VAT and corporate tax for UAE SMEs: registration, filing deadlines and who can file for you

The UAE runs a two-layer tax system administered by the Federal Tax Authority through the EmaraTax portal: 5% VAT on taxable supplies and 9% corporate tax on profits above AED 375,000. From 2027 a third layer lands — mandatory e-invoicing — which makes clean digital books a legal requirement rather than good practice.

VAT: registration and filing

VAT registration is mandatory once your taxable supplies and imports exceed AED 375,000 in a rolling twelve months; voluntary registration opens at AED 187,500. Returns are filed quarterly for most SMEs, due 28 days after the period ends, with payment due the same day. Invoices you issue must carry your TRN and meet FTA format rules — every product on this page produces compliant invoices.

Corporate tax: who pays and when

Corporate tax applies at 9% to taxable income above AED 375,000; the first AED 375,000 is taxed at 0%. Free-zone entities can qualify for 0% on qualifying income if they meet substance and activity conditions — but they still register and file an annual return. The return is due nine months after your financial year end. Even a company that owes nothing must file: the obligation is to file, not to owe.

E-invoicing is the third layer

From 2027, B2B invoices must be issued through a Ministry of Finance accredited service provider over the Peppol network — a PDF emailed to a client will no longer count as an invoice. Choosing accounting software that is itself an accredited ASP (Wafeq, Zoho Books, Tally) removes a future integration; otherwise you pair your software with a standalone ASP. See the e-invoicing comparison for the accredited shortlist.

Software or outsourced service?

Software is cheaper — from free tiers to roughly AED 70–250 per month — but someone must keep the books current and file on time. An outsourced service (from about AED 125–500 per month for small businesses) does both, and the fee usually includes VAT returns and the annual CT filing. The deciding question is rarely price: it is whether anyone inside the company will reliably do the work.

• Choose software if you have a competent bookkeeper (even part-time) or volumes are simple enough to reconcile monthly.
• Choose a service if you want filings owned by someone else, you are mid-incorporation, or you want a Russian-speaking accountant (sol.online, Movingo, Sarmat, UpperSetup all serve that segment).

Whichever route you take, keep the evidence: filed returns, TRN certificate and your ASP accreditation record. The FTA can review five years back — clean books are the cheapest insurance a UAE company can buy.