VAT and tax

VAT for salons in the UAE: registration and tax invoices

By the SalonKit team · 4 November 2026 · 7 min read

Salon and barber services in the UAE are standard-rated for VAT at 5%. Here is what that means for a salon in practice: when you must register, how to work out the VAT inside your prices, and what has to be on the bill you give the customer.

Do you have to register for VAT?

You must register when your taxable supplies and imports in the last 12 months are over AED 375,000, or you expect them to go over AED 375,000 in the next 30 days.
You may register voluntarily when your taxable supplies, imports or taxable expenses are over AED 187,500.
Below that, you cannot register, and you must not charge VAT or show a TRN on your bills.

For a busy salon, AED 375,000 a year is a little over AED 1,000 a day, so many established salons and barber shops are over the line. Keep an eye on your rolling 12-month total, not just the calendar year.

5% VAT inside your prices

Prices shown to customers in the UAE should include VAT. So when your price list says a haircut is AED 60, the VAT is already inside that AED 60. To find it, multiply by 5 and divide by 105.

Price shown (incl. VAT)	VAT inside (× 5 ÷ 105)	Price without VAT
AED 60.00	AED 2.86	AED 57.14
AED 105.00	AED 5.00	AED 100.00
AED 250.00	AED 11.90	AED 238.10

A common mistake is to work out 5% of the shown price (AED 3.00 on AED 60). That overstates the VAT, because the shown price already includes it.

What goes on a tax invoice

Once you are VAT-registered, you give customers a tax invoice. Most salon customers are not VAT-registered businesses, so you can usually issue a simplified tax invoice, which the FTA allows when the customer is not registered, or when the customer is registered and the bill is AED 10,000 or less.

A simplified tax invoice shows

The words "Tax Invoice".
Your salon's name, address and TRN.
The date of issue.
A description of the services.
The total amount and the VAT included.

A full tax invoice also shows

A unique, sequential invoice number.
The customer's name, address and TRN (for registered business customers).
The date of supply, if different from the date of issue.
Quantity, unit price, the VAT rate and the VAT amount in AED.
Any discount.

Keep your records

Keep a copy of every invoice and your sales records. The FTA requires VAT records to be kept for at least five years. Invoices should be issued within 14 days of the service, which for a salon means at the counter.

How SalonKit handles VAT

In SalonKit you turn VAT on in Settings and add your TRN. The VAT rate is 5% by default. Every bill then works out the VAT inside the price (amount × 5 ÷ 105), prints "TAX INVOICE" with your salon's name, address and TRN, a unique bill number and the VAT amount. Leave VAT off if you are not registered and bills show plain totals. You can also show your salon's name in Arabic on bills. Your daily sheet and Excel exports give your accountant the totals for your VAT return.