UAE VAT for Ecommerce: What Every Seller Must Know
The UAE introduced Value Added Tax (VAT) at 5% on 1 January 2018. For ecommerce sellers, understanding VAT obligations is critical to avoiding penalties and maintaining compliance.
When Do You Need to Register for VAT?
You must register for UAE VAT if your taxable turnover exceeds AED 375,000 in any 12-month period. Voluntary registration is available if your turnover exceeds AED 187,500. For marketplace sellers, your gross sales value (before platform fees) counts toward this threshold.
VAT on Amazon and Noon Sales
For UAE-based sellers, you must charge 5% VAT on all sales to UAE customers. Amazon and Noon will show prices inclusive of VAT on the product listing — you must ensure your pricing accounts for this. Both platforms provide VAT invoices to customers when required.
Input Tax Recovery
As a VAT-registered business, you can reclaim VAT paid on business expenses — including platform fees, shipping, warehousing, and marketing costs. Keep all invoices and maintain proper records.
Filing VAT Returns
UAE VAT returns are filed quarterly through the Federal Tax Authority (FTA) portal. Ensure your accounting records are accurate and reconcile with platform reports before filing. Late filing penalties start at AED 1,000.
Use our free UAE VAT calculator to quickly calculate VAT for your products.