VAT on Digital Services in UAE: Guide for Non-Residents

The Digital Economy is borderless. Tax laws are catching up. If you are a US-based developer selling a SaaS subscription to a UAE company, who pays the VAT?

The Rules (2026)

1. B2B (Business to Business): The Reverse Charge Mechanism applies. The UAE customer accounts for the VAT. You (the seller) do not charge it.
2. B2C (Business to Consumer): You MUST register for VAT if your sales exceed AED 375k. You must collect 5% and remit it to the FTA.

Why It Matters

The FTA is sharing data with global payment processors (Stripe/PayPal). If they see localized revenue, they will ask for their cut.

The Solution

Use TaxMate UAE to determine your "Place of Supply." It asks 3 questions and tells you if you need to register.

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