The UAE charges VAT at 5% on most goods and services. It sounds simple — until you meet zero-rated exports, exempt supplies, the reverse charge on imported services, designated zones, partial recovery and the FTA’s documentation rules. Most VAT penalties come from small, repeated mistakes, not from fraud.
SJPR runs your VAT as a monthly routine: invoices checked as they arrive, the return prepared from reconciled books and filed well before the deadline, and every refund claimed.
When you must register
- Mandatory when taxable supplies and imports exceed AED 375,000 in the last 12 months, or are expected to in the next 30 days.
- Voluntary from AED 187,500 of supplies or expenses — useful for start-ups that want to recover input VAT.
- Non-resident businesses making taxable supplies in the UAE must register from the first dirham.
- Late registration is penalised — we check your position before you cross the threshold.
Returns, payments and refunds
Most businesses file quarterly; larger ones monthly. The return and the payment are due 28 days after the end of the tax period. Since 14 April 2026 late payment costs 14% a year on the unpaid amount.
Excess input VAT can be refunded or carried forward — but since 1 January 2026 a credit can only be carried forward for five years from the end of the period in which it arose. Older credits need action now: a transitional window for them closes on 31 December 2026. We review your balance and file the refund claims.
The 2026 VAT amendments in brief
- No more self-invoicing for supplies under the reverse charge — keep the supplier’s invoice and the import documents instead.
- Five-year limit on carrying forward excess recoverable VAT.
- The FTA can deny input VAT where a supply is linked to tax evasion and you knew — or should have known. Supplier checks matter.
- Time limits now follow the general Tax Procedures Law.
What SJPR does every period
- Sales and purchase invoices checked for valid TRNs, wording and VAT treatment.
- Reverse charge, imports and designated-zone supplies reviewed.
- Return prepared from reconciled books and approved by you in SJPR BiX.
- Filing on EmaraTax and a payment reminder before the due date.
- Refund claims and FTA queries handled by the same team.
From 2027 your invoices will also have to travel through the national e-invoicing system — we prepare you for it.
Frequently asked questions
How long does VAT registration take?
Usually two to four weeks on EmaraTax once the documents are complete. We prepare the application, answer the FTA’s questions and record your TRN in SJPR BiX.
Can a free zone company charge 0% VAT?
Only supplies made in or between designated zones can be outside the scope of VAT, and only for goods under strict conditions. Most free zone companies charge 5% like everyone else. We check your activity before you invoice.
Can I recover VAT paid before registration?
In some cases, yes — input VAT on goods and services bought before registration can be recovered if conditions are met. We include it in your first return.
What changed for imported services in 2026?
Since 1 January 2026 you no longer issue a tax invoice to yourself under the reverse charge. You keep the supplier’s invoice and the supporting documents and account for the VAT in your return.
What happens to old VAT credits?
Since 2026 excess recoverable VAT can only be carried forward for five years. A transitional window for older credits closes on 31 December 2026, so review and claim them now.
This guide reflects UAE law and FTA guidance as at October 2026. It is general information, not advice for your specific situation — rules and thresholds change, so speak to an SJPR advisor before acting.
