Short answer: selling through Amazon.ae and Noon does not move your VAT obligation to the marketplace — for most UAE sellers, you remain the supplier of record and account for the 5% VAT on every sale yourself, with the marketplace charging its commission VAT separately. What changes is documentation: each platform's reports tell you the net proceeds, commission and VAT split, and your job is to reconcile those against your bank deposits and file the totals in your VAT return.
TL;DR
- Amazon.ae and Noon are NOT deemed suppliers for UAE VAT — the seller usually remains liable for the 5% on goods sold.
- The marketplace's commission and fulfilment fees carry their own 5% VAT; recover it as input tax if you are registered.
- VAT registration is mandatory once taxable supplies pass AED 375,000 in 12 months — marketplace sales count in full.
- Exports of goods outside the GCC can be 0%, but only with official AND commercial proof of export.
- Reconcile Amazon/Noon settlement reports to bank receipts monthly; file your VAT return by the 28th of the month after each period.
How VAT works on Amazon and Noon sales in the UAE
The starting point is Federal Decree-Law No. 8 of 2017 on VAT and its Executive Regulation (Cabinet Decision No. 52 of 2017). Unlike the EU and UK, the UAE has no general deemed-supplier rule for marketplaces: when a customer buys your product on Amazon.ae or Noon, the supply is made by you, the seller, to the customer — the marketplace facilitates it and charges you commission and fulfilment fees. That means:
- You charge 5% VAT on the item price the customer pays, if you are VAT-registered.
- Amazon/Noon charge 5% VAT on their fees to you — commission, fulfilment (FBA/FBP), storage and advertising.
- You recover the VAT on those fees as input tax, against the VAT you collected on sales.
The FTA's E-Commerce VAT Guide (VATGEC1) confirms this treatment and stresses one thing sellers get wrong constantly: to zero-rate an export of goods, you need both official evidence (customs declaration) and commercial evidence (proof of shipment and delivery).
Who must register for VAT
Registration is not optional once your taxable supplies cross the mandatory threshold of AED 375,000 in any rolling 12 months, with voluntary registration available from AED 187,500 (FTA VAT registration guidance). Marketplace sales count at their full selling price including VAT — the commission Amazon keeps is not deducted first.
UAE-registered seller, sales to UAE customers
- VAT treatment: 5% VAT on the item price; you file and pay it
UAE-registered seller, goods exported outside the GCC
- VAT treatment: 0% only with customs declaration + proof of export
Sales to GCC (KSA, etc.) via marketplace
- VAT treatment: Depends on origin/destination rules; commonly treated as export with evidence
Below AED 375,000 but above AED 187,500
- VAT treatment: Voluntary registration available — often worthwhile for input VAT recovery on fees
What the marketplace reports actually tell you
Amazon's VAT Transaction Report and Noon's invoice/settlement statements give you the building blocks:
- Gross item price and VAT collected per order — your output tax.
- Commission, fulfilment and storage fees with their VAT — your input tax.
- Net settlement — what actually hits your bank account.
Your monthly routine: download the settlement report, tick the VAT column against your sales, confirm the net figure matches the bank deposit, and book all three legs. Sellers who book only the net deposit understate revenue and output VAT — an FTA audit flag — and sellers who ignore fee VAT overpay.
Filing calendar and records
VAT return and payment
- Deadline: By the 28th day after the end of the tax period
- Source: Cabinet Decision No. 43 of 2023; FTA VAT guide
VAT registration
- Deadline: Within the timeline set by the FTA once AED 375,000 threshold crossed
- Source: FTA VAT registration rules
Records retention
- Deadline: 5 years minimum for VAT records and supporting documents
- Source: Art. 78, Federal Decree-Law No. 8 of 2017
Export evidence
- Deadline: Retain customs declaration + commercial shipment proof for every 0% sale
- Source: FTA E-Commerce VAT Guide (VATGEC1)
Common Amazon/Noon VAT mistakes
- Booking only net settlements. Revenue and output VAT must be booked gross; the settlement is just a cash event.
- Zero-rating exports without full evidence. A customs declaration alone is not enough — commercial evidence of export is mandatory.
- Missing the fee-VAT input recovery. Thousands of dirhams of recoverable input tax are left unclaimed every year.
- Registering late. The penalty for late registration is AED 20,000 under Cabinet Decision No. 40 of 2017.
- Ignoring marketplace-specific fees (advertising, returns processing) in the reconciliation, which distorts both P&L and VAT return.
FAQ
Does Amazon or Noon handle my UAE VAT?
No. Unlike the EU or UK, UAE law has no deemed-supplier rule for marketplaces — you, the seller, remain liable to charge and account for the 5% VAT on your sales. The marketplace charges VAT on its own commission and fees.
When must a marketplace seller register for VAT?
When taxable supplies, including the full value of marketplace sales, exceed AED 375,000 in a rolling 12 months. Voluntary registration is available from AED 187,500.
Can I zero-rate sales shipped outside the UAE?
Yes, for genuine exports of goods, but only with both official evidence (customs declaration) and commercial evidence (proof of export shipment). Without both, the sale is standard-rated at 5%.
Can I recover the VAT on Amazon and Noon fees?
Yes. Commission, fulfilment, storage and advertising fees from the marketplaces carry 5% VAT, which you recover as input tax if you are VAT-registered.
When is my VAT return due?
By the 28th day after the end of your tax period, together with payment (Cabinet Decision No. 43 of 2023).
What penalties apply if I get this wrong?
Late registration is AED 20,000 under Cabinet Decision No. 40 of 2017; late payment and incorrect return penalties apply separately under the Tax Procedures Law.
One last thing
Set a fixed monthly routine: pull the Amazon and Noon settlement reports on the 1st, reconcile to the bank, book gross revenue with VAT, and file by the 28th. If you are already past AED 375,000 of marketplace sales without a TRN, register now — the penalty is fixed and backdating does not make it disappear.
Related guides
- VAT registration in the UAE
- Corporate tax for technology and software companies in the UAE
- Corporate Tax Filing Service
- VAT for the technology and software sector in the UAE
Official sources: Federal Decree-Law No. 8 of 2017 on VAT — https://uaelegislation.gov.ae/en/legislations/1227 · FTA E-Commerce VAT Guide (VATGEC1) — https://tax.gov.ae/DownloadOpenTextFile?fileUrl=en%2FVAT_VAT_Guides%2FE_Commerce%2FE_Commerce_VAT+Guide_EN_09_08_2020_EN.pdf · FTA VAT portal — https://tax.gov.ae/en/vat.aspx
