What is the UAE VAT rate?

5% — the standard rate since VAT was introduced on 1 January 2018.

Are exports zero-rated?

Exports of goods and services to outside the GCC are listed by the Ministry of Finance as zero-rated.

Can input VAT be recovered on exempt supplies?

No. Where an expense relates to an exempt supply, the registered person may not recover the input tax paid.

When must a business register?

When its taxable supplies and imports exceed AED 375,000. Voluntary registration is possible above AED 187,500.

On the UAE Ministry of Finance website (mof.gov.ae) and with the Federal Tax Authority (tax.gov.ae).

UAE VAT 5% 2027 Foundation Calculator

UAE Value Added Tax was introduced on 1 January 2018 at a standard rate of 5%, and that is still the rate published by the UAE Ministry of Finance (checked October 2026). This calculator adds 5% VAT to a standard-rated supply and shows that zero-rated and exempt supplies carry no VAT. A business must register when its taxable supplies and imports exceed AED 375,000, and may register voluntarily above AED 187,500.

Pre-VAT supply value (AED)

Supply type

Standard Rate

VAT applies at a standard rate of 5%. A VAT-registered business must charge VAT on the taxable goods or services it supplies and may reclaim VAT it has paid on business-related goods or services. Example: a supply worth AED 100,000 carries AED 5,000 of VAT, for a total of AED 105,000.

Zero-Rated Sectors

The Ministry of Finance lists these as zero-rated: exports of goods and services to outside the GCC; international transportation and related supplies; supplies of certain sea, air and land means of transportation; certain investment-grade precious metals; newly constructed residential properties supplied for the first time within three years of their construction; and essential or designated education and healthcare services with relevant goods and services.

Exempt Supplies and Input VAT

Supplies of residential properties are generally exempt, while sales or leases of commercial properties are taxable at 5%. Input tax can be recovered in full if it relates to a taxable supply. Where the expense relates to a non-taxable supply such as an exempt supply, the registered person may not recover the input tax paid.

Source and Disclaimer

The 5% rate and the registration thresholds are the ones currently published by the UAE Ministry of Finance; no different rate for 2027 has been published. Estimates only — not tax advice.

Source: UAE Ministry of Finance — Value Added Tax (VAT). Last updated: October 2026.