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Regulations · UAE

UAE VAT for Ecommerce Sellers: Registration, Imports and Filing

UAE VAT is 5%. Local businesses must register once taxable sales pass AED 375,000 a year and can opt in from AED 187,500. Foreign sellers get no threshold: if you sell from UAE stock, you register from the first sale. Returns are usually quarterly, and e-invoicing starts in 2027.

MayaBy MayaUpdated 8 min read
Key takeaways
  • UAE VAT is 5%, one of the lowest rates in the world, and it's included in every consumer price.
  • Residents register above AED 375,000 of yearly taxable sales and can opt in from AED 187,500. Foreign sellers with UAE stock register from the first sale.
  • Registered importers don't pay import VAT in cash. They report it on the return and reclaim it in the same return.
  • Amazon and noon add 5% VAT to their fees. Registered sellers get it back.
  • E-invoicing goes live on 1 January 2027 for businesses with AED 50 million or more in revenue, and on 1 July 2027 for everyone else.

The UAE charges 5% VAT, a third of Saudi Arabia's rate. For an online seller, that's a small, predictable tax that's easy to build into your price.

You don't need to register on day one if you're a small local business. Foreign sellers with stock in the UAE do.

The rules are clear, the portal is in English and Arabic, and registration is free.

Here's when you must register, how VAT works on imports and marketplace fees, and what one real quarter looks like.

5%
UAE VAT on most goods and services
FTA, 2026
AED 375,000
Mandatory registration for UAE businesses
FTA, 2026
AED 0
Threshold for foreign sellers
FTA, 2026
1 Jul 2027
E-invoicing go-live for most businesses
UAE MoF, 2026

How does VAT work for online sellers in the UAE?

VAT (value added tax) is a 5% tax on sales in the UAE. You add it to the price, collect it from the shopper and pay it to the FTA (Federal Tax Authority).

You don't pay the full 5% out of your own pocket. Each return subtracts the VAT you paid on your own costs, such as imported stock, marketplace fees and ads.

Where your goods sit decides who deals with the VAT:

  • Cross-border parcels. You ship each order from abroad. The courier pays import VAT to clear the parcel, so you usually don't register.
  • Stock in the UAE. Your goods sit in a 3PL, Amazon FBA or noon FBN. Each sale is a local supply, so you charge 5% and file returns.
  • A UAE company. You follow the normal sales thresholds below.

Selling in several Gulf markets? Compare all six in our guide to GCC VAT rates and thresholds.

When do you have to register?

It depends on whether you're resident in the UAE.

Who you areMust registerCan registerDeadline
UAE company or free zone companyTaxable sales and imports above AED 375,000 in the past 12 months, or expected in the next 30 daysAbove AED 187,50030 days after crossing the line
Foreign seller with UAE stockFrom the first taxable sale–Before your first sale
Foreign seller shipping parcels onlyUsually not––

The FTA states plainly that its threshold doesn't apply to foreign businesses. If you make taxable sales in the UAE and nobody else accounts for the VAT, you register, whatever the amount.

Late registration costs a flat AED 10,000. It's an easy fine to avoid: apply as soon as you cross the line.

Why register early?

Many local sellers opt in from AED 187,500. A VAT number lets you reclaim the 5% on stock, fees and ads, and it makes you look established to business buyers.

The catch? Once registered, your shelf price must carry the VAT. Plan your prices first.

How do you register on EmaraTax?

Registration is online and free. It takes an afternoon if your documents are ready:

  1. 1

    Create an EmaraTax account

    Sign up on the FTA portal. UAE residents can log in with UAE Pass.

  2. 2

    Create a taxable person profile

    Add your company as the taxable person. Foreign sellers choose the non-resident route.

  3. 3

    Fill in the VAT registration form

    Upload your trade licence or home-country registration, owner IDs, bank details and a turnover estimate.

  4. 4

    Add your customs codes

    Link any UAE customs registration, so import VAT can be reverse-charged.

  5. 5

    Submit and get your TRN

    The FTA reviews the form and issues your 15-digit tax registration number.

Prefer to hand it off? Compare VAT and tax advisors in the UAE. The same EmaraTax account also handles UAE corporate tax.

Import VAT and the reverse charge

Goods entering the UAE pay 5% import VAT on their customs value plus duty. How you pay it depends on your status.

  • Not registered. You or your clearing agent pay the VAT in cash at customs. It's a cost you can't reclaim.
  • Registered. You pay nothing at the border. The VAT goes on your return under the reverse charge, and you reclaim it in the same return.

For example, a container worth AED 42,000 after duty carries AED 2,100 of import VAT. A registered importer reports it and reclaims it, so the cash cost is zero.

To get this, the customs declaration must carry your customs code linked to your TRN. If someone else imports for you, read our guide to the importer of record.

Shipping parcels instead? Dubai lets parcels up to AED 1,000 in duty-free, but VAT still applies. See GCC duty-free thresholds.

A customs clearing agent and a young Emirati business owner checking cartons of stock at a bright Jebel Ali warehouse at golden hour
Registered importers report import VAT on their return instead of paying it at the border.

VAT on Amazon and noon fees

Amazon.ae and noon add 5% VAT to their referral, fulfilment and storage fees. If you're registered, you reclaim it on your return.

If you're not, it's simply part of your cost. That's one more reason to register once your fees grow.

Two more marketplace rules:

  • Fees are charged on the VAT-inclusive price. Noon takes its referral fee on the price the shopper pays, VAT included.
  • Noon lets small UAE sellers start without VAT. You tick "Non-VAT Registered" during sign-up, then add your TRN later.

Model the full picture with the Amazon and noon fee calculator.

Prices, invoices and returns

Three routines keep you compliant once you're registered.

Show VAT-inclusive prices

Article 38 of the VAT Decree-Law and Article 27 of its Executive Regulation require consumer prices to include VAT. The fine is AED 5,000 per violation.

The store settings are in our guide to VAT-inclusive pricing.

Issue tax invoices

Each one shows the words "Tax Invoice", your TRN, a number, the date and the VAT amount in AED. Sales to consumers can use a simplified tax invoice.

File a return every quarter

The return and payment are due on the 28th day after the period ends. So the July–September quarter is due by 28 October.

E-invoicing: what changes in 2027

E-invoicing means invoices travel in a structured format through an accredited service provider (ASP), not as PDFs. The rules come from Ministerial Decisions 243 and 244 of 2025, as amended by Ministerial Decision 66 of 2026.

The first phase covers business-to-business and business-to-government invoices. Your dates depend on revenue:

  1. 30 Oct 2026
    Large businesses appoint an ASP

    Revenue of AED 50 million or more.

  2. 1 Jan 2027
    Go-live for large businesses

    Revenue of AED 50 million or more.

  3. 31 Mar 2027
    Everyone else appoints an ASP

    Revenue below AED 50 million, and government entities.

  4. 1 Jul 2027
    Go-live for businesses below AED 50 million

    Most ecommerce sellers fall here.

  5. 1 Oct 2027
    Go-live for government entities

    Business-to-government invoices follow.

Most online sellers have until 31 March 2027 to pick a provider. Ask your platform or accounting tool which ASP it connects to before you choose.

Worked example: one quarter with FBA stock in Dubai

A UK skincare brand with no UAE company registered for VAT, then imported one shipment into Amazon FBA UAE.

Its quarter:

  • Stock: 1,000 serums with a customs value (CIF) of AED 40,000. Add the 5% duty and import VAT is charged on AED 42,000.
  • Sales: 800 serums on Amazon.ae at AED 105, VAT included.
  • Amazon fees: AED 25 per unit, plus 5% VAT.
LineCalculationAED
Sales, VAT included800 × 10584,000
Output VAT on sales84,000 × 5/1054,000
Import VAT, reverse-charged42,000 × 5%+2,100
Import VAT reclaimedsame amount−2,100
VAT on Amazon fees800 × 25 × 5%−1,000
VAT to pay the FTA3,000

The brand pays AED 3,000, not AED 4,000. It paid no VAT at the border, and its fee VAT came back.

Check your own numbers

Enter a price and your yearly sales to see the VAT inside the price and whether you must register. Switch to non-resident to see the foreign-seller rule:

GCC VAT calculator

Add or extract VAT, then check whether you need to register

Country

Calculation

AED

VAT rate 5%

Net

AED 190.48

VAT

AED 9.52

Gross

AED 200.00

Net 95.2%VAT 4.8%

Do I need to register?

Compare your annual taxable sales with the registration thresholds · UAE

Your business

AED

Past 12 months, or what you expect over the coming period

  • Mandatory: > AED 375,000
  • Voluntary: > AED 187,500

Voluntary registration available

You are above the voluntary threshold. Registering lets you reclaim input VAT on stock, imports and ads, but you must then charge VAT and file returns.

AED 125,000 to go before mandatory registration

Estimates based on published VAT rules as of Oct 2026. Not tax advice; confirm with ZATCA, the FTA, NBR, the Oman Tax Authority or a licensed tax agent.

The calculator also has its own page: the GCC VAT calculator.

Notes for foreign sellers

  • Register before stock lands. There's no threshold, so the first FBA or 3PL sale is taxable.
  • Get a UAE customs code. It's what makes the reverse charge on imports work.
  • Use a tax agent for the first return. It's cheaper than fixing a wrong one.

Notes for free zone companies

  • Free zone companies follow the same thresholds as mainland companies.
  • Stock held in a designated free zone is outside UAE VAT until it moves to the mainland, where 5% applies.
  • Corporate tax is separate. Sales to UAE shoppers rarely count as qualifying income. See free zone vs mainland.

Notes for sellers expanding to Saudi Arabia

  • Saudi VAT is 15% and needs its own ZATCA registration for Saudi stock.
  • noon's Global store lets a UAE VAT-registered seller list in Saudi Arabia without a Saudi company.
  • The full route is in our UAE-to-Saudi expansion guide.

For licences, consumer law and the other UAE rules, start from our UAE regulations hub.

Frequently asked questions

Yes. Foreign businesses register as non-residents on EmaraTax, the FTA's online portal, using their home-country company documents. You get a TRN (tax registration number) like any local business. Many foreign sellers appoint a registered UAE tax agent to file for them.

Sources & further reading

  1. Cabinet Decision No. 49 of 2021 on administrative penalties — UAE Federal Tax Authority
  2. Registration for VAT — UAE Federal Tax Authority
  3. Value Added Tax (VAT) Registration service — UAE Federal Tax Authority
  4. E-Commerce VAT Guide — UAE Federal Tax Authority
  5. Federal Decree-Law No. 8 of 2017 on VAT — UAE Legislation
  6. eInvoicing (Ministerial Decisions No. 243 and 244 of 2025, as amended) — UAE Ministry of Finance
  7. Release of UAE E-Invoicing Legislation — Deloitte Middle East

This guide is for general information only and is not legal, tax or financial advice. Rules and fees change — always confirm with the official source or a licensed advisor.

Maya
Maya

Maya is MiddleEastEcom's lead guide and editor. She researches GCC marketplaces, payments and regulations and turns them into practical playbooks for sellers.

Meet Maya