Invoicing as a freelancer in the United Arab Emirates

Work under a permit or a licence

To invoice clients you need a legal basis: a freelance permit or a trade licence issued by a free zone authority or by the economic department of an emirate. Your invoices show the name and number that appear on that permit or licence.

VAT: when to register

The standard VAT rate is 5 %. Registration depends on your taxable supplies over the last twelve months (or expected in the next thirty days):

• Above AED 375,000: registration is mandatory.
• From AED 187,500: voluntary registration is possible.
• Below the threshold, or before registration: issue a normal invoice, without VAT and without the words “Tax Invoice”.

What a tax invoice shows

Once registered, each invoice is a tax invoice and shows:

• The words “Tax Invoice” and a unique sequential number.
• Your name, address and Tax Registration Number (TRN, 15 digits).
• The client’s name and address, and their TRN when they are registered.
• The date of issue and the date of supply if different.
• A description of the services, the amount before tax, the VAT rate and the VAT amount.
• The VAT amount in dirhams (AED), even when you invoice in US dollars or another currency.

Clients abroad and corporate tax

Services provided to clients outside the UAE can, under conditions, be zero-rated: keep the contract and proof of the client’s location.

Corporate tax (9 % above AED 375,000 of taxable income) also concerns individuals whose business turnover exceeds AED 1 million in a calendar year. Check your situation with a tax adviser.

Set a rate that covers everything

Your rate must cover the permit or licence, the visa, health insurance, equipment, unpaid time (prospecting, admin, holidays) and your target income. The freelance hourly rate calculator turns these costs into an hourly and a daily rate.

This guide is general information: rules change and depend on your activity and emirate. Check with the Federal Tax Authority or a tax adviser for your case.