Tax Law

What Is UAE E-Invoicing? Under the UAE’S electronic invoicing framework, an e-invoice is not simply an invoice sent electronically to a customer. A traditional invoice may be prepared as a PDF and emailed to the customer. An electronic invoice, however, is structured digital invoice data that is exchanged through the approved electronic invoicing framework. [...]

What is FTA Decision No.13 of 2026? FTA Decision No. 13 of 2026 establishes a verification framework for taxable persons before they deduct input tax on supplies received. The Decision applies in relation to Article 54(bis) of the UAE VAT Law and requires taxable persons to verify the validity and integrity of supplies before claiming [...]

Understanding VAT in the UAE: Basics and Scope VAT is a consumption tax generally charged on taxable supplies of goods and services in the UAE. The standard VAT rate is 5%, while certain supplies may qualify for zero-rating or exemption depending on the applicable VAT legislation. For businesses, VAT generally involves three important stages: [...]

What is Small Business Relief? Small Business Relief was introduced as part of the UAE Corporate framework to support businesses with relatively lower revenue. In simple terms, an eligible taxable person whose Revenue does not exceed AED 3 million for the relevant tax period, subject to the applicable conditions, can elect to claim Small [...]

Key Highlights of UAE VAT Directive No. 4 of 2026 Fees Included Within Life Insurance Premium May Be VAT Exempt According to the FTA directive, where a taxable person provides or transfers ownership of a life insurance or life reinsurance contract, services connected with that contract may be treated as part of the VAT-exempt [...]

What Is a Qualifying REIT? A Real Estate Investment Trust (REIT) may apply for exemption from UAE Corporate Tax if it satisfies the conditions prescribed under the Corporate Tax Law and Cabinet Decision No. 34 of 2025. Once approved, the REIT itself is exempt from Corporate Tax. However, qualifying investors may still need to [...]

Do free zone companies need bookkeeping? Yes. Every UAE free zone company must maintain proper accounting records — including small, newly incorporated and dormant ones. Those records exist to satisfy four overlapping demands: corporate tax, audit, licence renewal and banking. A company that keeps no books is not "saving money"; it is deferring a clean-up [...]

The two thresholds ThresholdAmount (rolling 12 months)Effect MandatoryAED 375,000You must register and charge 5% VAT VoluntaryAED 187,500You may choose to register Both are measured over a rolling 12-month period, not a calendar year. Once your taxable supplies and imports exceed AED 375,000, you have 30 days to apply — miss it and the FTA can [...]

UAE Corporate Tax and Transfer Pricing: Why Related Party Transactions Matter The introduction of UAE Corporate Tax has brought new compliance responsibilities for businesses operating in the UAE. One of the key focus areas is transfer pricing, particularly ensuring that transactions with Related Parties and Connected Persons are conducted in accordance with the arm's length [...]

FTA Decision No. 6 of 2026: Scope and Effective Date Decision No. 6 of 2026 was formally issued on 2 June 2026 and applies to any Qualifying Free Zone Person carrying out the Qualifying Activity of “distribution of goods or materials in or from a Designated Zone”, as defined in paragraph (l) of Clause [...]