A Dubai CommerCity company must register for UAE Corporate Tax and file a return every year, due 30 September 2026 for a 31 December 2025 year end. Online sales to shoppers are income from individuals, which is non-qualifying for the 0% free zone rate, so most stores pay 0% up to AED 375,000 and 9% above, or elect Small Business Relief. VAT applies above AED 375,000.
- Your company is licensed in Dubai CommerCity and sells online
- You sell through your own website, Amazon, Etsy or other marketplaces
- Most of your customers are individuals, in the UAE or abroad
- You hold stock with a fulfilment partner or ship on cash on delivery
Not sure where you stand? Get a free 15-minute review or ask us on WhatsApp.
Do Dubai CommerCity e-commerce companies have to file Corporate Tax and VAT?
Yes for Corporate Tax, from the day the company exists, and yes for VAT once taxable supplies and imports pass AED 375,000 in 12 months. A CommerCity licence gives you free zone status, but an online store that sells to shoppers is taxed much like a mainland store.
| CommerCity business | Corporate Tax | VAT |
|---|---|---|
| Online store selling to UAE shoppers | Registered and files; sales to individuals are non-qualifying | 5% on UAE sales once registered |
| Brand selling wholesale to other free zone retailers | Registered; that income can qualify for QFZP | Normal registration test |
| Marketplace seller with stock imported for resale | Registered and files | Imports count toward AED 375,000 |
| New store, revenue up to AED 3M, not claiming QFZP | Can elect Small Business Relief, still files | Voluntary registration from AED 187,500 |
| Owner earning personally outside the company | Only once business turnover passes AED 1M in a calendar year | Same threshold |
The broader picture for online sellers is in our Corporate Tax for e-commerce businesses guide. This page covers what a CommerCity licence does and does not change.
Why do most Dubai CommerCity stores not qualify for 0% Corporate Tax?
Because the 0% Qualifying Free Zone Person (QFZP) rate applies to qualifying income, and income from individuals is generally non-qualifying. A store whose customers are consumers will usually breach the de minimis limit, the lower of AED 5M or 5% of revenue, within weeks of launch. Our QFZP guide explains the tests.
E-commerce revenue streams and their likely treatment
| Revenue stream | Likely QFZP treatment | Why |
|---|---|---|
| Direct-to-consumer sales on your website | Non-qualifying | Income from individuals |
| Marketplace sales where shoppers are the buyers | Non-qualifying | The end customers are individuals |
| Wholesale to retailers in other free zones | Can qualify | Transactions with free zone persons, if the activity is not excluded |
| Wholesale to mainland retailers | Generally non-qualifying | Mainland customers |
| Advertising or affiliate income paid to the company | Generally non-qualifying | Not a qualifying activity, and typically from non-free zone payers |
Small Business Relief is the usual route for a growing store
A resident company with revenue up to AED 3M can elect Small Business Relief, which runs to tax periods ending on or before 31 December 2029 under Ministerial Decision 131 (August 2026). It is not available to a QFZP, but a consumer-facing store rarely qualifies anyway. Once revenue passes AED 3M, the store pays 0% up to AED 375,000 of taxable income and 9% above. See our Small Business Relief guide.
Does a Dubai CommerCity company need audited financial statements?
For Corporate Tax, only if it claims QFZP status or its revenue exceeds AED 50,000,000, under Ministerial Decision No. 84 of 2025 for tax periods starting on or after 1 January 2025. A consumer store that files at standard rates or under Small Business Relief is not required to audit by that decision.
Dubai CommerCity may have its own requirement for financial statements at licence renewal; confirm the current rule with the authority rather than rely on another zone’s practice. Compare zones in our free zone audit requirements by zone guide, and see the free zone audit guide for preparation.
How does VAT work for a Dubai CommerCity online store?
Sales to UAE customers are taxed at 5% once you are registered, and the registration test adds imports to your taxable sales. Whether Dubai CommerCity is on the FTA’s designated zone list must be checked against the FTA’s current list; even where designated zone rules apply, they cover goods only and do not take a sale to a UAE shopper out of VAT.
Invoices, refunds and returns
For B2C sales under AED 10,000 you may issue a simplified tax invoice, within 14 days of the supply. Every refund or return needs a credit note, and failure to issue a tax invoice or credit note costs AED 2,500 per case, so a store with hundreds of refunds cannot afford to skip them. Our guide to VAT invoice fields lists what each must show.
Marketplace fees and foreign platforms
Seller fees, advertising and software charged by platforms based abroad are generally imported services that a registered business accounts for under the reverse charge. Record marketplace payouts gross, with fees and refunds shown separately, or your VAT 201 and your revenue will not reconcile. See the reverse charge guide and VAT filing for e-commerce businesses.
Your CommerCity renewal does not cover the FTA
Dubai CommerCity renews the licence. The FTA registers you, receives your returns and issues penalties. Nothing about a renewed licence confirms that your VAT or Corporate Tax is up to date.
How do you file a Dubai CommerCity store's Corporate Tax return?
The return depends on marketplace, payment gateway and courier data agreeing with the bank, so reconcile first.
Download every settlement report
Export payout reports from each marketplace, payment gateway and cash on delivery courier for the full year, and match them to bank receipts.
Gross up revenue
Record sales before platform commissions, gateway fees and shipping deductions, then post those costs as expenses. Net payouts understate revenue.
Count and value stock
Take year-end stock at your warehouse and any fulfilment centre, write off damaged or returned items, and calculate cost of goods sold. Our e-commerce bookkeeping guide covers settlements and stock.
Split customers and choose the basis
Separate consumer sales from wholesale to free zone or mainland businesses. For most stores the choice is Small Business Relief (revenue up to AED 3M) or the standard 0% and 9% calculation.
Complete the return and related party disclosure
Enter profit on EmaraTax, add back non-deductible costs and disclose payments to owners, relatives or connected companies, which must be at arm’s length.
Pay and archive
Pay any tax by 30 September 2026 for a December 2025 year end and keep settlement reports and workings for 7 years.
Prefer to hand it over? Our Corporate Tax filing service reconciles payouts and files on a fixed quote.
Which records does a Dubai CommerCity e-commerce company need?
- Marketplace settlement and fee reports for every platform
- Payment gateway statements and cash on delivery remittance reports
- Simplified and full tax invoices, plus credit notes for every refund
- Import documents and supplier invoices for stock
- Year-end stock count from your warehouse and fulfilment partners
- Invoices from foreign platforms for reverse charge VAT
- Bank statements for all accounts and wallets used for sales
- Records of any payments to owners or connected persons
What are the 2026 and 2027 tax deadlines for Dubai CommerCity companies?
| Deadline | Date | Notes |
|---|---|---|
| Corporate Tax return and payment | 30 September 2026 | Financial years ended 31 December 2025 |
| Other year ends | 9 months after year end | Same rule for every company |
| VAT 201 return and payment | 28th of the month after the tax period | Quarterly by default |
| Tax invoice or credit note | Within 14 days of the supply | Simplified invoice for B2C under AED 10,000 |
| E-invoicing ASP appointment | 31 March 2027 under AED 50M revenue | Go live 1 July 2027 |
| Penalty reconsideration | 40 business days from the decision | Then the Tax Disputes Resolution Committee |
Which penalties hit Dubai CommerCity online sellers hardest in 2026?
VAT penalties under Cabinet Decision 129/2025 (from 14 April 2026) and Corporate Tax penalties under Cabinet Decision 75/2023 as amended apply to CommerCity companies in full.
| Penalty | Amount | Rule |
|---|---|---|
| Failure to issue a tax invoice or credit note | AED 2,500 per case | CD 129/2025 |
| Late VAT registration | AED 10,000 plus backdated VAT | CD 129/2025 |
| Late VAT return | AED 1,000 first, AED 2,000 repeat within 24 months, per return | CD 129/2025 |
| Late VAT payment | 14% a year, calculated monthly | CD 129/2025 |
| Incorrect VAT return | AED 500 first, AED 2,000 repeat | CD 129/2025 |
| Late Corporate Tax registration | AED 10,000, waived if the first return is filed within 7 months of the end of the first tax period | CD 75/2023 |
| Late Corporate Tax return | AED 500 a month for 12 months, then AED 1,000 a month | CD 75/2023 |
| Late Corporate Tax payment | 14% a year, calculated monthly | CD 75/2023 as amended |
| No e-invoicing ASP appointed in time | AED 5,000 a month | E-invoicing rules |
Why credit notes matter for stores: if the FTA found 12 refunds in a quarter with no credit note, the exposure is 12 x AED 2,500 = AED 30,000. File that quarter’s VAT 201 late as well and it rises to AED 31,000. Our VAT penalties guide explains each charge.
Refunds without credit notes, or VAT registered late?
We check your marketplace payouts, refunds and VAT threshold history and tell you what exposure your store has.
7 mistakes Dubai CommerCity sellers make with VAT and Corporate Tax
- Believing the e-commerce free zone means 0% tax. Sales to shoppers are non-qualifying, so a QFZP claim fails and 9% applies for five periods.
- Recording marketplace payouts net. Revenue is understated, which can make the VAT return and Corporate Tax return incorrect.
- Skipping credit notes for refunds. Each missing credit note can cost AED 2,500.
- Leaving imports out of the VAT threshold. Registration becomes late, bringing AED 10,000 plus backdated VAT.
- Ignoring reverse charge on foreign platform fees. Omitted reverse charge VAT makes the VAT 201 incorrect.
- Mixing personal and company income. Ad revenue or crypto gains landing in the wrong place make both records and returns unreliable.
- Leaving the ASP decision to 2027. Businesses under AED 50M must appoint an Accredited Service Provider by 31 March 2027, and missing it costs AED 5,000 a month.
How does a Dubai CommerCity store stay on the right side of the FTA?
- Weekly: issue credit notes for every refund and return
- Monthly: reconcile marketplace, gateway and courier payouts to the bank, gross of fees
- Monthly: total 12 months of sales plus imports against AED 375,000
- Monthly: book reverse charge VAT on foreign platform invoices
- Quarterly: file VAT 201 by the 28th of the following month
- Quarterly: count stock held with fulfilment partners
- Annually: decide on Small Business Relief before filing, and file by the 9-month deadline
- By 31 March 2027: appoint an e-invoicing ASP if revenue is under AED 50M
- Always: keep records 7 years for CT and 5 years for VAT
What should a Dubai CommerCity seller do after a late return or FTA notice?
Get current first, then correct history, then dispute what is wrong.
- File every overdue return now. Our missed Corporate Tax deadline guide covers the first seven days.
- Register for VAT if you are already over the threshold, using our late VAT registration guide.
- Correct past returns with a voluntary disclosure, for example where payouts were recorded net. Before an FTA audit notice the penalty is 1% a month of the tax difference; after a notice, 15% plus 1% a month.
- Request reconsideration within 40 business days of a penalty you dispute, following our FTA reconsideration guide. Rejected requests can go to the Tax Disputes Resolution Committee.
FTA notice for your online store?
Send it to us and we will map what to file first and whether reconsideration is worth requesting.
Worked example: a Dubai CommerCity homeware store with AED 1.8M revenue
Imagine an illustrative Dubai CommerCity homeware brand with a 31 December 2025 year end. It sells AED 1,200,000 to shoppers through its website and marketplaces, and AED 600,000 wholesale to retailers in other free zones.
| Line | AED | Calculation |
|---|---|---|
| Revenue, gross of platform fees | 1,800,000 | 1,200,000 + 600,000 |
| Sales to individuals | 1,200,000 | Non-qualifying |
| Wholesale to free zone retailers | 600,000 | Potentially qualifying |
| De minimis limit | 90,000 | Lower of 5,000,000 or 5% x 1,800,000 |
| QFZP | Fails | 1,200,000 is above 90,000 |
| Taxable income | 460,000 | Illustrative, after stock, fees and marketing |
| 0% band | 375,000 | First AED 375,000 |
| 9% band | 85,000 | 460,000 minus 375,000 |
| Corporate Tax at standard rates | 7,650 | 9% x 85,000 |
| Corporate Tax under Small Business Relief | 0 | Revenue within AED 3M, no QFZP claim, return filed |
Thin e-commerce margins keep this bill small, but the relief still saves AED 7,650 if earlier periods were within AED 3M too. Recording payouts net would have shown lower revenue and wrong returns. Test your own figures in the Corporate Tax estimator.
Can a Dubai CommerCity founder file alone, or is an accountant worth it?
Settlement reconciliations are what make e-commerce filings hard; the fewer channels you sell through, the more realistic DIY becomes.
| Consideration | DIY | Freelancer | Accounting firm (Paci) |
|---|---|---|---|
| Cost | Your time and software | Typical market range: lower fees, depends on order volume | Fixed quote within 24 hours; bookkeeping from AED 599 a month |
| Marketplace and gateway reconciliation | Time-consuming | Varies | Done monthly |
| Credit notes and reverse charge | Often missed | Depends on experience | Part of the VAT routine |
| Suits | One-channel stores under the VAT threshold | Small stores with low refunds | Multi-channel sellers with stock and imports |
See our Corporate Tax filing service for CommerCity stores. 1,000+ UAE businesses keep their books with Paci.
What Dubai CommerCity sellers ask us about tax
I am opening a free zone company to sell on Amazon and Etsy. What VAT rules apply when I sell to individuals?
VAT registration is mandatory once taxable supplies and imports pass AED 375,000 in 12 months. Once registered, you charge 5% on UAE sales and may issue a simplified tax invoice for B2C sales under AED 10,000, within 14 days of the supply. Sales to buyers abroad follow export rules; see VAT for e-commerce marketplaces and dropshipping.
I am planning an online marketplace business in Dubai. Which taxes will apply?
The company must register for Corporate Tax whatever its revenue, with 0% on taxable income up to AED 375,000 and 9% above, or Small Business Relief if revenue is up to AED 3M. VAT at 5% applies once taxable supplies pass AED 375,000 in 12 months, and commission income from sellers is part of those supplies.
If I set up an e-commerce free zone company, should YouTube AdSense payments go to the company or to me?
Whoever legally earns the income is taxed on it. If the AdSense account and contract are in the company’s name, the payments are company income under Corporate Tax. If you earn them personally as an individual, Corporate Tax applies to you only once your business turnover exceeds AED 1M in a calendar year. Pick one route, document it, and do not mix the two. See Corporate Tax for content creators.
I want UAE residency mainly for personal crypto trading, with an e-commerce or import-export company on the side. How is each taxed?
The company’s profits fall under Corporate Tax: 0% up to AED 375,000 and 9% above. Your personal trading is a separate question; an individual is in Corporate Tax only for business activity above AED 1M of turnover, and whether trading counts as business activity depends on the facts, so take advice before relying on either answer. For VAT, transfers and conversions of virtual assets are exempt.
Do I need proper inventory and accounting software for my online store?
You need complete records, kept for 5 years for VAT and 7 years for CT, and stock is hard to evidence without software. Businesses under AED 50M must also appoint an e-invoicing Accredited Service Provider by 31 March 2027, so ask any software vendor whether it connects to one. Our accounting software comparison is a good start.
Frequently asked questions
Is Dubai CommerCity a tax free zone?+
No. Dubai CommerCity companies register for Corporate Tax and file every year, and charge VAT once registered. The 0% free zone rate is only for qualifying income of a Qualifying Free Zone Person, and sales to individuals are non-qualifying, so most consumer stores pay 0% up to AED 375,000 of taxable income and 9% above, or use Small Business Relief.
When must a Dubai CommerCity company file its corporate tax return?+
Within 9 months of its financial year end, so by 30 September 2026 for a year ended 31 December 2025, with payment due the same day. Filing late costs AED 500 a month for the first 12 months. See our Corporate Tax return filing guide.
When does a Dubai CommerCity company need VAT registration?+
When taxable supplies plus imports exceed AED 375,000 in the previous 12 months or are expected to within the next 30 days. Voluntary registration is possible from AED 187,500, which can help a store reclaim VAT on launch stock and ads. Our guide on when free zone companies register for VAT covers the test.
Does a Dubai CommerCity company need an audit?+
Corporate Tax requires audited financial statements only for a Qualifying Free Zone Person or a company with revenue above AED 50,000,000, under Ministerial Decision No. 84 of 2025. Any Dubai CommerCity requirement for licence renewal is set by the authority, so confirm it with Dubai CommerCity directly.
Do I charge VAT on sales to customers outside the UAE from Dubai CommerCity?+
Exports of goods outside the GCC can be zero-rated when you keep the export evidence, but zero-rated sales still count toward the VAT registration threshold. Sales to UAE shoppers carry 5%. See our e-commerce VAT guide for cross-border orders.
Is Instagram or TikTok selling from a CommerCity company taxed differently?+
No. Social commerce sales to individuals are treated like any other consumer sale: non-qualifying for QFZP and subject to 5% VAT once registered. What changes is the record keeping, since orders often arrive by message and are paid by link. See VAT for Instagram and TikTok sellers.
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- FTA: Registration for VAT
- FTA: Waiver of penalties
- Ministry of Finance: Small Business Relief decision
- UAE Legislation: Cabinet Decision No. 116 of 2022 on the taxable income threshold
- Dubai CommerCity
Checked against these sources on 15 September 2026. This guide is general information for UAE businesses, not advice on your specific facts.