The overview includes instructions from FTA and analytical materials from realLaw AI.
Taxation in the UAE is governed at the federal level, ensuring a uniform application of tax rules across all emirates. Special rules established by federal legislation apply to certain transactions in Designated Zones.
Value Added Tax or VAT is an indirect tax that is levied on the value added of most goods (works, services, property rights).
The tax must be paid by the following persons:
1. Taxable persons making any supply specified in the Law;
2. Importers of certain goods specified in the Law;
3. Registered persons receiving goods in accordance with the Law.
VAT is applied equally in all emirates, ensuring a consistent and effective taxation system across the country. And the same for all residents and organizations, regardless of their religious affiliation.
VAT must be paid by the deadline for filing a tax return, which is usually 28 days after the end of the tax period. The standard tax period for a taxable person is three calendar months.
| For example, if the tax period ends on March 31... |