Navigating VAT in the UAE

This guide provides an overview of VAT in the UAE, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within the UAE.

Last Updated: March 2026
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2018

was the year the UAE introduced VAT, after decades of being tax-free.

The UAE at a glance.

Standard rate

5% VAT

Digital services VAT

Yes, at 5%

Mandate e-invoicing

Voluntary

Currency

Dirham (AED)

Zero-rated items

Zero-rated VAT applies to exports, international transport and related supplies, certain transport equipment, and selected healthcare and education services.

VAT format

15 digits

Fiscal representation

No, not strictly required, but common.

Reclaiming VAT in the UAE.
Reclaiming
VAT in the UAE.

Foreign businesses that incur VAT on eligible expenses in the UAE may be able to reclaim it.

Who can reclaim?
The UAE applies the rule of reciprocity. This means the UAE allows VAT refunds for foreign businesses, but only if they are based in approved countries.
Eligible countries with full reciprocity include:
Eligible countries with limited reciprocity include:
Claimable expenses:
Entertainment Non-reclaimable
Accommodation 5%
Food, drink & restaurant services 5%
Entertainment
Hiring means of transport Non-reclaimable
Fuel 5%
Public Transport 0%
Taxis 0%
Travel Related
Admission to fairs & exhibitions 5%
Training courses & seminars 5%
Events
Goods 5%
Inter-company charges 5%
Office expenses 5%
Marketing costs 5%
Professional fees & AP invoices 5%
General Expenses
Entertainment
Non-reclaimable
Accommodation
5%
Food, drink & restaurant services
5%
Entertainment 1 2
Hiring means of transport
Non-reclaimable
Fuel
5%
Public Transport
0%
Taxis
0%
Entertainment 2 1
Admission to fairs & exhibitions
5%
Training courses & seminars
5%
Goods
5%
Inter-company charges
5%
Office expenses
5%
Marketing costs
5%
Professional fees & AP invoices
5%
Entertainment 4
e-invoicing in the UAE.
e-invoicing
in the UAE.
Summary of the mandate in this country

B2G mandate in place

No

B2B mandate in place

No

B2C mandate in place

No

Obligation status: B2B e-Invoicing

From 1 July 2026

B2B e-Invoicing model

5-Corner Clearance Model

Name of exchange infrastructure

In progress (no live platform yet)

Format(s) used

Peppol PINT AE

FAQs

The following expenses would generally be eligible for a refund of UAE VAT: Fuel; Accommodation; Food, drink and restaurant services; Admission to fairs and exhibitions and other general business expenses (such as professional fees).

Only a single (annual) claim for a refund of UAE VAT may be submitted.

A claim for a refund of UAE VAT must exceed AED 2000.00.

Nearby countries.

Explore indirect tax information in these countries:

Related content.

Aug
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WEBINAR
eezi by VAT IT is now a UAE Pre-Approved e-Invoicing Provider. Join us and SAP Concur on 23 July to find out what the mandates mean for your business.
Aug
18
WEBINAR

This webinar explains how US businesses can identify and recover foreign VAT, breaking down key concepts like reciprocity and showing where refund opportunities are often missed.