Every VAT-registered business in the UAE must file a VAT return. After registering for VAT services in Dubai, you must submit your return and pay any VAT due within 28 days of the end of your tax period. Late or incorrect returns can lead to a Federal Tax Authority (FTA) audit and penalties.
How to file VAT in Dubai
Businesses file the VAT return (Form VAT 201) online through the FTA’s e-Services portal at eservices.tax.gov.ae.
What goes in Form VAT 201
- Details of the taxable person
- The VAT return period
- VAT on sales and other outputs
- VAT on purchases and expenses (input tax)
- Net VAT payable or refundable
- Additional reporting information
- The declaration and authorised signatory
VAT rates in the UAE
- Standard rate: 5%
- Zero-rated: 0% VAT, but you still report these supplies and can recover input tax
- Exempt: no VAT charged, and input tax generally cannot be recovered
Commonly zero-rated supplies
- International transport and related services
- Exports of goods and services outside the GCC
- Investment-grade precious metals such as gold and silver of 99% purity
- Certain sea, air and land transport vehicles such as ships and aircraft
- First supply of newly built residential property within three years of completion
Commonly exempt supplies
- Local passenger transport
- Sale and lease of bare land
- Resale and rental of residential property
- Certain financial services
How to deregister for VAT
A business that no longer needs to be registered can apply online to the FTA to cancel its Tax Registration Number (TRN). Only registered businesses can deregister, and any outstanding returns and payments should be settled first, to avoid penalties.
What is VAT reconsideration?
If you disagree with an FTA decision, such as a penalty, you can ask for a reconsideration. The request generally has to be filed within 20 business days of the decision. The FTA reviews it and may reduce or cancel the penalty if you provide supporting evidence.
Final thoughts
Even one mistake in VAT reporting can lead to fines, so it is worth working with a qualified tax consultant. Rules and deadlines can change, so confirm the latest requirements on the FTA website.
