UAE VAT Return Calculator

Zero-rated supplies are technically VAT-able but at 0%. You don't charge customers VAT, but you CAN still recover input VAT on related purchases. Examples: exports, qualifying healthcare and education. Exempt supplies are completely outside VAT — no VAT charged AND no input VAT recoverable. Examples: residential rent, financial services, bare land sales.

When a UAE business imports services from outside the UAE (foreign consultants, SaaS subscriptions, Google Ads, Meta Ads), the foreign supplier does not charge UAE VAT. The UAE recipient instead self-accounts VAT on the value, claims the same amount back as input VAT, and the entry nets to zero. The FTA requires reporting on both sides of the return — Box 3 (output) and Box 9 (input). Omitting the entry is a common audit finding.

You can only recover input VAT on purchases that relate to your taxable sales. If 80% of your sales are taxable and 20% exempt, you can typically only recover 80% of the VAT on shared overhead costs (rent, electricity, professional fees). The Customize mode's 'Non-recoverable %' field handles this.

You get a refund. Two options: (1) request a cash refund from the FTA (usually paid within 20 working days after review), or (2) carry the credit forward to offset against future periods' VAT payable. Most small businesses just carry it forward. Cash refunds are worth requesting only for amounts above AED 5,000.

If a customer doesn't pay an invoice older than 6 months and you've written it off in your books, you can reclaim the output VAT you already paid to the FTA on that invoice. You enter the VAT amount (not the invoice total) in your next return as a deduction from output VAT. Customize mode subtracts this from your net payable so you see the cash-flow benefit immediately.

Late filing first offence: AED 1,000. Second offence within 24 months: AED 2,000. Late payment: 14% per year on overdue VAT balances (introduced April 2026). Inaccurate return / under-reporting: up to 300% of the shortfall for deliberate evasion. These compound quickly — set a calendar reminder for 28 days after each period end. Customize mode estimates first-offence penalty + interest if you enter days late.

Mandatory registration if your taxable turnover exceeds AED 375,000 in the past 12 months OR is expected to exceed it in the next 30 days. Voluntary registration is available above AED 187,500. Below those thresholds, you don't charge VAT, can't recover input VAT, and don't file returns.

No — these are blocked input tax items under the regulations. Even if you have a VAT invoice, you can't recover VAT on: company cars (except dedicated commercial vehicles like delivery vans), entertainment expenses, employee meals (unless meal allowance is part of contract). Plan accordingly.

Quick mode handles a typical small UAE business: standard-rated sales + standard-rated purchases → net VAT. Customize mode adds every special item from the FTA return form: zero-rated sales for reporting (exports, healthcare, education), exempt sales (residential rent), reverse-charge service imports, partial-exemption recovery cap, bad-debt relief, annual projection at your filing frequency, and a late-filing penalty estimate.