How to Pay VAT in UAE? | Fast & Secure Payment Tips

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Have you been wondering how to pay VAT in UAE quickly and securely? Whether you’re a startup or a growing enterprise, understanding the VAT payment process is vital for legal compliance and smooth business operations in the Emirates. The UAE implemented Value Added Tax (VAT) on January 1, 2018, at a standard rate of 5 percent to support its transition towards a diversified, non-oil-dependent economy.

Every VAT-registered business must pay its tax obligations through the Federal Tax Authority (FTA) using online systems like EmaraTax. However, due to multiple available payment methods and varying rules for different business types, the process can often seem complex.

This guide simplifies it all. From VAT registration to return filing, payment methods, and common mistakes to avoid, you’ll learn everything you need to manage your VAT responsibilities efficiently.

What Is VAT in the UAE?

Value Added Tax (VAT) is a consumption tax applied to the sale of goods and services at each stage of the supply chain, where value is added. The UAE introduced VAT at a rate of 5% on January 1, 2018, marking a major fiscal shift in the region. The goal was to diversify revenue streams and reduce reliance on oil and hydrocarbon sectors.

VAT allows the government to invest in public services such as infrastructure, healthcare, and education. Businesses collect VAT on behalf of the government, while end consumers ultimately bear the tax.

Key facts about UAE VAT:

VAT is applied to most goods and services, with only a few exemptions
Tourists also pay VAT during their purchases in the UAE
Businesses can reclaim VAT they paid on their purchases
VAT-registered companies must report both VAT collected (output tax) and paid (input tax)

This system not only helps raise non-oil revenue but also aligns the UAE with international tax standards, supporting economic development across the Gulf.

Who Needs to Pay VAT in the UAE?

Not all entities are required to pay VAT in the UAE. The Federal Tax Authority has set clear thresholds to determine which businesses must register and pay VAT.

Businesses must register and pay VAT if:

Their annual taxable supplies and imports exceed AED 375,000
A non-UAE based business makes taxable supplies in the UAE, and no other party is liable to pay tax on their behalf
Free zone businesses located in designated zones conduct taxable business

Voluntary VAT registration is available for:

Businesses whose supplies and imports exceed AED 187,500 annually
Startups wishing to build tax credibility and reclaim input VAT

It is the responsibility of the business owner to monitor turnover and register as soon as they meet the threshold. Failure to register on time can result in administrative penalties.

Even if a business qualifies for voluntary registration, doing so can provide financial benefits, such as input VAT recovery and a more professional business image.

How to Register for VAT in the UAE?

The VAT registration process in the UAE is fully online and managed through the FTA’s digital platform called EmaraTax.

Here’s how to complete the registration:

Steps to register:

Visit the FTA portal and create an EmaraTax account
Submit your business documents, such as trade license, Emirates ID, passport copy of the owner, and bank account details
Provide turnover information and business activity details
Await review and approval by the FTA

Once approved, you’ll receive your Tax Registration Number (TRN), which is required for all VAT-related transactions and invoices.

Important things to note:

You must keep all VAT-related business documents for at least 5 years
Any changes in your business must be updated through EmaraTax
Registration is mandatory if you cross the required turnover threshold

Completing VAT registration is the first legal step toward tax compliance in the UAE.

How to File a VAT Return in the UAE?

VAT-registered businesses are required to file their VAT returns regularly via the EmaraTax platform. Filing a VAT return involves reporting all taxable sales and purchases for the tax period, along with the calculation of VAT owed or reclaimable.

The VAT return includes:

Output tax: VAT collected on sales
Input tax: VAT paid on purchases
Net VAT due: Difference between output and input VAT

Steps to file VAT return:

Log into your EmaraTax account
Navigate to “VAT Return Filing”
Enter all taxable transactions for the reporting period
Submit the return form
Pay the amount due via your chosen payment method

Before filing, ensure that your accounts are updated, invoices are correct, and all supporting documents are available.

VAT Filing Deadlines Based on Turnover

Turnover Type	Tax Period	Filing Deadline
Less than AED 150M	Quarterly	28 days after end of each quarter
More than AED 150M	Monthly	28 days after end of each month

Failing to file on time can result in heavy fines and reputational damage. Ensure timely submissions and accurate reporting to stay compliant.

How to Pay VAT in UAE Through EmaraTax Portal?

Paying VAT through EmaraTax is simple and efficient. The platform supports all stages of tax management, from return filing to payment and refund requests.

Steps to pay VAT on EmaraTax:

Log in to your EmaraTax account at eservices.tax.gov.ae
Go to the “My Payments” section
Review your outstanding VAT liabilities
Choose your preferred payment method from the available options
Proceed with the payment and confirm via OTP or bank authentication

Important notes:

Ensure your TRN is accurate to avoid misallocation
Always pay before the due date to avoid late fees
Keep digital proof of your payment for records

The EmaraTax system is integrated with UAE PASS and the UAE Central Bank to ensure secure and streamlined processing for every business.

What Are the VAT Payment Methods in the UAE?

To make VAT payments convenient, the UAE offers five secure methods through the EmaraTax platform. You can choose the one that best suits your business needs.

1. Credit Card via FAB Magnati Gateway

You can pay instantly using Visa or Mastercard. After logging in and confirming the amount, select the credit card option. Enter your details, verify via OTP, and complete the transaction.

Processing fee 0.68% of payment amount
Instant confirmation
Transaction history available under “My Payments”

2. eDebit Payment

This allows direct payment from UAE-based bank accounts using online banking.

Supported by major banks like Emirates NBD, FAB, Citibank
Fixed fee AED 10
Confirmation time: within 30 minutes

3. e-Dirham Card Payment

This government-issued payment card is ideal for paying public dues.

Fee AED 3 per transaction
Low-cost option
Instant processing via EmaraTax

4. Local Bank Transfer via GIBAN

Each business is assigned a unique GIBAN (Generated IBAN). Use it for local bank transfers.

No EmaraTax login required
Payment reflects within 24 hours
Ensure correct GIBAN to avoid errors

5. International Bank Transfer via GIBAN

For businesses with foreign accounts, VAT can be paid via SWIFT transfer to the UAE-assigned GIBAN.

Takes 3 to 5 working days
Must be initiated at least 1 week before the deadline
International bank charges may apply

Each payment method offers flexibility, speed, and traceability based on your preference and location.

How to Choose the Right VAT Payment Method?

Choosing the best method depends on your business size, urgency, and banking options. Here’s how to decide.

Factors to consider:

Processing time: Credit cards and e-Dirham are fastest
Transaction fees: e-Dirham and eDebit are cheaper
Banking options: Local or international accounts
Record-keeping: EmaraTax history is available for all options

Comparison of VAT Payment Methods

Method	Processing Time	Fees	Best For
Credit Card	Instant	0.68%	Urgent payments
eDebit	30 mins	AED 10	UAE account holders
e-Dirham	Instant	AED 3	Low-cost payments
Local Transfer (GIBAN)	24 hrs	Bank charges	Local banks
International Transfer	3–5 days	Varies	Overseas businesses

Choose the one that balances cost, speed, and convenience for your setup.

What Are the Common Mistakes to Avoid When Paying VAT?

Mistakes during VAT payment can lead to delays, penalties, or even audit issues. Here are the most common errors and how to avoid them.

Frequent VAT payment mistakes:

Missing the deadline: Always pay at least 1 day before due
Using the wrong GIBAN: Double-check your unique number
Ignoring penalties: Old fines may accumulate if unpaid
Incorrect allocation: Set payment preferences correctly in EmaraTax
Failure to verify: Always confirm the status in “My Payments”

Tips to prevent these issues:

Set reminders for filing and payment
Cross-check all numbers before submitting
Keep transaction confirmations and digital receipts

By following these practices, you ensure timely, accurate VAT payments and maintain good standing with the FTA.

What Are the VAT Due Dates and Penalties in the UAE?

VAT due dates depend on your tax period. The FTA enforces strict deadlines with monetary penalties for non-compliance.

Due dates:

Quarterly: 28 days after the end of each quarter
Monthly: 28 days after each month

For example, VAT for Q4 (Oct to Dec) must be paid by January 28th. Missing this can result in:

Late filing fine: AED 1,000 (first time)
Late payment fine: 2% immediately, then 4% weekly
Interest: Capped monthly

Penalty avoidance tips:

Use EmaraTax calendar reminders
Pay a few days early
Reconcile your VAT regularly

Timely VAT payments and filings help avoid fines and demonstrate tax reliability to stakeholders and regulators.

Can Tourists Claim VAT Refunds in the UAE?

Yes, tourists in the UAE are eligible for VAT refunds on eligible purchases made during their stay. The refund process is seamless and fully digital.

Steps for tourists:

Spend a minimum of AED 250 at stores participating in the ‘Tax Refund for Tourists’ scheme
Ask the shop to generate a tax-free tag using the Planet system
Validate the purchase at the airport within 90 days
Submit invoice, passport copy, and credit card

Refund details:

Refund available in cash or card at departure terminals
85% of VAT is refunded after deducting AED 4.80 per tag
Refunds are not available for consumed or exported goods

Tourists must be at least 18 years old and ensure that goods are in their possession when exiting the UAE. This scheme enhances shopping experiences and supports the tourism sector.

Conclusion

Navigating VAT in the UAE doesn’t have to be overwhelming. By understanding who needs to pay, how to register, how to file returns, and the various payment options available, you can stay fully compliant with FTA regulations.

Whether you’re a local startup, an international company, or a tourist looking to claim refunds, the UAE has developed a user-friendly digital infrastructure through EmaraTax to support seamless VAT interactions.

Avoiding mistakes, paying on time, and using the right tools are key to successful VAT management. Now that you know how to pay VAT in UAE securely, you can move forward with full confidence in meeting your tax responsibilities.