VAT for Freelancers in the UAE: Do You Need to Register?

Good news for freelancers in the UAE: there's no personal income tax on your earnings. The tax that matters for most freelancers is VAT.

The 5% VAT rate

VAT in the UAE is charged at 5% on most goods and services. If you're registered, you add 5% to your invoices and remit it to the Federal Tax Authority (FTA) — minus the VAT you paid on business expenses.

Do you need to register?

• Mandatory registration once taxable turnover exceeds AED 375,000 in 12 months.
• Voluntary registration is possible above AED 187,500.

Work out your net VAT

Net VAT payable = VAT collected on sales − VAT paid on expenses. Our free UAE VAT calculator does the math and flags the registration threshold for you.