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UAE Corporate Tax

Federal Tax Authority Collects AED 46 Billion in VAT and Excise Tax

By Noura Lawyers · UAE Law Update · Federal · 2 min read

The Federal Tax Authority has released its 2025 annual report, revealing a significant increase in tax revenues. The report highlights a 20% rise in tax registration transactions, totaling 1.7 million. This growth indicates a substantial expansion of the tax base in the UAE. The authority's efforts to enhance tax compliance and registration have yielded positive results, with a notable increase in VAT and excise tax revenues. This development underscores the importance of tax compliance for businesses operating in the UAE.

Update note

Who should read this

Businesses with UAE operations should immediately review their tax compliance and registration status.

Directly affected

UAE businessestaxpayers

Key facts

  • AED 46 billion collected in VAT and excise tax revenues
  • 1.7 million tax registration transactions, up 20% from previous year
  • 20% increase in tax registration transactions
  • Significant expansion of the tax base in the UAE
  • Enhanced tax compliance and registration efforts by the Federal Tax Authority

What this means for you

Businesses in the UAE should review their tax compliance and registration status to ensure they are meeting the required standards, given the authority's enhanced efforts to boost tax revenues.

Directly affected: UAE businesses, taxpayers

Action items

  1. Review tax compliance and registration status
  2. Ensure accurate and timely tax returns and payments
  3. Consider seeking professional advice on tax matters
  4. Monitor updates from the Federal Tax Authority

Litigation impact

This development may impact pending or future tax-related disputes, as the authority's increased focus on tax compliance could lead to more rigorous enforcement measures. Businesses should be prepared to respond to potential tax audits or investigations.

Source

Federal Tax Authority — News
https://tax.gov.ae/en/media.centre/news/federal.tax.authority.issues.2025.annual.report.aed.46.billion.in.vat.and.excise.tax.revenues.collected.tax.registration.transactions.increase.to.1.7.million.up.20.aspx
Original-source date: — · Captured: 2026-07-01T08:19Z

Verified against Federal Tax Authority — News ·
Show full English translation / verbatim source text
The Federal Tax Authority has issued its 2025 annual report, which reveals that AED 46 billion was collected in VAT and excise tax revenues. The report also shows that tax registration transactions increased to 1.7 million, representing a 20% rise from the previous year.

This update is generated from a public regulator publication and reviewed under the firm's automated editorial quality gate. General information only — it does not constitute legal advice. For advice on a specific matter, please contact us. Last updated: 1 July 2026.

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Frequently asked questions

What does “Federal Tax Authority Collects AED 46 Billion in VAT and Excise Tax” change?

The Federal Tax Authority has released its 2025 annual report, revealing a significant increase in tax revenues. The report highlights a 20% rise in tax registration transactions, totaling 1.7 million. This growth indicates a substantial expansion of the tax base in the UAE. The authority's efforts to enhance tax compliance and registration have yielded positive results, with a notable increase in VAT and excise tax revenues. This development underscores the importance of tax compliance for businesses operating in the UAE.

Who is affected by this update?

UAE businesses, taxpayers

What should affected businesses do now?

Review tax compliance and registration status. Ensure accurate and timely tax returns and payments. Consider seeking professional advice on tax matters. Monitor updates from the Federal Tax Authority.

How can Noura Lawyers help?

Our partners advise on exactly this kind of regulatory change — brief us in three minutes via the contact page for a same business-day partner response.