UAE VAT runs at a standard rate of 5 percent under Article 3 of Federal Decree-Law 8 of 2017, and corporate tax at 0 percent on taxable income up to AED 375,000 and 9 percent above that under Article 3 of Federal Decree-Law 47 of 2022, both read in the Ministry of Finance consolidated texts on 31 July 2026. They are two separate registrations with two separate triggers, and a business can owe one and not the other. We work out which apply to you, register you with the Federal Tax Authority, and keep the filings on the calendar. This is for companies passing the VAT threshold, newly incorporated companies of any size including free zone companies, and foreign sellers holding stock in the UAE.
Key Features
- Trigger check first: the AED 375,000 VAT threshold applies to residents, while the Federal Tax Authority states that for non-resident suppliers the registration threshold is in effect nil
- VAT application filed within the 30 day window set by Article 7(2) of the VAT Executive Regulation, Cabinet Decision 52 of 2017 as amended
- Corporate tax registration inside 3 months of incorporation for companies formed on or after 1 March 2024, per FTA Decision 3 of 2024, free zone companies included because 0 percent is a rate and not an exemption from registering
- Quarterly VAT returns filed and paid by the 28th day after each tax period, corporate tax returns within 9 months of the tax period end under Article 53(1)
- You supply your trade licence, your financial year end, your revenue figures, and how your goods reach the customer, which is what decides whether the obligation exists at all
Benefits for Your Business
- Registered inside the statutory window, so the AED 10,000 late registration penalty set by the Federal Tax Authority in Cabinet Decision 75 of 2023 does not arise.
- A clear answer on whether your free zone company must still register, which it usually must.
- Small Business Relief assessed each period, while it lasts, as it is legislated only to periods ending on or before 31 December 2026.
- VAT and corporate tax kept apart, so an obligation under one is not mistaken for an obligation under the other.
General information, not tax advice. Every rate, threshold and deadline above was checked against UAE Federal Tax Authority and Ministry of Finance publications on 31 July 2026. What applies to your business depends on its own facts, and you should confirm your position before you act.