Is there a free VAT/GST threshold for foreign digital sellers?

No — register from the first in-scope supply. Botchannels

No. This page summarises official VAT/GST rules for foreign digital sellers. It is not tax or legal advice

Compendium · Middle-East · United Arab Emirates

United Arab Emirates: VAT on digital services

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Not supported by the free-threshold API · Local term: VAT

Last verified: 2026-10-29

Non-resident businesses that make taxable supplies in the UAE must register for VAT when no other person is obligated to account for the due tax; the AED 375,000 mandatory threshold is not applicable to foreign businesses (FTA Mandatory Registration, updated May 2024). Standard rate 5%. Electronic services are addressed in the FTA E-Commerce VAT Guide

Not supported by the free-threshold API: why

Nil-threshold regime

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Threshold and rates (VAT)

Free threshold?: No — Nil-threshold regime
Amount / measure: AED 0
No registration threshold for non-resident digital / electronic-service B2C suppliers — register from first in-scope supply
Window: No threshold (from the first sale)
Standard rate: 5.0%
Standard UAE VAT 5% (FTA)
Who must register: Non-resident suppliers of electronic services to UAE customers where reverse charge does not apply (typically B2C / non-registered customers)
Evidence of location: FTA e-commerce guidance locates electronic services by customer residence / location tests under the VAT legislation. Keep billing address, IP and UAE payment indicators. A two-evidence EU-style checklist is not the FTA framing as of 2026-10-29
Invoicing: Issue tax invoices meeting FTA content rules once registered; charge 5% VAT on taxable electronic services
Filing: VAT returns on the tax period assigned at registration (usually quarterly for many registrants); pay in AED via FTA eServices
Effective: UAE VAT Decree-Law No. 8 of 2017 and FTA e-commerce guidance
Authority: Federal Tax Authority (FTA)

What Botchannels returns

Ruleset version: 2026-10-22.v1
Decision summary: Botchannels does not open free-threshold sales here. Register (or appoint a representative) before selling.
Product class: Digital service
Support status: Not supported by the free-threshold API — Nil-threshold regime

How to register

Self-register online?: Yes — via EmaraTax / FTA eServices. Non-residents creating a taxable-person profile can submit VAT registration online. A UAE tax agent may be appointed (often practical for eServices access)
Resident representative / fiscal agent: Not always mandatory in law, but FTA practice often expects a UAE tax agent / authorised signatory for non-residents. Confirm the current EmaraTax checklist
Regime: FTA VAT registration for non-resident suppliers of electronic services (no AED 375,000 threshold for non-residents when they must account for UAE VAT)

Steps (in order)

Confirm you make taxable UAE supplies of electronic services and that no other person is obliged to account for the VAT (typically B2C; B2B to registered customers may reverse-charge)
Create/activate an EmaraTax account, create a taxable-person profile, and open VAT → Register — https://tax.gov.ae/en/services/vat.registration.aspx
Upload incorporation/MOA, licensing or commercial registration evidence, owner/signatory ID, power of attorney, and evidence of UAE supplies/contracts as requested
Submit; after approval charge 5% VAT and file/pay for your assigned tax period in AED

Documents

Incorporation / constitutional documents — Certificate of incorporation, memorandum/articles as FTA requests
Commercial registration or licensing evidence — Home-country trade licence / registration extract
Owner / authorised-signatory passport (and Emirates ID if UAE-resident) — As listed in FTA VAT registration user manual
Power of attorney / tax-agent appointment — If an agent or attorney submits on your behalf
Evidence of UAE taxable supplies — Contracts, invoices, or declarations requested by FTA

Official processing time: FTA materials cite about 20 business days for VAT registration processing (confirm current EmaraTax SLA)
Official fees: No FTA registration fee summarised on the English VAT registration service page reviewed; agent fees are commercial
Portal: https://tax.gov.ae/en/services/vat.registration.aspx
Local bank account: Pay VAT in AED via FTA payment methods
Filing frequency: Per assigned tax period (commonly quarterly)
Payment currency: AED
Input VAT recovery: Limited for non-resident electronic-services suppliers — confirm with FTA / agent
Portal language: English and Arabic EmaraTax
Penalties: Late registration / filing / payment penalties under UAE VAT law

Firms offering this service

Non-exhaustive. Not an endorsement. Links checked live on 2026-10-29; confirm current offerings, licences, and fees directly with each firm before engaging

KPMG Lower Gulf (UAE) — Member firm
EY UAE — Member firm
Deloitte Middle East — Regional member firm

Official sources

FTA — Mandatory Registration (foreign threshold not applicable)
FTA — VAT registration service
FTA — E-Commerce VAT Guide (VATGEC1)

Last verified: 2026-10-29.

FAQ

Is there a free VAT/GST threshold for foreign digital sellers?: No — register from the first in-scope supply. Botchannels
What rate applies?: 5% standard UAE VAT
Is this tax advice?: No. This page summarises official VAT/GST rules for foreign digital sellers. It is not tax or legal advice