Collect tax in United Arab Emirates

In United Arab Emirates, Stripe Tax supports calculation and collection of VAT.

When to register for tax collection

See Thresholds to get insights about your potential tax registration obligations in United Arab Emirates. Stripe also notifies you with email and Dashboard alerts when you need to register to collect tax. Learn more about how the monitoring tool works.

If you’re located outside the UAE, you must register in the UAE as soon as you perform taxable sales in the UAE and where no other person is obligated to pay the due VAT on these supplies in the UAE (no reverse charge applies). The registration deadline is within 30 days of performing the first taxable sale.

For example, if you’re based in the US and sell digital services to UAE consumers, you must register within 30 days of performing the first sale. However, if you only sell to UAE businesses, you don’t need to register because such sales are subject to reverse charge.

• Threshold: 1 transaction
• Included transactions: Any taxable transactions that reverse charge doesn’t apply to.

Register to collect tax

Find more information on how to register for VAT in United Arab Emirates on the government website.

After you’ve registered to collect tax in United Arab Emirates, go to Registrations to add your registrations to Stripe in the Dashboard. This turns on tax calculation and collection in Stripe for your transactions in United Arab Emirates.

Learn more about how to add your registration in the Dashboard.

How we calculate taxes

When both your business and your customer are in the UAE, Stripe calculates VAT unless the sale is exempt or zero-rated.

If you’re a remote seller and sell services to customers in the UAE, VAT is typically collected on sales to individuals. No tax is charged on sales to business customers who provide their VAT number.

Stripe treats sales of goods shipped into the UAE from abroad as exports and doesn’t calculate tax unless you opt to calculate tax on cross-border goods sales into the UAE through the tax registration settings. Generally, businesses need to collect tax on these sales unless the customer is responsible under the reverse charge mechanism, which usually applies if the customer is registered and resident in the UAE.

Cross-border goods sales into the UAE might also be subject to import taxes and customs duties, which Stripe doesn’t calculate.

Report and file your taxes

Stripe provides reports of your completed tax transactions. Go to Registrations to access these reports. Learn more about the different types of reports.

You’re responsible for filing and remitting your taxes to United Arab Emirates. Stripe doesn’t file taxes on your behalf. However, we do have trusted partners who can help manage your filing and remittance.