VAT and Corporate Tax are two separate taxes with separate registrations and returns. Here is how they differ.

	VAT	Corporate Tax
What is taxed	Supplies of goods and services	Business profit (taxable income)
Standard rate	5%	0% up to AED 375,000, then 9%
Who bears it	The end customer, collected by the business	The business itself
Registration trigger	Taxable supplies above AED 375,000 (voluntary from AED 187,500)	Companies: all; individuals: turnover above AED 1 million
Return frequency	Usually quarterly or monthly	Once a year
Filing deadline	28 days after each tax period	9 months after the financial year
Record keeping	At least 5 years	7 years

Why it matters

A business can be registered for one tax and not the other. For example, a consultant with AED 300,000 of sales may not need VAT registration but, as a company, still needs Corporate Tax registration.

Our advice

Check both taxes separately when you start a business, when your revenue grows and at the end of every financial year.

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General information only, not advice for your specific situation.