VAT for online stores in the UAE: a simple guide

VAT for online stores in the UAE follows the normal UAE VAT rules. The rate is 5%. You must register when your taxable sales plus imports go over AED 375,000 in 12 months. You may choose to register once they pass AED 187,500.

Once registered, you charge VAT, show prices with VAT included, send tax invoices and file a VAT return, usually every quarter. Until you register, you do not charge VAT at all.

The 12 months are rolling, and you have only 30 days to apply once you cross the line. So check your numbers every month, not once a year.

VAT for online stores in the UAE: the rules at a glance

These rules matter most for an online store.

The rules come from the UAE VAT law, Federal Decree-Law No. 8 of 2017. The Federal Tax Authority (FTA) runs VAT through its online portal, EmaraTax.

Do I need to register for VAT?

You must register when either of these is true:

• Your taxable supplies plus imports were over AED 375,000 in the previous 12 months.
• You expect them to go over AED 375,000 in the next 30 days.

Taxable supplies are the sales that VAT applies to. For a store selling products in the UAE, that usually means all its sales. Imports are goods you bring into the UAE, such as stock from a supplier abroad.

Count every channel: your website, Instagram and WhatsApp orders, marketplaces and pop-up markets. At the end of each month, add up the last 12 months.

Example 1: below the threshold

Say you sell abayas online from Sharjah. In the last 12 months you sold AED 290,000 and imported fabric worth AED 40,000, a total of AED 330,000. You do not have to register yet. But you are over AED 187,500, so you may register voluntarily.

Example 2: a big order on the way

Say a company orders gift boxes worth AED 400,000 from your small store, for delivery this month. You expect to go over AED 375,000 in the next 30 days, so you must register now, even though your past sales were low.

Example 3: crossing the line

Say your rolling 12-month total reaches AED 380,000 at the end of October. You are over the threshold, so you must apply within 30 days.

Should you register voluntarily?

You may register voluntarily when your taxable supplies plus imports, or your taxable expenses, are over AED 187,500. Weigh it carefully.

The upside: you can usually reclaim the VAT you pay on business costs, such as stock, packaging and services from VAT-registered suppliers. Business buyers who are VAT-registered can usually reclaim the VAT you charge them, so they do not lose out.

The downside: shoppers cannot reclaim VAT, so your prices rise or your margin falls. You also take on quarterly returns, tax invoices, careful records and the risk of penalties.

For example, say you sell a candle for AED 100. Once registered, you either raise the price to AED 105, or keep it at AED 100. At AED 100, AED 4.76 is VAT, which leaves you AED 95.24.

Our view: voluntary registration often makes sense if you sell mainly to businesses, or have large costs that carry VAT. If you sell small orders to consumers and have few costs, it can cost more than it saves. Ask an accountant to run your numbers, and include their fee when you work out how much your online store costs.

How to register for VAT on EmaraTax

VAT registration for e-commerce businesses happens online on EmaraTax, the FTA's tax portal. The FTA's VAT registration page explains the process.

1. Create an EmaraTax account.
2. Gather your documents. These usually include your trade license, the owner's Emirates ID or passport, contact and bank details, and your sales and import figures. The portal shows exactly what it needs.
3. Complete the VAT registration form and submit it.
4. Receive your TRN. Once approved, you get a TRN (tax registration number).
5. Update your store. Turn on VAT-inclusive prices, add your TRN to invoices, and charge VAT from the date your registration starts.

Apply within 30 days of having to register. The published penalty for late VAT registration has been AED 10,000. Many tax penalties changed, mostly downward, from 14 April 2026, so check the current amount with the FTA.

Your trade license is a key document. If you do not have one yet, see which e-commerce license you need in the UAE.

How to show prices with VAT on your online store

Once registered, every price you advertise to consumers must include VAT. This rule is in Article 38 of the UAE VAT law. So a dress that costs AED 200 before VAT is shown as AED 210, not "AED 200 + VAT".

To find the VAT inside a VAT-inclusive price, divide it by 21. AED 210 contains AED 10 of VAT, and AED 250 contains AED 11.90.

In your store's tax settings, choose to charge UAE VAT at 5% and to include it in your prices. Then place a test order and check the VAT line at checkout. Every store we build includes VAT settings for the UAE. If you are still choosing how to build your store, compare the main ways to build an online store in the UAE.

If you charge for delivery, VAT usually applies to that fee too, so show delivery prices with VAT included. Add these checks to your online store launch checklist.

Tax invoices for online orders

Once registered, you must issue a tax invoice within 14 days of the supply (in simple terms, the sale).

Most online shoppers are consumers, not VAT-registered businesses. For them, a simplified tax invoice is allowed. It must show:

• The words "Tax Invoice".
• Your business name, address and TRN.
• The date.
• A description of what you sold.
• The total and the VAT amount.

A VAT-registered business customer needs a full tax invoice, with more details. The FTA's guide on tax invoices lists them.

Check that your order confirmation email or invoice shows everything above. If not, your developer can add the missing details, or an invoicing app can create a tax invoice for each order. UAE rules generally expect invoices in Arabic, and English can be added, so check what applies to you.

Filing VAT returns and keeping records

A VAT return reports the VAT you charged on sales and the VAT you paid on business costs. In simple terms, you pay the difference.

Returns are usually quarterly, or monthly for turnover of AED 150 million or more. You file and pay online through EmaraTax by the 28th day after each period ends. For example, if your quarter ends on 31 March, the deadline is 28 April.

Check your exact tax periods in EmaraTax, because they do not always match calendar quarters. A registered business usually files for every period, even one with no sales.

Keep these records, organised by month:

• Order exports and sales reports from your store.
• Every invoice you issue, and every refund.
• Purchase invoices for stock, packaging, apps and services.
• Customs and import documents.
• Proof of export for orders sent abroad.
• Statements from your payment provider, from Tabby or Tamara, and your courier's cash on delivery reports.
• Bank statements.

Keep them for as long as the FTA requires, which is several years.

VAT on sales abroad and stock you import

Exports are zero-rated. Goods you physically export within 90 days carry 0% UAE VAT, as long as you keep proof of export. Sales to other GCC countries currently follow the same export rules.

Proof of export usually means your courier's shipping and customs documents showing the goods left the UAE. Ask your adviser exactly what to keep.

Your customer may still pay VAT or duty in their own country. Saudi VAT, for example, is 15%. Our guide to selling to Saudi Arabia from the UAE explains how to handle it.

When you import stock, customs duty is generally 5% of the CIF value (cost, insurance and freight), and VAT may also apply. Imports also count towards your registration threshold.

E-invoicing: does it apply to online stores?

E-invoicing means sending invoices in a fixed digital format through an approved provider, instead of as PDFs or paper. The UAE is bringing it in for business-to-business and business-to-government sales.

At the time of writing (October 2026), sales to consumers are excluded. So a store that sells only to shoppers is not covered at the moment.

If you also sell to businesses, for example wholesale or corporate gifts, these dates apply:

• Revenue of AED 50 million or more: e-invoicing from 1 January 2027.
• Revenue under AED 50 million: appoint an Accredited Service Provider (an approved e-invoicing company) by 31 March 2027, and start on 1 July 2027.

Follow updates on the Ministry of Finance's e-invoicing page.

Corporate Tax for online stores, in brief

Corporate Tax is the other main e-commerce tax in the UAE. It is a tax on profit, not on sales, and it is separate from VAT.

The Ministry of Finance extended Small Business Relief in August 2026. You still have to register and file a return to claim it.

If you trade as an individual rather than through a company, the AED 1 million test applies, even without a license. Once you pass it, you register by 31 March of the following year. Ask an adviser which rules fit your license.

For example, say your company's revenue is AED 900,000 and its taxable income is AED 200,000. You can choose Small Business Relief, because revenue is under AED 3 million. Even without it, AED 200,000 falls in the 0% band.

If you are just starting, our guide on how to start an online store in the UAE shows where tax fits among the other steps.

Frequently asked questions

Do I need to register for VAT for my online store?

You must register if your taxable sales plus imports were over AED 375,000 in the last 12 months. You must also register if you expect to pass that in the next 30 days. You may register voluntarily above AED 187,500. Until you register, you do not charge VAT.

Do prices on my website have to include VAT?

Yes, once you are VAT-registered. Prices you advertise to consumers must include VAT, under Article 38 of the UAE VAT law. Show one final price, such as AED 210, not AED 200 plus VAT.

Do I charge VAT to customers in Saudi Arabia?

Not UAE VAT, if the goods physically leave the UAE within 90 days and you keep proof of export. Such exports are zero-rated, so the rate is 0%. Your customer may still pay Saudi VAT of 15% when the parcel arrives.

Does e-invoicing apply to my online store?

Not if you sell only to consumers, because consumer sales are excluded for now. E-invoicing covers business-to-business and business-to-government sales. If you also sell to businesses, it starts on 1 July 2027 for revenue under AED 50 million, or 1 January 2027 for larger businesses.

Do I pay corporate tax on my online business?

A company pays 0% on taxable income up to AED 375,000 and 9% above it. With revenue of AED 3 million or less, it can choose Small Business Relief for tax periods ending on or before 31 December 2029. It must still register and file to claim it. An individual trader is in scope only when business turnover is over AED 1 million in a calendar year.

Can I charge VAT if I am not registered?

No. Only a business registered for VAT, with a TRN, can charge VAT and issue tax invoices. If you are not registered, do not add VAT to your prices.