United Arab Emirates VAT codes and rates
United Arab Emirates charges VAT at 5%. When you create a company in United Arab Emirates, Nefin sets up 9 sales and 6 purchase codes, each tied to a box of the VAT 201 return. Every invoice and bill line carries one, so the return's totals add themselves up as you work. They fill the VAT 201 - VAT on Sales and All Other Outputs and the VAT 201 - VAT on Expenses and All Other Inputs, ready to file every quarter.
VAT codes from the VAT 201 return
Each code is the box or line it fills on the VAT 201 return, named in the authority’s own wording. Pick one on an invoice or bill line and the amount lands in that box.
| Code | What it covers | Rate |
|---|---|---|
| 1a | Standard rated supplies in Abu Dhabi 5% (Box 1a) | 5% |
| 1b | Standard rated supplies in Dubai 5% (Box 1b)Default | 5% |
| 1c | Standard rated supplies in Sharjah 5% (Box 1c) | 5% |
| 1d | Standard rated supplies in Ajman 5% (Box 1d) | 5% |
| 1e | Standard rated supplies in Umm Al Quwain 5% (Box 1e) | 5% |
| 1f | Standard rated supplies in Ras Al Khaimah 5% (Box 1f) | 5% |
| 1g | Standard rated supplies in Fujairah 5% (Box 1g) | 5% |
| 4 | Zero rated supplies incl. exports (Box 4) | 0% |
| 5 | Exempt supplies (Box 5) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| 9 | Standard rated expenses 5% (Box 9)Default | 5% |
| 3 | Reverse charge - imported services (Box 3 / 10) | 0% |
| 6 | Goods imported into the UAE (Box 6 / 10) | 0% |
| NR-ZR | Zero-rated purchases (no box) | 0% |
| NR-EX | Exempt purchases (no box) | 0% |
| NR-ND | Blocked input tax 5%, e.g. entertainment (no box) | 5% |
United Arab Emirates VAT books
One row per invoice or bill, one column per return box. Nefin builds both books from the codes above.
Sales book
VAT 201 - VAT on Sales and All Other Outputs
Standard rated supplies
- [1a]1a Standard rated supplies in Abu Dhabi
- [1b]1b Standard rated supplies in Dubai
- [1c]1c Standard rated supplies in Sharjah
- [1d]1d Standard rated supplies in Ajman
- [1e]1e Standard rated supplies in Umm Al Quwain
- [1f]1f Standard rated supplies in Ras Al Khaimah
- [1g]1g Standard rated supplies in Fujairah
Zero rated and exempt
- [4]4 Zero rated supplies
- [5]5 Exempt supplies
Totals Nefin calculates
- [1a-VAT] 1a VAT amount (Abu Dhabi)Sum of the tax charged in [1a]
- [1b-VAT] 1b VAT amount (Dubai)Sum of the tax charged in [1b]
- [1c-VAT] 1c VAT amount (Sharjah)Sum of the tax charged in [1c]
- [1d-VAT] 1d VAT amount (Ajman)Sum of the tax charged in [1d]
- [1e-VAT] 1e VAT amount (Umm Al Quwain)Sum of the tax charged in [1e]
- [1f-VAT] 1f VAT amount (Ras Al Khaimah)Sum of the tax charged in [1f]
- [1g-VAT] 1g VAT amount (Fujairah)Sum of the tax charged in [1g]
- [8] 8 Totals - amount (sales boxes 1, 4, 5; add 3 and 6)Sum of the net amounts in [1a] + [1b] + [1c] + [1d] + [1e] + [1f] + [1g] + [4] + [5]
- [8-VAT] 8 Totals - VAT amount (box 1; add 3 and 6)Total of [1a-VAT] + [1b-VAT] + [1c-VAT] + [1d-VAT] + [1e-VAT] + [1f-VAT] + [1g-VAT]
Purchase book
VAT 201 - VAT on Expenses and All Other Inputs
Standard rated expenses
- [9]9 Standard rated expenses
Reverse charge
- [3]3 Supplies subject to the reverse charge provisions
- [6]6 Goods imported into the UAE
Not reported on the return
- [NR-ZR]Zero-rated purchases
- [NR-EX]Exempt purchases
- [NR-ND]Expenses with blocked input tax
Totals Nefin calculates
- [9-VAT] 9 Recoverable VAT amountSum of the tax charged in [9]
- [3-VAT] 3 VAT amount (output tax, 5%)Net amount × 5%, from [3]
- [6-VAT] 6 VAT amount (output tax, 5%)Net amount × 5%, from [6]
- [10] 10 Supplies subject to the reverse charge provisions - amountSum of the net amounts in [3] + [6]
- [10-VAT] 10 Recoverable VAT amount (5%)Net amount × 5%, from [3] + [6]
- [11] 11 Totals - recoverable VAT (9 + 10)Total of [9-VAT] + [10-VAT]
Source
These codes were transcribed from the tax authority's own form or instructions: FTA VAT 201 Returns form User Manual (EmaraTax, Oct 2022) + VAT Returns User Guide V4.0 (2021) - https://tax.gov.ae/DownloadOpenTextFile?fileUrl=en%2FVAT_VAT_Guides%2FVAT_Returns_form%2FProcess_the_VAT_201_returns_form_EN.pdf.
Frequently asked questions
What is the VAT rate in United Arab Emirates?
The standard rate is 5%. Zero-rated, exempt and reverse-charge transactions use their own 0% codes.
Which VAT codes does Nefin set up for a company in United Arab Emirates?
9 sales codes and 6 purchase codes, each named after the VAT 201 return box it fills, for example 1a (Standard rated supplies in Abu Dhabi 5% (Box 1a), 5%), 1b (Standard rated supplies in Dubai 5% (Box 1b), 5%) and 1c (Standard rated supplies in Sharjah 5% (Box 1c), 5%).
How often is the VAT 201 return filed?
Nefin defaults to quarterly filing, the usual period for a small or medium registered business in United Arab Emirates. Your tax authority may assign you a different one.
Are these United Arab Emirates VAT codes official?
Yes. They were transcribed from the tax authority's own form or filling instructions (FTA VAT 201 Returns form User Manual (EmaraTax, Oct 2022) + VAT Returns User Guide V4.0 (2021) - https://tax.gov.ae/DownloadOpenTextFile?fileUrl=en%2FVAT_VAT_Guides%2FVAT_Returns_form%2FProcess_the_VAT_201_returns_form_EN.pdf).
Does Nefin produce the United Arab Emirates VAT books?
Yes. The VAT 201 - VAT on Sales and All Other Outputs lists every invoice and the VAT 201 - VAT on Expenses and All Other Inputs every bill, one row per document with a column for each return box, plus the totals the return asks for.