VAT has applied in the UAE since January 2018 at a standard rate of 5%. Whether you must register, how often you file, and when payment is due all follow clear FTA rules. Here is the practical guide, plus how Consaya keeps your VAT 201 filing-ready.
Mandatory registration: businesses whose taxable supplies and imports exceed AED 375,000 over the previous 12 months (or are expected to in the next 30 days) must register for VAT.
Voluntary registration: available once taxable supplies or taxable expenses exceed AED 187,500 — useful for startups that want to reclaim input VAT before they hit the mandatory threshold.
Most businesses file VAT returns quarterly. Larger businesses — typically those with annual turnover above AED 150 million — file monthly.
Each VAT return (the VAT 201) and any payment due is filed within 28 days of the end of the tax period. Miss it and administrative penalties apply, so the filing calendar matters as much as the numbers.
The VAT 201 captures output VAT on your standard-rated, zero-rated and exempt supplies, input VAT on your purchases and expenses, reverse-charge entries, and adjustments — netting to the VAT payable or refundable for the period.
The hard part is not the form. It is keeping every invoice, credit note and expense classified correctly and reconciled throughout the quarter so the return is accurate when it is due.
Consaya applies 5% VAT to invoices automatically, tracks input and output VAT as you go, and generates a VAT 201 pack on demand — so filing is a review, not a reconstruction.
Because the same ledger feeds corporate tax and, soon, e-invoicing, your compliance stays consistent across every obligation. Consaya is software, not an FTA-registered Tax Agent.
The standard VAT rate in the UAE is 5%. Certain supplies are zero-rated or exempt under FTA rules.
Registration is mandatory when taxable supplies and imports exceed AED 375,000 over the previous 12 months. Voluntary registration is available above AED 187,500 of taxable supplies or expenses.
Most businesses file quarterly. Businesses with annual turnover above roughly AED 150 million file monthly. Each VAT 201 return and payment is due within 28 days of the end of the tax period.
The VAT 201 is the UAE VAT return filed with the Federal Tax Authority. It reports output VAT on sales, input VAT on purchases, reverse-charge and adjustments, netting to the VAT payable or refundable for the period.