the tax period is quarterly
- For businesses with an annual turnover of AED 150 million or more, the tax period is monthly.