VAT Registration & Filing for
IT Companies in the UAE
UAE VAT registration, digital-services and SaaS VAT, input VAT recovery, and accurate quarterly filing — for software and IT services businesses that sell locally and across borders.
Who we help
VAT in the UAE — what software & IT services businesses need to know
VAT has applied in the UAE since 2018 at a standard rate of 5%. It's collected by registered businesses on behalf of the Federal Tax Authority (FTA). For technology companies, the tricky part isn't the rate — it's working out which of your services are standard-rated, zero-rated or outside scope, especially when you sell digital products and serve clients overseas.
When does your IT business need to register?
Registration is mandatory once your taxable supplies exceed AED 375,000 in a 12-month period. You can register voluntarily from AED 187,500 — which often makes sense for early-stage tech businesses so you can reclaim VAT on your costs. We assess your position and register you correctly with the FTA.
VAT on digital services and SaaS
This is where most tech founders slip up. Whether you charge 5% or zero-rate a sale depends on the place-of-supply rules and where your customer belongs. SaaS and digital services to UAE customers are generally standard-rated, while genuine exports of services to non-residents can be zero-rated if the conditions are met. We map every revenue stream so you charge correctly and stay compliant.
Recovering the VAT you're owed
Registered businesses can recover input VAT on genuine business costs — software, hosting, professional fees and more — provided expenses are incurred for the business and backed by valid tax invoices. Done well, this is a real cash-flow boost; done poorly, it's a common reason for FTA queries. We make sure your records support every claim.
Filing, deadlines and penalties
Most businesses file VAT returns quarterly. Late filing or late payment triggers escalating FTA penalties, so accurate, on-time returns matter. We prepare and submit your returns, and if you've fallen behind, we handle the voluntary disclosure to put things right.
How we work
Assess
We check whether you must register (or should register voluntarily), and map how VAT applies to your specific services — local, digital and cross-border.
Register
We complete your VAT registration with the FTA and set your filing frequency correctly from the start.
Set up
We get your tax invoices, records and accounting system VAT-ready, so every return is accurate and fast to prepare.
File & comply
We prepare and file your returns on time, recover input VAT you're owed, and handle any FTA queries.
What our VAT service includes
VAT FAQs
When does my IT business have to register for VAT?
Registration is mandatory once your taxable supplies and imports exceed AED 375,000 over the past 12 months (or are expected to in the next 30 days). You can register voluntarily once you pass AED 187,500 — often worth it so you can recover input VAT on your costs.
Do I charge VAT on SaaS or digital services sold abroad?
It depends on the place-of-supply rules and where your customer is. Digital services to UAE customers are generally standard-rated at 5%, while exports of services to non-residents can qualify for 0% (zero-rating) if specific conditions are met. We assess each revenue stream so you charge the right rate.
Can I reclaim the VAT I pay on business costs?
Yes — registered businesses can recover input VAT on genuine business expenses (software, hosting, professional fees and more), which directly improves cash flow. Correct tax invoices and records are essential, and that's what we set up for you.
How often do I file VAT returns?
Most businesses file quarterly, though the FTA may assign monthly periods to larger ones. We confirm your period, prepare the return, and file it on time, every time.
What happens if I miss a VAT filing deadline?
Late filing and late payment both trigger FTA penalties that escalate over time. If you're already behind, a properly prepared voluntary disclosure is the right way to fix it — which we handle on your behalf.
Do freelancers and small tech consultants need to register?
Once your taxable income crosses the mandatory threshold, yes — even as a sole freelancer. Below it, voluntary registration can still make sense. We help you decide based on your numbers and clients.
Disclaimer
The information on this page is general guidance only and does not constitute financial, tax, or legal advice. UAE VAT laws and regulations change, and every business situation is different. Please consult a qualified professional — such as Khizr UAE — before making any financial or business decision. Khizr UAE accepts no liability for any loss or damage arising from reliance on the content of this page.
Get your VAT right — and reclaim what you're owed.
Book a free consultation with Sadik Panjwani, ACA, to review your VAT registration, digital-services treatment, and filing.
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