Value Added Tax (VAT) in the United Arab Emirates (UAE) is an indirect tax imposed on the consumption of goods and services at each stage of the supply chain. Introduced on January 1, 2018, VAT in the UAE is set at a standard rate of 5 percent, applicable to most goods and services unless specifically exempted or zero-rated.

Businesses in the UAE are responsible for collecting VAT on behalf of the government and remitting it to the Federal Tax Authority (FTA). VAT registration is mandatory for businesses meeting certain turnover thresholds, and registered businesses must comply with VAT regulations, including maintaining proper records, issuing tax invoices, and submitting periodic VAT returns.

VAT revenue contributes to the UAE’s public finances, supporting various government initiatives and services. It also aligns the UAE’s tax system with international standards and diversifies the government’s revenue sources beyond oil and gas.

The Samc is one of the leading VAT service providers in UAE, which offers exclusive VAT services including VAT registration, VAT deregistration, VAT return filing, VAT accounting services, and more.