VAT applies to most supplies and importation of goods and services in the UAE at 5%, unless specifically exempted or subject to zero rate of VAT.

A non-UAE resident supplying goods to UAE customers through Amazon’s FBA channel is required to register for VAT, irrespective of the volume of sales or turnover since VAT registration will be required from the first date of supply in the UAE.

If the seller is doing pure Self-Ship and Amazon Easy Ship business where goods are sold from outside UAE to customers in UAE, then they may not be required to register for VAT.

However, the UAE resident individual or business supplying taxable goods to UAE customers is required to register for VAT if the value of taxable supplies exceeds AED 375,000 in the preceding 12 months or expected to exceed in the next 30 days.

Registering for VAT will lead to a number of associated compliance requirements. For example, filling VAT returns, issuing Tax Invoices to your customers.

For more information, refer to UAE VAT frequently asked questions