By LedgerMapz Tax & Accounting Engineering Team • Reviewed against official CBIC / FTA / IRS rules • Back to Knowledge Hub
Table of Contents: 1. UAE 5% VAT Framework & 15-Digit TRN Rules • 2. Line-by-Line Guide to FTA VAT Return Form 201 (Boxes 1a–14) • 3. Reverse Charge Mechanism on Imported Services • 4. UAE 9% Corporate Tax (Federal Decree-Law No. 47 of 2022) & AED 375,000 Threshold • 5. WPS Payroll & Article 51 Gratuity Accruals.
1. UAE 5% Value Added Tax & Bilingual Tax Invoices
Under UAE Federal Decree-Law No. 8 of 2017, businesses exceeding AED 375,000 in taxable supplies must register for VAT and display a 15-digit Tax Registration Number (TRN) starting with 100. Standard-rated supplies attract 5% VAT, while direct exports of goods and qualifying international services are Zero-Rated (0%).
2. FTA Form 201 Boxes 1a–1g & Reverse Charge
Standard-rated supplies must be reported in Boxes 1a through 1g according to the Emirate in which the fixed establishment most closely connected to the supply is located (Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, Fujairah). Imported services subject to the Reverse Charge Mechanism are declared in Box 3 and recovered (if eligible) in Box 10.
3. UAE 9% Federal Corporate Tax Calculation
Effective for financial years starting on or after 1 June 2023, UAE Corporate Tax applies at 0% on taxable net profit up to AED 375,000 and 9% on taxable net profit exceeding AED 375,000. For example, a Dubai Mainland LLC with AED 1,000,000 in adjusted net profit pays 0% on the first AED 375,000 and 9% on the remaining AED 625,000 = AED 56,250. Use the LedgerMapz UAE Tax Module to compute both Form 201 and Corporate Tax provisions in real time.
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