UAE VAT is 5% and applies to most goods and services you sell online; it is administered by the Federal Tax Authority (FTA). Registration becomes mandatory once your taxable supplies exceed the FTA's mandatory registration threshold, and you may register voluntarily above a lower threshold. Once registered you charge 5% on sales, show consumers VAT-inclusive prices, issue tax invoices with your Tax Registration Number (TRN) and file periodic returns.
- vat for online sellers uae
- do i need to register for vat in the uae as an online store
- how to calculate 5 percent vat uae
- uae vat registration emaratax
- do uae prices have to include vat
- vat on delivery charges uae ecommerce
Do online sellers in the UAE have to charge VAT?
Yes. VAT for online sellers in the UAE works the same way as for any other business: the standard rate is 5% and it is administered by the Federal Tax Authority (FTA). There is no separate tax regime for selling online; what determines your obligations is what you sell, who you sell to, and the value of your taxable sales over time.
So an Instagram shop, a delivery app, a course platform and a free zone e-commerce company all face the same questions: do I have to register? How do I show prices? What goes on the invoice? What happens when a customer returns something? This guide answers them in practical terms and explains what your store or app needs to do technically.
If you have not licensed your business yet, read how to start an online business in Dubai first. If you also sell in Saudi Arabia, the rules differ (the rate there is 15%); see VAT for Saudi online sellers.
When do you have to register for VAT?
The FTA sets two thresholds: a mandatory registration threshold, which obliges you to register within the set deadline once your taxable supplies exceed it, and a lower voluntary registration threshold, which lets you register by choice. We do not quote the figures here because you should take them straight from the source, so check the current numbers and how they are calculated on the FTA's website.
The key point: the test usually looks at both your actual sales over a past period and your expected sales in the coming period. A small store that grows fast during a season such as Ramadan, White Friday or the Dubai Shopping Festival can cross the line sooner than expected. Watch your sales monthly; do not wait until year end.
- 1Track your taxable sales
Use your store's admin dashboard to see total monthly sales and compare them with the FTA thresholds.
- 2Create an EmaraTax account
EmaraTax is the FTA's online portal, where you submit your registration application.
- 3Prepare your documents
Trade licence, owner or authorized signatory ID, bank details and evidence of your sales value.
- 4Receive your TRN
Once approved you get a Tax Registration Number, which must appear on your invoices.
- 5Update your store straight away
Add the TRN to invoices, switch on VAT calculation and note your periodic return deadlines.
How do you show prices and calculate 5% VAT?
In the UAE consumers expect to see prices including VAT, so do not surprise them by adding 5% at checkout. Inside your system, store the pre-VAT price and the rate, then calculate the total, so the invoice comes out right.
| Line | Before VAT | VAT 5% | Total |
|---|---|---|---|
| Perfume | AED 200 | AED 10 | AED 210 |
| Delivery fee | AED 20 | AED 1 | AED 21 |
| Promo code discount | -AED 40 | -AED 2 | -AED 42 |
| Order total | AED 180 | AED 9 | AED 189 |
To extract VAT from an inclusive price, divide by 1.05 to get the pre-VAT price; the difference is the VAT. For example, AED 105 inclusive is AED 100 before VAT plus AED 5 VAT. Note that delivery fees you charge the customer are part of the sale and usually taxed at the same rate, and that discounts are applied before VAT is calculated.
- Round VAT at invoice level in a consistent, documented way; do not change the method from order to order.
- If you price in other currencies, show the amounts and VAT in AED on the invoice as well.
- Payment gateway and BNPL fees you pay to the provider are a separate matter from the VAT on your sale to the customer.
What does a tax invoice need for an online store?
Once registered, every taxable sale needs a tax invoice. The rules recognize two types: a full tax invoice, typically used with businesses, and a simplified tax invoice, allowed in certain cases such as sales to consumers. The FTA sets the exact conditions for each.
| Element | Why it matters |
|---|---|
| The words 'Tax Invoice', clearly shown | Distinguishes it from a receipt or order confirmation |
| Supplier name, address and TRN | Proves you are registered and links the invoice to your FTA account |
| A unique sequential invoice number and issue date | Prevents duplicates and makes audits easy |
| Customer details and TRN when selling to a registered business | The business needs them to recover its input VAT |
| Description, quantity and price of goods or services | Shows exactly what was sold |
| Amount before VAT, VAT and total in AED | The basis of your VAT return |
This is a short list for general understanding. For the full checklist see UAE tax invoice requirements. When an order is returned or cancelled after invoicing, never delete the invoice; issue a credit note linked to the original invoice that reverses the matching VAT.
Special cases online stores run into
- Selling goods to a consumer in the UAE with local delivery
- Selling a booking or subscription service to a resident
- Local delivery fees added to the order
- Discounts and promo codes applied before VAT
- Exports outside the UAE, which may be zero-rated subject to conditions and evidence
- Selling to customers in other GCC countries
- Selling through a marketplace, in your name or the platform's
- Gift cards, vouchers and loyalty points
- Products that may be exempt or zero-rated
Not everything that looks simple is. Gift cards, for example, may be treated differently from an ordinary sale, and proving an export requires keeping shipping documents. If a large share of your sales falls outside the simple cases, sit down with a tax adviser before you build pricing logic into your store.
How do you set up your store or app for VAT?
Tax compliance is ultimately structured data. If your store's database records every price, tax amount, discount and refund correctly, filing a return becomes a report export rather than a week of spreadsheets.
| Feature | What it does |
|---|---|
| Tax settings | Stores your TRN and rate, and switches VAT on or off with your registration status |
| VAT-inclusive prices | Shows the customer the inclusive price while keeping the pre-VAT price internally |
| Automatic invoices | Issues a sequentially numbered tax invoice after payment and sends it by email or WhatsApp |
| Credit notes | Links refunds to the original invoice instead of deleting it |
| Return report | Exports sales and VAT by period for your accountant |
Add UAE VAT handling to my store. In settings: our TRN, a 5% rate and a switch to enable VAT. Store each product's pre-VAT price and show customers the VAT-inclusive price in AED. Calculate VAT on products and delivery fees after promo codes are applied. After payment, issue a sequentially numbered tax invoice with our company name, address and TRN, the customer's details, line items, amount before VAT, VAT and total, and send it by email and WhatsApp. On a refund, issue a credit note linked to the invoice. In the admin dashboard, add a report that exports sales and VAT per quarter to Excel.
Try it in FanannRemember that your payment gateway settles the net amount after its fees, while your invoice to the customer stays at the full amount. Choosing a gateway is covered in the best payment gateway in the UAE.
Coming next: e-invoicing and corporate tax
The UAE is moving to e-invoicing under Ministerial Decisions 243 and 244 of 2025, through Accredited Service Providers (ASPs) on a Peppol model. A voluntary pilot started on 1 July 2026. Businesses with revenue of AED 50 million or more appoint an ASP by 30 October 2026 and go live on 1 January 2027; smaller businesses appoint an ASP by 31 March 2027 and go live on 1 July 2027. B2C invoices are out of scope for now.
If you also sell to businesses, start preparing now; the details are in the UAE e-invoicing timeline. Alongside VAT there is corporate tax at 9% on profits above a threshold, a separate topic worth reviewing with your accountant. Verify all of these dates with the Ministry of Finance and the FTA.
- Total your taxable sales and compare them with the FTA's current thresholds.
- Register through EmaraTax when required and get your TRN.
- Make your store show inclusive prices and issue correct invoices and credit notes.
- Export a periodic report for your accountant before each return deadline.
- If you sell to businesses, get your data ready for e-invoicing.
Key takeaways
- The standard rate is 5%, administered by the Federal Tax Authority; you register through its EmaraTax portal.
- Registration depends on your taxable sales against the mandatory and voluntary thresholds; check the current figures with the FTA.
- Show consumers VAT-inclusive prices, and apply VAT to delivery fees and add-ons, not just products.
- Your store must issue correct tax invoices, handle refunds with credit notes and export return-ready reports.
- B2B e-invoicing arrives from 2027, so pick a system that keeps your data structured from today.
Frequently asked questions
Do online stores in the UAE have to pay VAT?
When do I need to register for VAT in the UAE?
How do I calculate 5% VAT from an inclusive price?
Do UAE prices have to include VAT?
Does UAE e-invoicing cover sales to consumers?
Ask your AI assistant about this
Copy this prompt into the AI assistant you use, then add the details of your own case.
I am reading this guide: “VAT for online sellers in the UAE: registration, invoices and prices” https://fanann.com/en/blog/vat-uae-online-sellers/ My question: vat for online sellers uae Use that page as a source and explain the answer step by step for my situation, tell me what to check before I start, and cite the page link.