VAT vs. Excise Tax vs. Corporate Tax: How the Three UAE Taxes Differ

A side-by-side comparison of what triggers registration, the rates, and filing frequency for each UAE federal tax.

The UAE's three federal taxes — VAT, Excise Tax, and Corporate Tax — are administered by the same authority (the FTA) through the same portal (EmaraTax) and the same digital identity (UAE Pass), but differ sharply in what triggers registration, how they're rated, and how often they're filed.

What triggers registration

VAT registration is threshold-based: mandatory at AED 375,000 in taxable supplies/imports, voluntary from AED 187,500. Excise Tax has no threshold at all — importing, producing, or stockpiling excise goods triggers it immediately. Corporate Tax registration is universal — essentially every business conducting UAE activity must register, regardless of profit.

How each is rated

VAT is a flat 5% on most supplies (with zero-rated and exempt categories). Excise Tax rates depend on the goods category: 100% for tobacco, e-cigarette liquids, and energy drinks; sweetened drinks (since 2026) per litre by sugar content — AED 1.09, AED 0.79 or AED 0. Corporate Tax is banded: 0% up to AED 375,000 of taxable income, 9% above it — with a separate 0% regime for Qualifying Free Zone Persons and an election-based exemption via Small Business Relief for revenue under AED 3,000,000.

Filing frequency and deadlines

VAT returns are monthly or quarterly (assigned per registrant), due 28 days after the period ends. Excise Tax returns are monthly, due by the 15th of the following month. Corporate Tax returns are annual, due 9 months after the financial year ends — reflecting that a full-year profit calculation takes far longer to finalize than a VAT or Excise position.

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