UAE VAT Filing Glossary

Value Added Tax (VAT)

A consumption tax levied at each stage of the supply chain on goods and services in the UAE. Businesses charge VAT on sales (output tax) and can reclaim VAT paid on purchases (input tax). The standard rate in the UAE is 5%.

Federal Tax Authority (FTA)

The UAE government body responsible for administering and enforcing VAT, Excise Tax, and Corporate Tax. It issues TRNs, oversees tax compliance, conducts audits, and provides guidance to businesses.

Goods

Tangible products or items that can be bought, sold, or traded. Under UAE VAT law, the sale or import of goods may be subject to VAT.

Services

Intangible activities or work provided by a business or individual in exchange for payment. In the UAE, most services supplied are subject to VAT at the standard rate.

Import

Intangible activities or work provided by a business or individual in exchange for payment. In the UAE, most services supplied are subject to VAT at the standard rate.

Person

An individual, company, or legal entity that can carry out business activities. In VAT terms, a person may be required to register and comply with UAE VAT laws if they meet the threshold.

Taxable Person

Any individual, business, or entity that is registered or required to register for VAT in the UAE. A taxable person must charge, collect, and remit VAT according to the law.

Taxpayer

Any individual, business, or entity required to pay VAT in the UAE, whether registered (taxable person) or an end consumer.

Tax Registration

The process by which a taxable person or their legal representative registers with the Federal Tax Authority to comply with VAT requirements.

Tax Registration Number (TRN)

A unique 15-digit number issued by the Federal Tax Authority to each person registered for VAT in the UAE.

Registrant

A taxable person who has been issued a Tax Registration Number (TRN) by the Federal Tax Authority